Homeowners can save money with solar panels by significantly reducing their electricity bill or even cutting it off completely by going off the grid. At a time when the cost of electricity is rising, making an investment in solar panels makes sense, and it is most likely to pay for itself in the short term.
There are also the tax credits on top of that. The US government offers a significant tax credit to homeowners who install solar panels to encourage environmentally friendly and sustainable alternative energy sources. Additional credits are provided by various states, as well as other incentives like expedited permits, waived fees and cash back.
Based on the average amount of sunlight, you can estimate that if you install a 3kW system, you will create 450 kWh per month. This means around half of the average household monthly electric bill. If we estimate that bill at $100, the initial investment of $10,500 in a 3kW solar panel system will save you approximately $50 a month during the life of your solar panel system. A solar panel system purchased today is expected to provide more than 20 percent average ROI.
Homeowners investing in solar panel systems will recoup their investment money in around 17.5 years. Another possible option is to lease your solar panel instead of buying them. In this case, you have the advantage of a lower upfront cost. If you can afford the initial investment and live in a state with a suitable solar rating, then installing solar panels in your home is well worth while the 30 percent tax break is in place.
You have to take into account local renewable energy incentive plans and local utility rates when you are making your choice to buy a solar system. You may inquiry the local installation company about the payback period and the cost savings for different sized solar systems.
Tech experts forecast that within the next five years, based on the falling prices for solar panel modules, even without incentives, solar energy will compete with local utility rates. Authorities in the field base this prediction on the annual cost increases and the current cost of retail electricity. This prediction holds true especially if you live in an area with significant sunshine and where the price of electricity is high, These factors will cause solar generated electricity to be very competitive.
Regardless of whether you’re looking at carbon emissions or finances, it is certain that solar panel systems can generate big savings. Over a 20-year period, you electricity savings can range from the low end of $7,000 to upwards of $30,000. If you are interested in a more detail estimation, you may use one of the free solar calculator tools available online. The right company to go with in your area will be easy to find online, since they do marketing through local digital marketing companies like Oxbow in SEO Boston.