Decide Whether Solar Is The Right Choice For Your Home
If you live in an area with high energy rates and a suitable solar rating, and if you can afford the initial investment, its worth installing solar panels on your home while the 30% tax break is in place for the good of the environment and your wallet. But don’t expect to eliminate your power bill overnight.
If you decide to purchase solar panels, shop around and search for incentives. Consider financing with a solar loan if youd rather spread out the cost over time. Keep in mind that you dont have to buy solar panels you can lease them, too. Leasing offers a lower upfront cost, though since you dont own the panels, they wont raise the value of your home, and you may not be eligible for incentives.
Going solar isnt the only potential way to save money. Learn more about what you can do to lower your bills.
So Are Solar Panels Worth It For You
For the majority of U.S. homeowners, solar panels are a great long-term investment that can add boatloads of value to their home. In fact, depending on where you live, solar systems provide a better and more stable return on investment than the S& P 500 – with the added bonus of powering your home with clean energy.
When assessing whether solar panels are worth it for your home, first consider your location and your monthly utility bill. You’ll also want to focus on easing upfront costs and speeding up your return on investment through incentives and credits.
In the world of solar panels, remember that cheaper isnt always better – and finding a balance between value and quality when committing to a solar installer is the key to a smooth, hassle-free experience for many years.
Local solar companies are the best option when it comes to transitioning to clean solar power and lowering your energy costs. Check out our list of the top solar companies in your area to find a vetted, reputable solar installer near you.
Do You Really Save Money With Solar Panels
Yes, you might be able to save money with solar panels. Whether or not youll see a return on your investment depends on how much power the panels generate, how much electricity costs in your area, and how much you paid for the solar panel system. Shopping around for the most affordable system and financing it through a low-interest loan option can help you save money with solar, especially if you live in a market where electricity rates are high.
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What Is Solar Power For The Home
Homeowners who install solar power systems can receive numerous benefits: lower electric bills, lower carbon footprints, and potentially higher home values. But these benefits typically come with significant installation and maintenance costs and the magnitude of the gains can vary widely from one house to another.
This article will help homeowners make the financial calculations required to determine the viability of solar power in their homes.
Youre Not Eligible For Incentives And Rebates
When it comes to solar power, government incentives and rebates are extremely important.
The most important of these is the solar federal solar tax credit, which is offered by the federal government and has helped grow the solar industry by 10,000% since its enactment in 2006.
The solar tax credit is currently worth 30% you can use it to save over a quarter of the price of your solar system. This incentive can play a huge role in improving the payback period of a solar system purchase.
Additional incentives are usually available at the state level, and sometimes at the local level, as well. Right now, 38 states offer net metering, a valuable incentive that allows you to sell your electricity to the utility company at retail rates, while some states, such as New York, offer state tax credits worth thousands of dollars.
But if youre in a situation where you dont qualify for incentives the federal tax credit, for instance, only applies if you pay federal taxes to begin with then solar energy may not be right for you.
Learn more: Find out which solar incentives and rebates you qualify for
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Pros And Cons Of Solar Panels For Your Home
Like most things, solar power has its benefits and drawbacks. At the same time, some economic costs may be defrayed by the social benefits to the environment and lowering your carbon footprint, which may be more important to you than a purely monetary evaluation.
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Green energy that lowers your carbon footprint
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Net metering allows you to sell back excess energy produced
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You may be eligible for certain tax breaks
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Installation and maintenance costs are still high
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Solar only works when the sun is out
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Parts of the system need to be replaced every few years
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Some tax breaks may have expired or will be expiring
How To Calculate The Number Of Solar Panels You Need
Our solar panel cost and savings calculator is the fastest, easiest, and most accurate way to find out how many solar panels your home needs – and you dont have to do any math. Plus, well give you the average cost of a solar installation for your specific home and how much itll save you on your electric bills.
However, if you want to put pen to paper and work out the calculations for yourself, follow these four easy steps to find how many solar panels you need.
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Companies Pushing Solar Leases Or Ppas
Some solar companies looking to quickly expand their business may advertise misleading messages about getting paid to go solar or free solar panels.
This is often another way of talking about a solar lease or a solar power-purchase agreement , many of which have sign-up promos to draw in customers on a quick sale.
Though solar leases and PPAs can certainly be a viable option for certain homes, purchasing a system, whether outright or through a loan, will offer much better savings over time. Leases and PPAs can often come with strings attached as well, such as steep cancellation fees or complications with selling a home.
The Bottom Line: Solar Panels May Be Worth The Cost For Some Homeowners
Solar energy can help you save on your monthly utility bills. But the savings will only occur after large upfront costs. If youre seriously considering installing solar panels, take the time to compare bids from multiple providers. Depending on your area, the cost difference could be considerable.
Ready to move forward with solar panels? Apply for solar panel financing with Rocket SolarSM.
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How Does Net Metering Work
In short, net metering gives you credit for returning solar electricity to the grid, and it offsets electricity you take from the utility in the future — giving you the full economic value of all the solar energy your solar panels produce. If your solar system is sized properly, you can potentially eliminate all of your monthly electric costs.
Solar panels generate the most electricity during the middle of the day when the sun is shining. The problem is that the middle of the day also happens to be when you use the least amount of electricity. So your panels are generating way more electricity than your home needs at that time.
When solar panels produce more electricity than a home uses, the excess generation is sent to the grid. This is where net metering comes into play. When a net metered system sends solar energy to the grid, your electric meter spins backwards and your utility applies a credit for the full retail value of electricity to your account.
Then at night, when your solar panels arent producing, you take electricity from the grid, spinning your electric meter forward again. At the end of the billing period, the utility nets how much electricity you sent to the grid versus how much you used to determine your final bill – hence the name net metering.
Solar expert Will White discusses net metering in this video:
Are You Planning On Selling Your Property In The Next Ten Years
If you plan to move in the near future, purchasing a solar system may not be worth the investment. Instead, consider options like community solar that dont lock you in to panels on your roof for decades. Leasing your panels may be an option, but keep in mind that leases are typically long-term and can be difficult to cancel.
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Help Protect The Environment
Looking more broadly, solar energy is beneficial to the environment and the planet. That is because solar panels do not create any greenhouse gases when generating energy. This is in contrast to fossil fuels such as coal, natural gas, and oil.
Solar energy is an abundant, clean, and renewable energy resource. Solar panels help to reduce both air pollution and water pollution, as well as reduce hazardous waste. They help to reduce our collective dependence on fossil fuels, which are finite.
If you are aware of your carbon footprint and the need to protect the planet for future generations, the single biggest step you can take is to install solar panels on your property.
Should You Get Solar Panels
Whether solar is right for you depends on various factors, such as where you live, your current utility costs and your budget. Not every household will benefit from solar panels in the same way. If you live in a sunny area, your home is exposed to sunlight on a regular basis and you’re able to take advantage of local and state incentives to offset the cost of your system going solar might make sense.
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Federal Solar Tax Credit
Savings in the form of the solar investment tax credit, or ITC for short, are issued by the U.S. federal government for the purpose of easing upfront costs related to solar panels and their installation.
You receive a credit equal to 26% of the total costs of your solar installation. This translates to $3,900 in savings for a $15,000 system.
Unfortunately, the tax credit is set to decrease over time and will eventually be phased out. Currently, all residential systems are eligible for a 26% credit all systems that are installed after December 31, 2022 will receive a 22% credit.
Beginning January 1, 2024, the tax credit will expire altogether, making the best time to install solar now – while the savings are of the highest value.
How Long Do Solar Panels Last
Because solar panels have very few moving parts, they last a lot longer than many other home systems. Depending on the type you choose, your panels could last 20 30 years and may include a warranty. A solar inverter is another part of most people’s solar installations that turns the DC power generated from your panels to AC which most household appliances use. And while an inverter has more moving parts than the panels themselves, it still should last 10 20 years at least.
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How Much Do You Pay For Electricity
Your current electricity bill is the largest factor in determining how much youll save by installing solar. The first step in identifying your savings potential with solar is knowing how much electricity you use, and the rate you are paying for it. You pay your utility company for every kilowatt-hour of electricity you use, and your rate varies significantly depending on where you live. In some parts of the country, like the South, you can pay under 12 cents per kWh in others, like the Northeast, you could pay 20 cents or more. When you go solar, you reduce or eliminate your monthly electricity bill, so the amount you pay for electricity substantially impacts your savings.
If youre not sure where to start in determining your solar savings, try using our Solar Calculator. Our calculator incorporates local electricity rate data to provide you with a customized estimate of what you can expect to save, and just how quickly your investment will pay off.
How Much Do Solar Panels Cost In Florida
The first thing you need to know before understanding if solar panels are worth it is how much they will cost in the first place.
When you purchase solar panels for your home in Florida, they usually cost almost $30,000. However, because you get a 30% federal solar tax credit, they will only really be about $20,000.
While this may seem a little pricey, its important to note that solar panels, especially in Florida, can save you quite a bit of money.
So lets find out how long it would take to make your money back on solar panels.
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Estimate The Cost Of Solar Electric System Installation
The cost of solar panels plus the cost of system installation will also determine whether going forward makes financial sense. Obviously, the more you pay for a system, the more electricity it would have to generate to be worth its cost.
HomeGuide reports that the average cost to install solar is around $1.77 to $2.20 per watt, with the typical homeowner who installs a 6-kilowatt system paying around $10,626 to $13,230 after receiving tax credits. However, your location and the type of system you want can have a big impact on its price.
For example, if you want your system to be off-the-grid entirely which means it is your sole source of electricity and you aren’t connected to an electric company, i.e. the grid you’d need to also pay for an off-grid inverter and batteries to store excess energy. After all, you’ll still need power when your panels aren’t producing at night or during bad weather. This adds considerably to your cost.
Most solar companies provide free, no-obligation estimates. So as part of this step, you might contact a few reliable solar installers in your area to get quotes and compare prices.
How Much Do Solar Panels Cost
The price of solar panels varies by brand and retailer. However, solar panels only make up a fraction of the total cost of installing a solar system. Ongoing maintenance and additional equipment, like inverters and solar batteries, make up the remaining solar panel system costs.
The total cost of solar panel installation varies from property to property. The Solar Energy Industries Association reports that the average cost of a residential solar panel system has dropped by an annual average of more than 60% over the past decade. In 2021, a standard 6-kWh system costs between $16,000 and $21,000 for professional installation and equipment.
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The Pros And Cons Of Solar Energy
When it comes to solar energy pros and cons, we’ve heard it all: it’s for hippies, it’s too expensive or it doesn’t work. Yet more solar energy systems are being installed on homes than ever. Here, we explain some key facts about the pros and cons of solar energy and answer the main question for homeowners, are solar panels worth it?
Solar panels are more efficient, affordable, and environmentally friendly than theyve ever beenand the 26% federal tax credit makes solar an even more attractive investment for homeowners through the end 2022. However, like any investment, going solar wont make sense for every homeowner depending on their geographic location, roof orientation, and current electricity usage. A free consultation is the quickest way to see if solar is right for you.
In most situations and areas in the US, solar panels are worth the cost of installation and maintenance, providing a good return on investment and benefits to the environment.
Solar Pros
Solar Cons
Note: Many of these solar cons are applicable to older or less advanced home solar technologies and are no longer an issue.
Take Advantage Of Government Incentives
A recently passed federal law incentivizes homeowners to make clean energy enhancements, like installing rooftop solar. A substantial update to an existing energy-related tax break that was set to expire at the end of 2023, the Residential Clean Energy Credit allows taxpayers who have solar installed to recoup 30% of the cost in the form of a federal tax credit.
What that means: A solar setup that costs $15,000 would yield a $4,500 credit that you can take advantage of come tax time to reduce any federal taxes owed. The credit isn’t refundable though, meaning any money left over after your full tax bill is covered wont be paid out to you. But you may be able to apply the remainder of the credit toward taxes owed in subsequent tax years.
The credit applies to eligible equipment installed after Dec. 31, 2021, and remains in effect at the 30% rate through 2032. It decreases incrementally after that.
Depending on your state, you may receive extra incentives like cash back, property tax exemption, waived fees and expedited permits. In some states, homeowners with solar panels can sell excess power to their local utility companies. Look up credits available in your state by reviewing the database of state incentives for renewables and efficiency.
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Maintenance Programs For Solar
Solar energy companies offer maintenance programs that, coupled with virtually no-hassle installation, can take the worry out of the equation. This ease of installation and maintenance can be a much-welcomed change for homeowners who have grown weary of their previous routine of having to schedule delivery of high-costing gas or other energy sources, in addition to the costly repairs that they can incur should their boiler unit or HVAC system unexpectedly require repair.
Solar panels are generally very low-maintenance and since we have a guarantee, there is very little to worry about in terms of adding and using solar panels to your home, offers Emmer. Once they are installed, theres not much you need to do except watch them reduce your bill and make you feel better about your carbon footprint, he adds.
For the most part, the servicing of solar panels is only required when something isnt functioning correctly, and the general upkeep of solar panels wont put a strain on your budget or create unwanted stress as you try to make sure that you keep your solar panels in proper condition so that they can function optimally and continue to save you money for years and years to come. Emmer suggests that solar panel owners plan to have routine maintenance and inspection of their units, which also includes cleaning, at least once per year.
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