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Know The Facts: All You Can Save with Solar Panels

More people are concerned about protecting the environment than ever before. The result is that people have solar panels fitted on their homes to generate their own electricity.

Solar panels capture the sun’s energy and then convert that energy into electricity. Modern solar panels do not require direct sunlight to function. They can function on a cloudy day. There are a lot of savings to be found by using solar panels.

How Much Do Solar Panels Cost?

The amount you will pay for solar panels will vary based on the size of your roof and the system you choose. It is not cheap to have solar panels installed. However, in recent years, the cost of installing solar panels has dropped dramatically. According to Green City Times, several positives offset the initial expense of installing solar panels.

Most people choose a 4KW solar panel. This is 16 panels that need approximately 29 m² of space. This generates enough energy for a typical family that has between three and four people. Depending on the family’s energy use, they may require a little energy from the grid.

Most families can completely recoup the cost of their solar panel installation in as little as 15 years. Larger solar panel systems cost more to install, but they generate more energy. A 5KW system may pay for itself in less than 15 years.

With installation, on average, a 5KW system costs between three and five dollars per watt. This means that average homeowners will pay between $15,000 and $25,000 for their solar panel system, including installation. But this is before you add on any tax credits or incentives.

Government Incentives Lead to Greater Savings

The United States government wants homeowners to install solar panels as an alternate energy source. For this reason, there are federal tax credits that let taxpayers claim up to 26 percent of their installation cost if the system is put in place by December 31, 2022. The credit drops to 22 percent in 2023 and disappears in 2024.

To be clear, this tax benefit is nonrefundable. There are additional credits that vary depending on the state that you rent. But there are property tax exemptions, waived fees, expedient permits, and even credits earned by selling excess power to local utility companies. You are not going to get a refund, but you will be able to reduce and possibly eliminate your taxes.

The financial incentives the government offers people to install solar panels are constantly changing. It is good for a homeowner to look at credits available in their state and take advantage of all incentives to save more by installing solar panels.

Lower Your Electric Bill

Since solar panels generate their own power, they can drastically lower your monthly electric bill. In some cases, you can eliminate them. The higher your electric bill, the more money you will probably save by installing solar panels. Of course, the cost of electricity is volatile. These fluctuations will impact the amount of money you save every month.

Something else that will impact the amount you save by installing solar panels is the amount of light exposure your home has. In states like Arizona and California, there are more sunlight hours each day. Naturally, solar panel owners in those areas are benefiting more.

Other factors that influence the amount you save by installing solar panels are your home’s orientation to the sun, the shape of your roof, and the amount of shade on your roof.

Do Solar Panels Save Money?

Absolutely. The amount of savings varies based on the state. For example, if you install a 6KW solar system in Arizona, you are going to pay $11,214. In Arizona, on average, you will pay 12.26 cents a kilowatt-hour. Over 20 years, you will save $16,866. This means that at the end of 20 years, you have made a profit of over $5,000.

Things are even better in California. In California, the average system is going to cost around $13,500. The average electricity rate per kilowatt-hour is $0.18. This means that over the course of 20 years, you will save over $49,000 by using a solar panel. You have more than tripled your initial investment.

Conclusion

Solar panels can save you money and bring a phenomenal return on your investment. The price of energy is not going to drop anytime soon. This makes investing in solar panels a smart way to save cash.

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