According to the SEIA, the average cost of installing solar has decreased by around $20,000 since 2010.
Solar power is a sustainable and pollution-free means of power generation with the potential to save homeowners thousands on their energy bills.
Are you ready to enter the age of solar power and start saving on your electricity costs? If so, your first question is likely, ‘How much do you save with solar panels?’
Keep reading to find out more.
The Relationship Between Solar Costs and Savings
Buying electricity from a power company is expensive, but it doesn’t involve the high upfront costs of a solar system. An off-grid solar setup means you’ll never pay an electricity bill again.
Yet, you’ll need to pay out between $13,000 and $17,000 in materials and installation costs first, depending on where you live.
You can save on your solar installation by taking advantage of the federal tax incentive for solar power. This benefit allows you to deduct 26% of the total costs involved in setting up solar panels for home use from your annual taxes.
Many states offer additional solar panel savings that can considerably reduce your initial costs, too.
How Much Does Solar Save You Monthly?
You’ll likely need to apply for a solar loan to pay these expenses, which means you can add interest charges to the final cost of going solar.
Ultimately, you’ll end up with a monthly amount you must pay toward your solar loan instead of paying your electricity bill.
The difference between these two amounts should tell you how much you stand to save, right? Wrong!
Once you’ve paid off your loan, you’ll still have the use of your solar panels until they reach the end of their twenty-year lifespan. When you’re paying a power company for electricity, there’s no end in sight.
How Much Do You Save With Solar Panels on the Grid
If you can’t afford to pay for a solar installation, there are other ways to enjoy savings from solar panels. You can opt for a power purchase agreement.
These arrangements, mean the power company gets your home ready for solar electricity generation without any upfront costs to you. They’ll pay all the costs associated with placing solar panels on the roof of your home and also take back all the electricity they generate.
They do this by connecting your solar panels to their grid via your home. In return, they sell this electricity back to you at a much cheaper price than usual.
Another system, called net metering, means you pay the costs of setting up solar panels and only use grid power when needed.
During peak production hours, your solar panels feed electricity back into the grid and the power company gives you a credit on your electricity bill in return.
The Most Important Savings From Solar
While you’re mulling over questions like, ‘how much do you save with solar power’, spare a thought for the real savings associated with renewable energy.
Clean energy like solar and wind help decrease the number of carbon emissions created by conventional electricity generation. So, when you install solar power, you’re helping to save humanity from the devastating effects of increasing global warming.
Are you interested to find out more about the things you sometimes wonder about? Browse our House blog for all the latest information on a wide range of topics.
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