EconomicsUp to date · Jan 15, 2026
Energy Return on Investment (EROI)
The ratio of energy delivered by a system over its lifetime to the energy required to build, install, and maintain it. Solar panels have an EROI of 10-25, meaning they generate 10-25x the energy used to make them.
Why It Matters
Solar panels pay back their manufacturing energy in 1-3 years, then produce net-positive clean energy for 22-27 more years. This makes solar genuinely sustainable.
Related Terms
Lifecycle Assessment (LCA)
A comprehensive analysis of a product's environmental impacts across its entire life cycle: raw material extraction, manufacturing, use, and disposal/recycling.
Embodied Carbon
The total greenhouse gas emissions generated during the manufacturing, transportation, installation, and end-of-life processing of a product — before it's ever turned on.