Do Solar Panels Save Money? (Hint: Yes!) Here’s How
Are you concerned about fossil fuel emissions? Are you considering installing solar panels in your home?
The power the sun provides is clean and renewable. Oil, coal, and gas release harmful emissions into the air.
Solar energy, by contrast, doesn’t produce any pollution. Solar energy can also protect you against a loss of electricity during power outages.
You may be wondering how much it will cost you to invest in environmentally conscious solar power. In the end, do solar panels save money?
You may be surprised to learn how financially advantageous solar power can be. Here’s what you need to know.
1. Save on Electric Bills
The average American family spends $110.76 on electrical bills each month. The higher your electrical bills are, the more money you could potentially save if you switch to solar power.
You’ll also get more value from your panels if you live in a location where there is plenty of sunshine. Keep in mind that the cost of energy is not dropping, and you’ll also be saving more money on monthly bills as time goes on.
Residential solar panels can cost anywhere between $9,255 and $25,552 to install. The total cost will depend upon the number of solar panels it takes to heat your home through solar, as well as the state you live in.
The cost of installing solar panels is reasonable when you consider what you’re getting. The installation team will provide equipment, get converters for energy, and allow you to connect your solar system to the grid. The price also includes labor, obtaining permits, and coordinating with your utility company.
Yet, if you purchase solar power, your savings will add up over time. On average, Americans will save around thirteen cents per kilowatt-hour.
Most solar panels are designed to last for at least twenty years and require very little maintenance. The money you end up saving on your electrical bill could be well worth it.
Before determining if solar panels could be financially advantageous, you’ll want to be sure that you’ll be living in your home long enough to make the investment worth it. Do a little math to figure out what you’ll be saving in utilities each month. Multiply that by the number of years you plan to have the system for.
Compare this to what you’ll be investing initially with simple subtraction.
2. Enjoy the Tax Credit
There is currently a tax credit of 26% of the cost of installing a solar panel system. Many states also offer additional tax credits for solar installation.
It applies to both residential and commercial properties. There’s no cap on its value.
The solar tax credit was introduced to encourage families to use more environmentally responsible means for energizing their homes.
While a tax credit isn’t a windfall, it’s money you won’t have to pay in income taxes. This means you could be saving a lot of money in taxes once you choose solar. You can claim the tax credit when you file your yearly federal tax return.
3. Purchase vs. Renting
Renting solar panels can be far less costly upfront than purchasing the panels. However, many leasing companies include an escalating clause that could evaporate any savings you may have in the future.
Purchasing solar panels could end up making your home more attractive to homebuyers. The amount of money they will be saving in electrical bills makes it a valuable asset. Prospective buyers will also be thinking about how much friendlier solar panels are to the environment.
Rented panels, however, could negatively impact your ability to sell. A home buyer will need to assume your lease in order to maintain the panels, and many are hesitant to do this. The other option is for you to buy the lease out.
Leases usually last around twenty years. If you think you’re going to be selling your home before that amount of time is up, consider purchasing rather than leasing solar panels to improve the resale value of your home.
4. Choosing a Solar Panel Company
Ask trusted friends and family members for recommendations for local solar panel companies. And don’t be afraid to ask questions.
- Was the company timely and professional?
- Were they able to answer all questions and clearly explain installation details?
- Were there any unexpected costs throughout the process?
The right company will be able to explain all costs associated with solar panel installation from the beginning and provide this information to you in writing. There shouldn’t be any surprise payments while you’re getting your panels installed.
Ask a few companies for estimates before you decide upon a company to work with. You’ll want to be certain that the price you’ll be paying is reasonable for your size house and geographical area.
Choosing a local company is important when it comes to solar panel installation. They will be aware of the regulations and climate challenges in your particular area.
If you can’t get any personal recommendations, read online reviews of local companies. Remember that anyone can get a bad review once in a while. If, however, you’re seeing the same comment over and over again, you’re probably getting a good idea of what your experience will be like.
Do Solar Panels Save Money?
Do solar panels save money? Between utility bill savings and tax credits, the answer is yes!
Do a little research and install earth-friendly, efficient solar panels in your home for decades of savings.
Did we pique your interest in solar power? For more information on solar panel installation, contact us today.