Are you weighing the cost and benefits of residential solar? For many homeowners, the idea of sustainable solar energy is dampened by the reality of solar panel installation cost. Fortunately, there are tax breaks and other benefits that can reduce your solar panel cost and make it a much more solid financial decision. Let’s take a look at the cost of installing solar panels on your home.
To determine whether installing a solar energy system in your home makes financial sense, you essentially need to do some basic calculations. Determine the cost of the system, how much energy it will produce, and what that energy would cost if you paid for it without solar. Calculate how many years it would take for the upfront investment to pay for itself through energy savings, and determine whether the system will pay for itself in five years. If all of this adds up to a favorable conclusion and you can afford to install the system without taking out a loan, it’s probably a good idea.
Before you jump in, though, there are some other factors to consider. First, don’t just go with the first solar panel installer that sends you a mailer, but get estimates from several reputable solar energy providers. The average cost of a residential solar power system can vary widely depending on the size and type of system you’re using, and you’ll also need to factor in additional costs like an inverter, metering equipment, housing components, cables, and wiring gear. You may also want to consider battery storage as well, so that your power will stay on even if the sun is not shining. You’ll have to pay for installation, as well as various costs for operating and maintaining your system. The upfront cost of a solar energy system is the most expensive part of going solar.
Subsidies may be available to mitigate the costs of solar installation. Incentive programs vary from state to state, so check the Database of State Incentives for Renewables & Efficiency (DSIRE) before you make your decision. You might also check with your local utility company to see what kind of incentives it offers, and if you will be able to sell excess power back into the grid. There are many tax benefits available to homeowners who install solar panels as an alternate energy source. The Federal Solar Investment Tax Credit currently allows taxpayers to deduct 26 percent of their installation costs from their federal income taxes, but that credit will be reduced to 22 percent in 2023 and expire in 2024, so it’s time-sensitive. Many states offer tax incentives too, like cash back, waived fees and expedited permits, and exemption from additional property tax if the solar panels raise the value of your home. Some states allow homeowners to sell their excess power to local utility companies.
Whether solar panels are a good idea for you also depends on where you live. For instance, the states that get the most sun are Arizona, California, Colorado, Florida, Kansas, Nevada, New Mexico, Oklahoma, Texas, and Utah, so homeowners in those states would likely benefit from solar. If your home gets ample sun exposure all year and your roof is angled between 30 and 45 degrees, you may be a good candidate for solar installation.
You’ll also need to determine how quickly your solar energy system can pay for itself. To do this, you’ll need to determine how much energy your system will generate and how much money you’ll save on energy costs. The length of time needed to recover the initial installation cost will vary based on your location and the size of your system, and it can sometimes take 10 to 20 years to make up the price of installing your system. However, it’s ultimately a good long-term investment. Going solar is good for the environment and can protect you from future fluctuations in energy costs.
If you decide that solar is the right choice for you and you’re looking for an outstanding solar energy installer with quick turnaround, contact Sunlogix Energy. A leading full-service solar company at the forefront of creating a sustainable planet, powered by the sun, we’ve been voted the Best Solar Company in the Desert by the Coachella community 2 years running. We offer residential and commercial solar, always striving to provide full customer satisfaction by offering premium products and professional installation at an exceptional value. Focused on using renewable energy to create a cleaner earth, we customize solar solutions for our clients, as well as educating them on the long-term and immediate benefits provided by solar installation. Call 888-844-3808 for more information or visit our website to request a free estimate today!