August 1st, 2022 | Updated on August 4th, 2022
Since 2019, residential solar system installations have been growing 32 percent yearly. With such high growth, you might be feeling the urge to join the trend and go solar.
There’s no doubt that solar power offers excellent benefits. It will reduce your carbon footprint, make you energy independent, increase the value of your home, and even reduce your electric bills.
Sounds all good until you learn that the cost of going solar ranges from $15,000 to $25,000, depending on your power consumption. Clearly, home solar is a big-ticket purchase, so the average consumer is bound to wonder whether it really makes financial sense.
Read on for expert insight.
Solar Power and Energy Bills: How Much Will You Save?
The average American spends about $115 a month ($1,380 a year) on electricity.
One of the biggest promises of solar power is it will significantly reduce your energy bills. On the surface, that’s true. If solar panels fully power your home, you’ll do away with energy bills since no electric utility company serves the property.
This raises another question: how long do solar panels last?
Solar panels are designed to last a long time, but not forever. You can get about 30 years of reliable use from a quality solar power system. But how do this compare to the cost of using electricity generated from using fossil fuels?
Assuming your electric bill will stay at about $1,380 a year for the following years, you’ll spend about $41,000 over 30 years. If you compare this with the $15,000-$25,000 cost of going solar, it’s easy to see that, overall, solar is cheaper.
Making the Most of Solar Incentives
The cost of installing solar power has reduced significantly over the last decade. Newer technologies have solar panels and related components cheaper to produce, but the solar incentives offered by the government also make a big difference.
For example, the Federal Solar Tax Credit gives homeowners who go solar a 26 percent tax credit in 2022. In effect, this reduces your home solar installation cost by about a quarter.
Many state and local governments are also offering a raft of incentives, which will bring down the installation cost even further. Some solar dealers (follow this link to learn more) also offer attractive discounts.
So, if you already have a quote for installing solar but haven’t factored in all the incentives you qualify for, you’d be surprised how affordable going solar can be.
Factoring in Home Value
Switching to solar power has both direct and indirect effects on your finances. A change in your home’s value is an indirect effect.
According to research by Zillow, solar panels increase a home’s value by 4.1 percent, on average. This means if you were to sell your home, you stand to pocket a bit more money. And even if you don’t plan to sell, the increase in value will increase your equity in the home.
Going Solar Is a Financially Sound Decision
Going solar has many benefits but comes at a high financial cost. But, as the article has demonstrated, the price is worth it. Solar power will not only save you money, but it will also potentially make you money.
Switch to solar today, and don’t forget to keep reading our blog for more tips and advice