The number of people interested in going solar has significantly increased over the years. For starters, the idea of having a reliable power source and the reduction in utility costs is enough to get anyone interested in solar energy.
Also, considering it increases a home’s value and uses a renewable energy source, makes it more appealing.
But hold your horses!
Considering that solar panel installation costs can quickly go through the roof, are solar panels worth it?
This article focuses on solar panels for home, finding out whether they are a rewarding investment.
Let’s delve into the specifics.
The cost of solar energy to homeowners
So, is solar energy expensive?
The average solar panels for the home cost $16,000 and can go up to $35,000. However, these figures fluctuate depending on the number of panels installed, the geographical region, installation fees, the brand you choose, and their efficiency.
Since the prices differ from one home to the other, PPM Solar are reputable installers that will analyze how the above factors apply to you, giving you an accurate estimate.
Calculating Solar Power Costs
The Discounted Cash Flow method is a popular calculation technique that determines the overall value of the system. It focuses on the total solar paneling costs comparing them against the expected income, especially if you sell energy to the grid.
You can also compare the Levelized Cost of Energy (LCOE) to local electricity charges to find out the system’s viability. A simple formula to know the LCOE is:
Net Present Value of the Lifetime Cost of Ownership / Lifetime Energy Output
Government incentives for solar energy
The government offers various incentives to encourage buying solar panels for a house. They include:
- Federal tax credits: the US government is offering 30% tax credits on the total installation cost for systems mounted before 2033.
- Tax deductions: home business owners with solar systems are entitled to tax deductions.
- Solar Renewable Energy Credits: this is an incentive that allows solar owners from Pennsylvania, Ohio, Maryland, and DC to earn income from the power their systems generate.
Are solar panels a good investment for your home?
The use of solar panels in homes is an excellent investment because they significantly slash energy bills, allow homes to go off-grid, and reduce carbon footprint.
Furthermore, they improve a home’s value and have a high likelihood of earning you money.
Pros and cons of solar panels for your home
Like any other product, solar panels have advantages and disadvantages that we would like to explore.
Let’s dive into the details.
- They bring down or do away with electricity costs
- They are environmentally friendly as they reduce carbon footprint
- Homes with solar systems are appealing to potential buyers, thus increasing the property’s value
- Opens you up to money-saving incentive programs
- They are low maintenance
- They allow you to enjoy energy independence
- Can be expensive
- Prolonged payback durations
- Requires professional installers
How long do solar panels pay for themselves?
How long solar systems for houses take to pay back varies from one home to the other. Generally, it will depend on:
- The total installation costs
- The amount of energy you use in your home
- How much your local utility company pays for power fed to the grid. Be keen on the SEG Tariff rate
- The size of the panes
- Your geographical location. Solar systems installed in sunnier areas are likely to pay for themselves faster compared to those mounted in cloudier places
- Your roof’s shading
- Inflation rates
How much can I save with solar power?
The amount you can save with solar power for homes depends on various factors but many Americans will save approximately $1,500 every year.
For instance, a solar owner residing in areas where utility companies offer rates that fluctuate depending on the time of day will save more than one living in areas with a flat rate.
Additionally, the more solar panels for residence you have and the sunnier your location, the more savings you will witness.
From what you have gathered, it’s clear that solar panels are worth it. They improve our quality of life as well as ensure peace of mind.
If you are still questioning, “where should I get solar panels?” we have got you covered.
PPM Solar is a solar system installation company offering best-in-class residential, commercial, and energy storage services. We will help you find affordable solar panels that handle our unique electricity needs and allow you to enjoy a return on investment.
Contact us today for a free estimate.
Interesting Related Article: “Who Needs Nuclear Energy When Wind and Solar Power Are More Affordable?“