Solar panels are the best way to significantly reduce your carbon footprint while saving a lot of money on your utility bills.
There are also plenty of incentives and rebates, like the federal solar tax credit, to help homeowners save more money than ever.
This is why installing solar panels is so essential if you want to do better for the environment while giving your wallet a break from traditional bills. Here is all the info you must know about how much money solar panel installation can save you.
Installing Solar Panels
If you have a high utility bill, you should consider solar panel installation. Especially if you qualify for tax breaks and live in a prime location. It is no secret that the consistently rising cost of electricity is pushing people to go green.
This is why solar panels are attractive to homeowners. But the true cost of solar panels can depend on a few critical factors. According to the Center for Sustainable Energy, a solar system and panel installation can run anywhere between 15,000 and 25,000 USD.
This is a ballpark figure because the costs can change depending on your location and the government incentives you can take advantage of. Some providers may bump up the cost of installation in the US from 18,000 to around 30,000 USD.
So, before you make the biggest leap for the environment, you should understand how your electricity bill impacts your wallet over time.
You will notice a significant difference in the cost of utility bills each year compared to ringing up your local solar panel installers. Click here to get in on the solar power action to retire with a lot more money in your wallet.
How Much Can You Save?
Solar panels can significantly help you save thousands of dollars in traditional bills over your panels’ 25-year lifetime. You can expect to save approximately $1400 in a single year on your annual energy bills.
This is based on a 6-kilowatt (kW) home solar system that generates up to 9000 kilowatt-hours (kWh) of energy. Leading solar panel, manufacturers are also offering panels that can last up to 30 years.
Using a 6kW system again to estimate your savings, you can expect to save around 30,000 USD in energy expenses over time. Imagine having all these savings in the future. You will never miss getting utility bills again.
How to Maximize Savings?
As mentioned above, the first step is reviewing your electric bill. This is because solar panels can generate their own power. This helps immensely offset your monthly utility bills or get rid of them altogether.
So, take a look at your bill to make the big decision. Remember that the higher your electric bill, the more likely you will save from switching to solar power.
This is because electricity rates and usage are volatile. If your utility’s electricity price goes up, you can expect to be charged more on your next bill.
Then you will rush to grab your phone and call your local solar panel installation company to save a ton of money as soon as possible.
Evaluate Sun Exposure
More sunlight means that more energy is produced. This provides the greatest potential to save with solar panels, primarily if you live in a very sunny state.
Even your property’s orientation towards the sun can impact your savings. This is because you may get too much shade that could hinder the potential of your solar panels.
It also helps to examine the roof type to ensure that you can get maximum solar system output.
Always check how sunlight affects your property and whether you can successfully get the most out of your newly installed solar panels. Then you can enjoy never losing money to utility companies again.
Compare the Cost of Solar Panels
Like shopping for anything else that catches your eye, you should always estimate and compare the cost of panels from different providers in your area.
This is one of the most straightforward ways to maximize your savings because you could have an incredible deal on the table that you are unaware of.
Ask various solar panel installers for their upfront costs and how long the panels are designed to last. This should help you estimate the power produced to ensure you get the most long-term savings.
When calculating the total installation price, consider how much energy you consume regularly. Your energy usage should be listed on a monthly utility bill.
This should help providers in your area determine the system size you need and how much power you must generate. Then they will provide a quote to determine how much funds you can save each year to make the upfront installation costs worthwhile.
Government Incentives
Since 2022, there has been a federal law that incentives consumers to switch to clean energy. This involves installing solar panels.
The Residential Clean Energy Credit program lets taxpayers with solar recoup nearly 30% of the cost. This is in the form of a generous federal tax credit. If your solar panel setup costs almost 15,000 USD, you can expect to receive a credit of 4500 USD, which is 30% of the total cost.
Depending on your state, you may get even more incentives like cash back, waived fees, and property tax exemptions. In some states, homeowners with panels can also sell their excess solar power to local utility companies.
Monitor Trade Policy
There are often changes in government trade policies that can impact solar energy prices. These changes involve varying tariffs for imported panels and solar cells that can affect supply and expenses.
So, you should speak to your solar provider to learn more about the solar power installation process and how you can grab the most out of the incentives your local government offers.
Install Solar Panels Today
Now that you have a rough estimate of how much money you can save by installing solar panels, it is time to lessen the load on your wallet. Remember that some people can also get a whopping 30% tax break for installing solar panels.
Not only can you expect to eliminate your expensive utility bill down the road, but you will also be hailed a hero in your neighborhood for showing the environment the love and respect it deserves. If you enjoyed reading this cost of solar panels guide, check out some of our other exciting posts.
