Energy cost is reaching its peak. Many homeowners and businesses are prioritizing the methods to cut down on this heavy expense. The most preferred and popular method to do is switching to solar.
However, before making such a substantial investment, many juggle with the question ‘Are solar panels worth it? In this post, we will help you understand how solar panel installation helps you save thousands of dollars.
Let us break down the saving benefits of installing solar and help you make super-easy decisions!
Like every other thing, the price of energy is going up and will keep on rising exponentially in the future. But, if you adopt green energy, you can save 30% of the total power cost.
Roughly, after solar installation you can save 600 power units every month. This means you can cut down your electricity bill by $75.2.
Great savings, right?
But! If these figures still seem unconvincing, let’s dive in more deeply and understand how installing solar systems can help you save thousands of dollars. Let’s get started!
How does solar installation help homeowners save huge money?
The cost of electricity is rising. Switching to cost-saving and reliable energy production methods has become one of the biggest priorities for homeowners and even companies.
Solar energy is the best alternative to save thousands on your utility bills. Once you adopt green energy, you can save a lot of money in the long run.
To elaborate more, here is the list of how solar energy helps you save money and help you find answers to the ‘Are solar panels worth it?
Electricity cost
The residential electricity rate on average is 23 cents kWh in the United States. However, the exact cost depends on the state where you reside. For instance, in California, the energy cost is 28.28 ¢ per kWh whereas in Idaho it is 10.35¢ per kWh. The fluctuation in the electricity cost makes it difficult for people to plan a budget.
Whether it is low or high, the cost of electricity is still high and going to rise in the future. Here, installing solar panels enables you to generate your own power and drop the usage of electricity from the grid. This greatly helps homeowners to minimize or completely get rid of power bills. Once you install solar panels on your home rooftop, you can expect non-fluctuation in power bills and plan out a better expenditure.
Low maintenance
Many people have this misconception that solar panels require heavy maintenance. But, that’s not true! Solar systems need little maintenance as they consist of only a few movable parts. Parts that are movable are subjected to rusting, wearing out, and breaking down as they are used repeatedly. Such parts need regular maintenance to make them work efficiently.
This is not the case with solar panels. As only a few movable parts are attached to a solar system, the routine servicing and maintenance are considerably minimal. There are fewer odds of repairing or replacing interior components. The solar system does require check-ups to avoid building up debris or dust. Because it blocks the sun’s rays and makes it inefficient in absorbing them. But a regular visual check gets the 70% job done.
Property value
Solar panel installation not only saves you thousands on electricity bills but also increases the value of your property. How? Just like you, many people struggle with the payment of utility bills. An installed solar system augments your property value. Whenever you put your house on sale or decide to rent it out, you can quote a higher price for it.
Like you, many homeowners and property buyers know that solar panels minimize energy bills. The long-term saving factor that comes with a solar system increases the overall value of your house. According to NREL (National Renewable Energy Laboratory), with every $1 saved on energy bills, the value of your house increases by $20. This means if solar panels save you $500 every year, the value of your house augments by $10000.
Federal tax benefit
Yes, you read that right! Installing a solar system on your rooftop can help you earn a federal tax credit. The federal government passed solar ITC (Investment Tax Credit) back in 2006 which says you can lower your tax bills while getting credited for your taxes. This rose the demand for green systems due to which the solar industry in the United States has experienced an average growth of 50% in the last decade.
Installing a solar system not only minimizes your power bill but also helps you qualify for ITC. Solar ITC provided 26% tax credits for solar systems in 2021. The key motive behind providing this benefit is to encourage the usage of green solar power. Please note, you can claim this benefit only once on unleased residential systems.
Power storage
Yes, it is true. You can save power in the residential PV (photovoltaic) system. Using an electric battery bank, flow batteries, lithium-ion batteries, or lead-acid you can store the power for future usage. The best part is, solar storage can be done very inexpensively. If you want to utilize this benefit, you need to invest in the solar battery system. Depending on your location and needs, it would cost you between $12000 to $22000.
Most homeowners purchase solar batteries at the time of system installation. If you want to look for a budget-friendly solar battery then lead-acid batteries are the right choice for you. However, they are not very efficient and don’t last long. Therefore, if you want the best value then buy lithium-ion batteries. In terms of performance, cost, availability, and lifespan, this battery is considered the right option.
To Conclude
By now, you must have understood how installing a solar system can help you save a lot of money in the long run. However, to get the most out of your solar investment, you need to pick the best and highly efficient panels.
Solar system installation is undeniably an expensive investment, especially when you plan to buy it upfront. However, the long-term benefits weigh heavier than the cost.
Hope we helped you in your decision-making process!
