The cost of solar panels has significantly reduced in the last ten years. At the same time, the cost of electricity has increased considerably. Due to this reason, a lot of homeowners are preferring to go solar. Considering the 26% federal tax credit, and incentives further reduce the cost of solar panel installation.
So, let us understand how solar panels can lower your utility expense.
Are Solar Panels Worth Buying?
If you are confused about whether to buy a solar panel system or not, you should first find out how much solar panels cost. The answer to whether or not solar panels are worth an investment depends on several factors. These includes:
- The location,
- The amount of roof space,
- Whether your roof is with or without shade,
- How much electricity do you use?
- How much does your local utility provider charge you for electricity?
- What prices are offered by a local solar firm
Based on these factors, you will determine the benefits that you can expect from its installation.
Should You Go Solar?
To decide whether you should go solar or not depends on the calculation of the investment return and payback period for your home. The payback period is the time needed for the electricity savings equals the amount you have paid for the setup of a solar panel system.
The average period of payback for any residential solar system is around seven years. The seven years’ payback period is equivalent to an ROI (return on investment) of approx. 14%.
However, this statistic will vary between different states and regions within states. Besides reducing the utility bills, solar panel installation also enhances your house’s worth. This is another important benefit of going solar.
How to find out whether you save or spend on solar panels investment?
Review the electric bill
If you have a higher monthly electricity bill, then you should switch to solar panels. Taking into account that the cost of electricity rates increases every year, you would benefit by making a transition.
Evaluate sunlight exposure
If your home is located at a place where you get an ample amount of sunlight, then you would surely benefit from your solar panel installation. Consider the orientation of your home toward the sun, the roof type, and the amount of shade. All of this can impact the output of a solar system.
Estimate the cost of residential solar panels installation
The major cost associated with solar panels lies in the purchase of the equipment and their installation. Minimum long-term expenditure can compensate for the upfront costs. In the case of this system, they do not incur repair and maintenance costs that can easily last for 20 to 25 years.
As it is quite clear that there several factors that are important to consider when determining whether or not solar panels are worth the investment. There are solar calculators available online that help you get precise estimates custom-made to suit the energy consumption of your home. In this way, you can power your home with natural energy while saving on your utility bills.