Tuesday, 02 June 2020

Will Solar Panels Save You Money?

Written by Posted On Tuesday, 04 December 2018 14:35

 

Solar panels have surged in popularity over recent years, and for a good reason. They’re environmentally conscious and can be considered a wise investment choice for homeowners. That said, are they actually capable of helping you save money in the long run? Or are they just a costly remodel to overlook?

Let’s get into what you need to know.

Sunlight Exposure

Some homes are more exposed to sunlight than others. For example, if you live in Southern California, you’re going to receive more sunlight than, say, Alaska.

As a general rule of thumb, more sun exposure means more energy production- which means a more significant potential to save money using solar panels.

That’s not to say you can’t benefit from going solar if you live in a state with less exposure. You just might not receive as much money back (as your energy costs are typically lower).

 

Installation Costs

Once you factor in the panels themselves and the installation, the process of going solar isn’t exactly cheap. You may be looking at upwards of tens of thousands of dollars depending on the size of your home.

When you calculate the total price, you must consider how much energy you typically consume. You can find this number on your monthly utility bill.

As each company will have their own rates, it's wise to ask for about 3-4 quotes to determine the best price and company for your needs.

Incentives & Rebates

 

The government rewards homeowners for going solar. The federal tax credit currently allows taxpayers to claim 30% of installation costs for systems placed by December 31, 2019. However, this figure drops to 26% by 2020, 22% by 2021, and is completely eliminated by December 31, 2021. In other words, if you plan to go solar, you should act fast!

The incentives vary state by state. That said, if your state has an especially high solar ranking, you may be able to score extra incentives that can range from:

  • Cashback incentives

Property tax exemptions

Fee waivers

Expedited permits

It’s recommended that you check with your current state of residence to see what you are eligible to qualify for.

Long-Term Vs Short-Term Savings

Typically speaking, you won’t make money immediately off solar panels. They’re considered a long-term investment, and that’s why they’re usually recommended for homeowners who plan to stay in their current residence for at least another ten years.

The average family spends about $1500 each year on electricity. Furthermore, national electricity costs tend to increase at a rate of 2.2% each year due to inflation. However, by going solar, you may be able to save up to $100 each month. Long-term, this strategy can certainly help you to net profit.

Finally, if you do plan to sell your home, solar panels can help you generate more money. Research suggests that homes with solar panels sell 20% faster than homes without- and for up to 17% more money.

Final Thoughts

There are numerous factors to consider before deciding to go solar. That said, this decision can be a wise investment choice for homeowners. Furthermore, it’s an incredible way to help do your part in protecting the environment!

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