Is solar worth it for you? This guide will help answer that question. We think that solar panels are worth it and a great investment for those looking to save on their electric bill. Of course, there are pros and cons to owning solar panels, and our guide is going to cover it all.
Here at The Energy Professor, we want to give you the information you need to not only save money on your energy bill but also to become more energy efficient. We hope find this post helpful! It makes it easier for you to know more about solar panels. Be sure to check out our solar tool below to calculate how much you could save at your address by switching to solar panels.
The Energy Professor Solar Panel Tool
Is Solar Power Worth It?
Solar panels are worth it. Particularly for those aiming to reduce their monthly electricity bills. Beyond the immediate cost savings, there are several reasons to consider solar panels a beneficial long-term investment. The increasing prevalence of solar panels in neighborhoods is partly due to government incentives in certain areas. If you’re contemplating whether going solar is a good idea for your home, we outline the top reasons why solar panels can be a valuable addition below!
Reasons to get Solar Panels
- Immediate savings
- Tax Credits and Rebates
- Environmental Benefits
- Increased Home Value
Immediate Savings
Homeowners can save $10,000 to $30,000 over 20 years with a residential solar panel system, depending on its size and local electricity rates. Immediate financial benefits manifest through reduced or even eliminated electricity bills upon installation. As traditional energy costs rise, the substantial financial returns and energy savings from solar panel options make them an increasingly popular choice for cost-conscious homeowners.
Tax Credits and Rebates
Investing in solar panels not only reduces energy bills but also earns a 30% Federal Income Solar Tax Credit, reducing the upfront cost significantly. Along with various state credits and local rebates, these incentives make the initial investment more manageable, transforming solar panels into an attractive option that balances initial costs with substantial long-term savings.
Environmental Benefits
Adopting renewable energy combats Global Climate Change and reduces reliance on pollutant-emitting traditional sources like coal and natural gas. Transitioning to renewables, such as solar panels, not only advances public health but also addresses the looming energy crisis. The U.S. Environmental Protection Agency (EPA) highlights that households with solar panels can cut their carbon emissions by 3 to 4 tons yearly, akin to planting 100 trees, showcasing the significant environmental and health benefits of moving towards renewable energy sources.
Increased Home Value
A study by the U.S. Department of Energy found that homes with solar panels sold for an average of $15,000 more than comparable homes without solar panels. Solar panels are a visible symbol of a homeowner’s commitment to renewable energy and environmental sustainability. This can be a positive marketing point for real estate agents to promote the home’s value to potential buyers who are looking for eco-friendly homes.
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How Much Do Solar Panels Cost?
The average cost to install solar panels is about $16,000. The low end of installing solar panels starts at about $3,000 and can get as expensive as $40,000, depending on what system you choose. Let’s not forget those federal tax incentives we talked about in the solar panel advantages, which usually keep solar panels around $10,00 after application. Of course, other costs go into installing solar panels, such as upkeep, inverters, or other additional equipment.
Prices vary based on home size, panel type, and installation, with homeowners typically spending $15,000 to $25,000 after tax incentives. This investment covers panels, inverters, and installation. Despite the initial cost, solar panels offer long-term electricity bill savings, enhance home value, and support sustainability. Weighing these immediate and future benefits helps determine their worth for your home.
How much money will you save with solar panels?
Switching to solar can save you up to $40,000 over 25 years, which seems like a long time but is truly a lot of money. Most U.S. solar consumers save around $1,500 per year on their energy costs, but it can be much more depending on the size and efficiency of their system.
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Why Solar Panels Are Not Worth It
While the benefits of solar panels are significant, it’s important to acknowledge the challenges and drawbacks. One of the primary concerns is the initial cost. Despite the long-term savings, the upfront expense for installation can be substantial, potentially making it a less feasible option for some homeowners.
Additionally, not every home is a suitable candidate for solar panels. If you reside in an apartment, have a small or aging roof, or face other structural limitations, installing solar panels might not be possible. These factors are crucial in evaluating whether solar is a viable and worthwhile option for you. It’s essential to consider both the benefits and the limitations of solar energy to make an informed decision that aligns with your living situation and financial capabilities.
When are solar panels not worth it?
- High upfront costs
- Roof Constraints
- Low Electricity Rates
High Upfront Costs
The upfront cost of installing a solar panel system, ranging from $10,000 for a 5-kilowatt system to $30,000 for a 10-kilowatt system, according to EnergySage, poses a significant barrier for homeowners. These costs fluctuate based on system size, equipment quality, and local labor rates. While the long-term savings are substantial, the initial outlay may be daunting without access to financing or the ability to utilize tax incentives and rebates, potentially taking years to offset the initial investment.
Roof Constraints
Solar panels may not be a viable investment if your roof is shaded or lacks the space for a system large enough to meet your energy needs. Direct sunlight is crucial for electricity generation, making roofs overshadowed by trees or structures poor candidates for solar installation. Furthermore, the feasibility of solar panels also hinges on having a roof spacious enough to host a system sized appropriately for your home’s energy consumption, size, and local climate, potentially making it not worth the investment under these conditions.
Low Electricity Rates
When electricity rates are low due to factors like low fuel costs or government subsidies, the financial savings generated by solar panels may not justify the initial investment. In such areas, the reduced cost savings on electricity bills may not sufficiently offset the upfront costs of buying and installing a solar panel system, making it less financially appealing compared to regions with higher electricity rates.
Is Solar Installation Right For Your Home?
Some homes benefit more from installing solar panels than others, which mostly has to do with position. If you are on a piece of property with trees blocking your roof or tall buildings shading your house, solar panels might not be for you. Solar panels also work better on southern-facing roofs versus those facing east and west.
Related Post: Do Solar Panels Work on Cloudy Days?
Is Solar Worth It? FAQ
Q: Can I install my solar panels?
A: Yes, it is possible to install solar panels on your home yourself. While it is not an easy process, and you will have to know how to assemble prefabricated parts and be on your roof, you can feasibly do it yourself.
Q: Do solar panels increase property taxes?
A: Yes, going solar can increase the value of your home, but depending on the state, you would have to check and see if it increases the taxes.
Q: Can a house run on solar panels alone?
A: Yes, it is possible to run your house on solar alone. With that being said, it would require a rather sophisticated solar system with a hefty financial investment involved.
Q: How many years do solar panels last?
A: The average solar panel system is built to last 25 years. That’s why it is important to research companies before you install your solar panels to ensure they are quality.
Q: How long do solar panels take to pay for themselves?
A: On average, it takes homeowners from six to ten years for their solar panels to be paid back. That range can change drastically as countless factors influence the payback period.
Do you Need Cheaper Electricity?
If you’ve taken the time to understand the information on your bill and discovered you’re paying more than you’d like for your electricity, have you looked around for a cheaper deal? The Energy Professor has a wealth of information on ways to save on your utilities, including details of top deals that could significantly reduce your monthly or quarterly electricity bills.
We hope you found this article helpful! If you are looking for ways to increase energy efficiency and sustainability in your home, be sure to take a look at all of the latest renewable energy options in your area. The Energy Professor helps residential and small business owners find qualified energy suppliers in New York, New Jersey, Pennsylvania, Texas, Ohio, Maryland, Illinois, and Massachusetts