Will Free Solar Panels Save You Money
You may have various reasons for going solar. If youre like most people, saving money, eliminating your utility bills and/or reducing your carbon footprint are probably at the top of the list. The environmental benefits of going solar are more or less the same regardless of who installs your system, so its key to focus on the financial benefits.
Regardless of its do-good image, the solar industry is an industry like any other: the companies offering products are looking to turn a profit. Providers of solar leases make their money by selling you electricity, usually at a lower rate than what you pay your utility.
Although companies like SolarCity once dominated the market for solar leases, countless other players have since entered the space and begun competing with each other. Some solar leases will save you more money than others. You as a solar shopper can now take your pick of company based on their offer. So even if financial gain is secondary to environmental considerations for you, you should still shop around to make sure youre getting the best deal.
Interested in learning about your local solar options? By shopping on the EnergySage Solar Marketplace you can compare not only solar lease options, but also purchase and solar loan options. Sign up today to get quotes from solar installers in your area.
Do Bigger Installations Increase Home Value
Home solar energy is yours to control while adding property value. Research shows, however, that the wattage generated by a solar installation does not proportionally raise the value of a home. So, installing a massive solar array on your rooftop wont necessarily equate to a higher resale value. A solar installation that sufficiently meets your energy needs is enough for you to recoup the price of your installation.
How Much Do You Spend On Your Energy Bill
If you know how much you are spending on energy each month, this will be the first step when it comes to deciding if you are a good candidate for solar. The main thing you want to confirm is that switching to solar will save you money. If you live in an area where the electricity is not expensive, it may not be worth it. For other people, your electricity bill may be incredibly expensive!
If your monthly electricity bill is at least $75, then you are most likely a good candidate for solar. This is because solar replaces standard energy with solar energy, which means you want to spend less than what you were spending before. You can do this, but paying less for your energy and selling your excess. The main plan is that you should end up paying less than you currently pay.
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How Many Solar Panels Are Needed To Run A House
Are you thinking about adding solar to your home? With over 2 million homes in the United States with solar now, many homeowners are recognizing how beneficial they are. If youre considering having solar panels installed in your home and not sure where to start, then youve come to the right place.
Were going to go over the details of how solar panels work and how many you might need for your home.
Lets take a look.
Consider All Of The Costs
Solar panels will almost certainly save you money in the long run, and the longer you stick with the renewable energy source, the more you will end up saving as you watch your utility bill shrink. However, there are costs that need to be considered.There is the initial up-front cost of the panels, which can be quite expensive. You will want to consider if it is possible to pay for this expense outright or if you will need to finance the purchase. Make sure you account for the interest rate and how it will accrue over time. You can also rent solar panels.The installation process itself will likely require hiring a contractor, and you’ll have to account for the costs associated with that including any modifications needed around your home to accommodate the solar panels. Permits may also come with a one-time fee. Finally, consider the potential maintenance that will be required over the lifespan of the panels.
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Does Solar Energy Storage Qualify For The Solar Tax Credit
Homeowners and businesses may be eligible for the Federal Investment Tax Credit on their solar PV systems, worth up to 26% in 2021 by meeting certain criteria like owning your system and not leasing. So do solar batteries also qualify for the tax credit as well? The answer is YES but with one main condition.
According to the Solar Energy Industries Association , in order for the cost of installing a residential solar battery system to qualify for the savings of the Solar Tax Credit, it must derive 100% of power from an onsite solar array. This means your solar energy system, whether thats rooftop solar or a ground-mount solar PV system, must charge your solar battery exclusively for the battery to qualify for the tax credit savings. Charging a solar battery from the electricity grid does not qualify.
Is Solar Good For My House
If you live in an area with high energy rates and a suitable solar rating and can afford the initial investment, its worth installing solar panels in your home while the 26% tax break is in place for the good of the environment and your wallet. But dont expect to eliminate your power bill overnight.
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Is Solar Right For Me
The Solar System Estimator is an online tool that you can use to help determine the benefits of installing a rooftop solar system on your home.
Use the tool to find your solar savings potential based on your rooftop characteristics, your electricity use, SMUD electricity rates and available tax credits and rebates.
Will Installing Solar Panels On My House Be A Good Investment
In some areas, installing a solar panel system on your house can now offer a better return than traditional investments like property or shares. However, this is not the case in every situation. The residential solar calculator above will help you determine whether solar panels are suitable for your home and give you local information about costs, savings, tax credits, and other local incentives.
The calculator above will also show you what your payback period is likely to be based on your location and energy use
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Solar Incentives And Rebates
In the past, solar panels were not very affordable. But now there are a lot of incentives and rebates that can help offset installation costs.
The federal government offers a 30% tax credit for anyone who installs residential solar panels in their home or business by 2021. This means you get to deduct up to $10,000 from your taxes.
There’s also something called Net Metering, which lets homeowners sell back excess energy to their utility company at retail rates .
This usually makes it profitable for people who use less than what they generate during peak times when electricity prices are highest – like during summer months when air conditioners run.
How Do I Know If I Am Eligible
GRIDs Energy for All Program provides solar to families with low to moderate incomes in specific states and regions. Our organization uses state and other government funding to provide solar systems to homeowners who meet program specifications, so we need to verify your income level and homes location, as well as other factors, to determine your eligibility. Contact the GRID Client Care Team by phone at 866-921-4696, or start the process online.
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Do Solar Homes Sell Faster
The length of time that a solar powered home is on the market often varies by region of the country. While early analysis performed in six states by Lawrence Berkeley National Laboratory found that solar homes take an extra eight days to sell,9 new research shows the opposite. A solar energy installation will help sell your home 20% faster than residences without solar panels.1
Todays rapid expansion of solar across the country is increasing appraiser and homebuyer understanding of the reliable, long-term benefits of grid-tied solar. This has accelerated the speed of sale and raised sellers revenue for solar homes.
Keep An Eye On Trade Policy
Changes in government trade policy also impact prices. In January 2018, President Trump imposed a four-year tariff on imported solar cells and panels that started at 30% and was set to drop 5% each year until February 2022. In 2020, the tariff rate for the fourth year was raised from 15% to 18%. The tariff resulted in a 16 cent per watt increase for the average consumer in 2018, which translated to an overall increase of $960 for a six-kW system, according to EnergySage.
The cost of foreign-manufactured panels may still drop, lessening the tariffs effect over time.
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How Much Will Solar Panels Cost For Your Specific House Based On Your Location And Energy Use
While average price is interesting, your house is unlikely to be average. What you really need to know is how much solar panels will cost to install on your particular house given its location, electricity usage, and what kind of savings and payback period can you expect.
SolarReviews has developed a very sophisticated solar panel cost and savings estimator that can answer this question for you based on your local weather, your local utility rates and the prices of your local solar companies.
Calculate how much solar panels will cost for your house based on your location and current electric bill
We get it – $12,000 isnt pocket change. Luckily, there are many zero-down solar financing options available, like solar loans, that allow you to go solar and start saving the minute the panels are turned on, without having to worry about any large upfront costs. We recommend solar loans rather than leases because you keep the solar tax credits.
With solar leases the leasing company gets the tax credits and, if you sell your home, the buyer needs to accept assignment of the solar lease. With a solar loan you own the system and so this is not necessary.
Note for new solar enthusiasts: Solar system capacity is measured in watts and kilowatts. One kilowatt is 1,000 watts. The kilowatt rating of a system is a measurement of the maximum generation capacity of the system.
How To Decide If Solar Is Right For You
So you’re thinking about installing solar panels on your house? Let’s take a look at some factors that will help you make an educated decision!
- Do you live in a sunny area?
- Does my roof face south?
- Are there trees nearby that might cast shadows on my home or limit sunlight exposure?
- How much space is available for solar panels on my roof and what type of rooftop material does it have ?
- What are the local laws regarding installation and do they require permits or inspections before I can install them myself ?
These are all important questions to consider when deciding whether or not solar is right for you. To get all your questions answered talk with one of our experts.
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Rent A Roof Vs Self Funding
The chart below shows the difference in earnings there is between free solar panels through the rent a roof scheme and buying the solar panels:
As you can see, the real earnings come from cashing in on the feed-in tariff payments which you will get if you are the owner of the solar panels. Over 20 years the difference is enormous.
With solar costs at a record low, if you can afford the initial installation cost or can find a good solar finance option, you will be far better off buying the solar panels instead of opting for the Rent a Roof scheme.
You can get a bespoke quote from a trusted installer operating in your area by filling in the form at the top of the page.
Selling A House With Leased Solar Panels Follow This Game Plan
A solar lease gave you the opportunity to run on sun without having to pay the $11,000-$14,000 that it costs to install panels in one fell swoop. Youve saved energy, lowered your low utility bills, and felt the undeniable pleasure of sharing these perks when the topic of solar came up with anyone who would listen.
Now, youre ready to sell your house and suddenly your leased solar panels are looking more like a speed bump than a green light. You wonder, just how much will my solar lease impact my home sale?
Here well cover your options and how to communicate the benefits of solar power to prospective buyers. For added expertise, our guide features advice from top real estate agent Elmer Morales who has 18 years of experience selling homes with solar panels in Ontario, CA, the state leading the way in solar energy
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How Much Does A Solar Installation Cost
This can vary depending on the company, but for an average installation, it can run you between $15,000 and $30,000.
Many solar companies offer incentives and financing. There are a ton of other financial benefits that come along with installing your home:
- Electricity rates have risen across the nation and are higher now than they have ever been
- You can save thousands on electricity bills and will only continue to save more over time
- The resale value of your home skyrockets. Many home buyers now are searching for homes that come with a solar system already installed
- The government offers a massive tax credit when it comes to solar systems. Some states also offer a rebate program
- The systems come with a warranty that secures your investment for at least 25 years
Maximize Power Production From The Sun
The electricity generated by a solar panel system is ruled by its rated power output. Yet, its dependent on other factors as well to best serve your energy usage. These include: panel efficiency, temperature sensitivity, shading, and the angle of your roof. A roofs angle, though, has less impact on panel performance than the direction it faces. Top production occurs when solar panels face south a tilt angle of 30° to 45°.5
Additionally, available sunlight varies by location. This brief equation shows how sunlight and a solar panels specifications turn into the amount of power generated.
Lets say on a good day, you average 5 hours of direct sunlight. Multiply 5 hours of sunlight x 290 watts from a solar panel = 1,450 watts or roughly 1.5 kilowatt hours per day. Thats about 500-550 kilowatt hours of energy per year from each panel on your roof.4 How does that compare to your annual energy usage?
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Solar Panels Are Generally Low Maintenance
The Energy Saving Trust says little maintenance is required on a properly installed, well-designed solar PV system, though you’ll likely need to replace the inverter a gadget which is a key part of the mechanism within about 25 years .
Of course, though, things can go wrong. If so, check the installer warranty you get it can cover you for up to 20 yeas. If the panels are damaged by something unexpected, like a storm, you may also be covered by buildings insurance check with your insurer before you have them installed.
Fha Powersaver Second Mortgage
This loan is eligible for a wide variety of power saving ends, hence PowerSaver. Its like having a second mortgage, hence Second Mortgage. Cryptic, they are. You can borrow up to $25k and pay it back like a traditional loan over a maximum period of 20 years. Interest rates hover around 4.99%-9.99%.
Any conditions I should know? You cant have an existing home equity loan. Also, you need a minimum credit score of 660, a maximum total debt to income ratio of 45% , and a maximum combined loan-to-value of 100%.
Wait, Federal Housing Association? They dont dish out loans. Not a question, but well take it. No, the FHA dont dish out loans. Instead, they insure lenders. So if a borrower like you cant pay up, the FHA swoops in and saves the day.
There must be a catch. You have to pay annual FHA mortgage insurance, typically between 0.4% and 1.1% of the loan value, and an up-front insurance premium of 1.75% of the loan amount.
Fair enough. So where do I get these loans from, then? Check out the list of FHA approved lenders in your state here.
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Space And Water Heating
Furnaces are not eligible under the Canada Greener Homes Grant. The only exception is when you reside in an off-grid community, please review the information on the north and off-grid communities if it applies.
Canada’s cold climate means that space heating accounts for over 60% of the energy used in the average Canadian home. Learn more about energy-efficient heating equipment
Many homes in moderate climates can rely on heat pumps to heat or cool their homes year-round. In colder climates, a cold-climate heat pump is more effective and reduces the need for a supplementary heating source. A heat pump is an electrically-driven device that extracts heat from a low temperature place and delivers it to a higher temperature place. Learn more about heat pumps
A contractor or energy advisor can help with estimating the economics of heat pumps in your area and the potential savings you can achieve. Heat pumps in general can come at a higher cost compared to other heating systems due to the number of components in the system. In some regions and cases, this added cost can be recouped and significant GHGs savings can be made in a relatively short period through energy cost savings. However, in other regions, varying utility rates can extend this period. Speak with your energy advisor to see if a heat pump is right for you.
Your new heat pump must be on one of the eligible list of products below in order to be eligible for reimbursement.
