Solar Panel Installation : Are Solar Panels Worth It?

Are Solar Panels Worth It for Your Home?

The real cost of solar panels and whether they will save you money is determined by several key factors.

Before you make the switch, consider how your electric bill, location, and incentives will affect your wallet over time.

Ultimately, whether solar panels are worthwhile must be determined on a case-by-case and home-by-home basis.

Put simply; solar power is a better choice for some people than for others.

The question is, how do you know if you're a good fit for solar panels?

What Is the Cost of Solar Panels?

The first thing to keep in mind is that installing a residential solar system will always be costly.

True, saving money on electricity bills can help offset that startup cost, and you may be eligible for some incentives to help reduce the cost of solar panels.

But, in the end, there's no escaping the fact that installing a home solar system can be costly.

How much does it cost?

The total cost of your solar energy system will be determined by a variety of factors, including the type of solar panels you select, the number of panels needed for your home, and the specific Solar Panel Installation company you hire.

According to research solar panels' average cost in 2021 ranges between $16,200 and $21,400.

It's also worth noting that this represents a significant decrease in the cost of solar panels.

Solar installation is becoming more affordable, even if the initial investment is still somewhat intimidating.

Subsidizing the Cost of Solar Panels

Another thing to keep in mind is that many governments have announced programs to provide financial incentives for solar installation in the last decade or so.

Additional credits differ depending on location.

Depending on your state, you may be eligible for additional benefits such as cashback, property tax exemption, waived fees, and prompt permits.

Homeowners with solar panels in some states can sell excess power to their local utility companies.

Explore the database of state incentives for renewables and efficiency to find credits available in your state.

However, benefits are not guaranteed to last.

As solar becomes more affordable, state and city governments and utilities continue to reduce the types of incentives available.

Incentives may disappear, and it may not be worthwhile to wait for too long.

Certified solar companies can usually assist you in identifying and applying for any programs for which you are eligible.

What Is the Lifespan of Solar Panels?

When considering the initial investment in solar panels, another factor to consider is system lifespan.

How long do solar panels last after you buy them? Will they last long enough to give you your money's worth?

Again, the answer will vary depending on the type of solar panels you select.

Most of the best solar panels come with relatively strict warranties, ensuring that your system will last at least two decades.

On the other hand, most residential solar systems have a lifespan of 20 to 30 years and need only the most basic upkeep and maintenance.

How Much Money Will Solar Panels Save You?

The question of a solar power system's return on investment is related to the question of panel lifespan.

How much power can a household solar system produce? How much money will you save?

Will the monthly savings on your electric bill mean that your solar system "pays for itself" after a few years?

The sum of money you save on monthly power bills depends on your solar panels' effectiveness and capacity and your home's energy usage habits.

Remember that your savings will be higher if you live in a place with higher electricity costs; conversely, if you live in a place with lower power rates, the money you save from installing solar panels may be relatively small.

How Do Solar Panels Help You Save Money?

Annual electricity bills can run into thousands of dollars.

The annual energy expenditure per person, including transportation and residential energy, is around $3,052.

As soon as solar panels are installed, these costs can be reduced or eliminated.

They also provide long-term savings because capturing the power of the sun is essentially free.

If your monthly average power bill is high and you live in a high-energy-rate area, installing solar panels in your home may be worthwhile while the tax break is still in effect.

It is not only beneficial to your pocket, but it is also beneficial to the environment.

Here are a few reasons why you should consider investing in solar panels:

• The cost of energy is not decreasing.

• The cost of installing solar panels has decreased as prices have decreased.

• Solar Panel Installation provides long-term subsidy benefits.

• Reduce energy costs on your energy bills to save money on your pension.

• Solar panels have a long lifespan and require little maintenance.

Solar panels increase the resale value of your home vastly.

Many home buyers know what it means to have solar panels on their roof - particularly since the system is already in place and they did not have to make the initial investment and installation.

According to research, the average homeowner sees a $5,911 increment in resale value per installed kilowatt.

That means that installing a 3.1-kilowatt system could increase the resale value of your home by nearly $18,000.

Solar panels also help extend the life of a roof by shielding it from the elements such as rain, snow, and debris.

They make the property more energy-efficient in the summer since the solar energy is absorbed by the panels rather than directly hitting the roof, keeping the house temperature lower.

Should you put solar panels on your house?

Many people have already installed solar panels to generate their own electricity, and lower prices and new incentive programs continue to intrigue consumer interest.

However, before deciding to install rooftop panels, homeowners should consider several factors.

Here are things to think about before signing a contract:

• Is the house energy efficient? - installing solar panels on a home with leaky air ducts, faulty wiring, 70-year-old windows, or other ineffective characteristics makes no sense.

Repairs and upgrades are frequently less costly and more cost-effective than adding solar.

In addition, an energy-efficient home will require fewer solar panels to cover a sizable percentage of its energy needs.

• Obtain several estimates - This is sound advice whether you're looking for new countertops, solar panels, or any other home improvement.

Knowing how various companies would install the equipment, how much they estimate in electricity cost savings, and what warranties they can save homeowners a lot of money.

Predictions from installation companies will also allow consumers to determine whether the companies understand the needs of the homeowners.

Installation companies should size a rooftop system based on how much electricity a specific family uses, rather than simply installing as many solar panels as can fit on a roof.

• To lease or to buy? - Leases with little or no down payment are becoming popular options for homeowners who want to produce their own electric power but don't want to pay a lot of money upfront.

Leases have the advantage of another company owning and maintaining the panels, but the disadvantage is that customers will save less money over time by making monthly lease payments.

In addition, homeowners should take into consideration leases that increase in price over time.

Companies that sell rather than lease can frequently offer loans with low or no down payment, similar to lease products.

Comparing different offers can assist homeowners in finding the best offer.

• Is the house going to be sold soon? - The calculation of the value that solar adds to home has sparked debate.

Leased panels do not bring value to a home's resale since they're not a permanent fixture.

Anyone purchasing that home will have to qualify to take over the lease, or the family selling the home may have to pay the penalty for breaking the lease early.

• Trees reduce efficiency and savings- Solar panels require direct sunlight, so homes that are heavily shaded by trees are not suitable candidates.

While some homeowners choose to cut down trees to accommodate solar panels, homeowners should contemplate whether the cooling shade provided by the trees outweighs the benefits of solar panels.

In some cases, where a home is only partially shaded, panels can be installed to avoid shadows, or additional panels can be added to compensate for lost production.

• What is the roof's condition? - If the roof is nearing the end of its lifespan, new shingles should be installed before or during the solar panel installation.

If the roof needs to be replaced in a few years, removing the solar panels to make way for that work can cost around $2,000 or more.

It is therefore prudent to postpone installing the panels or proceeding with the new shingles.

• Can your Homeowners Association prevent you from doing so? - Homeowners associations can limit the visual aspects of solar installations, but they cannot stop homeowners from installing panels at all.

Ideal Candidates for Solar Panels

Solar panels are a better investment for homeowners who meet the following requirements:

• Adequate exposure to sunlight- If you live in a country region that receives adequate sun all year, you'll definitely get more power output from your solar panels.

• Roof space- An efficient solar panel will require a large amount of surface area on your roof that is not obstructed by skylights, furnaces, or other fittings.

You can still install a solar panel on a smaller roof, but you'll have to find the most efficient solar panels (that are often more costly) to optimize your limited space.

• High utility bills- The sum of money you save by going solar is directly proportional to the amount of money you spend each month on electricity.

So, if you live in an area where the cost of electricity is high, going solar will allow you to save more money.

Who Is Not an Ideal Candidate for Solar Panels?

• Homes with little sun exposure- If you understand how solar panels work, it should come as no surprise that darker areas benefit less from this renewable energy source.

In areas with a lot of cloud cover or limited solar exposure for long periods of the year, the switch to solar may not be as beneficial.

• Houses with too much shade- Likewise, if your roof is shaded for lengthy periods of the day (for instance, if your house is in the shadow of a big structure or many dense trees), your solar panels may not get enough sun exposure to produce a solid Return on Investment.

• You pay less for electricity- If your electricity bills are already low, installing a residential solar system will result in more moderate and measured savings.

• You don't have the proper type of roof- Some types of roofs are simply unsuitable for solar power installation.

Older or historic homes with certain types of tiled roofs and homes with larger skylights may not be ideal candidates for solar energy.

How long does it take for solar panels to pay for themselves?

Solar panels are usually marketed as a way to save money on electricity and, in some cases, to make money.

This is because you can be compensated for the electricity they generate, but you do not use it.

The length of time it takes for your solar panels to pay for themselves, as well as whether you can profit from them, will be determined by the following factors:

• The cost of your solar Panels;

• The amount of the energy produced you're able to consume

• Whether you're paid for electricity exported.

A more costly solar panel will have to be balanced against how much money you can save by using the renewable energy it produces (rather than buying power from your energy company), as well as how much money you can earn by selling any excess.

Most companies promote solar panels as a profitable investment.

However, traditional options (such as savings and investments) and purchasing and installing a solar panel differ significantly.

If you are already receiving Feed-In Tariff payments, they are guaranteed for 20 to 25 years (depending on when you had the panels installed).

The price you are paid per kWh changes every year with the Retail Prices Index (RPI), and any money you make is tax-free.

The best way to pay for Solar Panel Installation is upfront and in full.

If you don't have the money to pay in full right away, you could consider taking out a loan or refinancing.

You will have to pay interest on any money borrowed, and loan repayments may exceed the solar panels' returns, so do your estimations correctly.

So, Are Solar Panels Worth It?

The fact of the matter for homeowners is that solar energy is one of the most effective ways to reduce your reliance on traditional utility companies.

And for many homeowners, the return on investment in solar power will be well worth it.

However, the initial investment can be prohibitively expensive, and not every homeowner will get the value for their money.

When deciding whether solar panels are a good investment for your home, consider the cost, warranty, lifespan, and overall performance, all while seeking advice from qualified solar professionals.

There are several steps you can take to evaluate the pros and cons of solar energy and make an informed decision.

One alternative is to contact a Solar Panel Installation company, which can evaluate your roof and its orientation in respect to the sun and provide you with a rough estimate of how much money you could save by installing solar panels.

Credible installers can also explain the various types of solar panels available and recommend the technology you'll need to achieve a substantial solar power Return on investment for your home.

Before you reach out to a solar installer, most solar companies provide online calculators that you can use to estimate your monthly energy savings.

However, these calculators only provide a rough estimate and should be used with caution, but they can provide a real sense of whether solar panels are worth it for your home.

Even if you decide against residential solar affordability or viability, you can still gain from renewable energy.

Consider community solar, a solar project or purchasing program in which consumers benefit from offsite energy generation.

Key Takeaways

• Purchasing solar panels can provide considerable financial and environmental benefits; however, going solar necessitates a time investment to fully assess your potential power production, payment plans, and upfront and long-term cost-saving opportunities.

• There are considerable upfront costs associated with solar panels installation, but it should more than pay for itself in the longer term.

• If the initial costs are prohibitively high, solar financing may be an alternative.

• If a residential solar system is not an option for you, community solar provides an alternative way to support renewables while saving money on your utility bill.