Did you know that the solar market grew 29.3 percent in 2017?
There’s a reason that more people are opting for solar power. Solar panels help the environment, they’re a unique way to get power, and you can save money in the long run.
Keep reading to learn how you too can take advantage of solar savings like other people are already doing.
Solar Savings: Can I Save by Switching to Solar Panels?
Switching to solar sounds great because after all, you’re getting your free power from the sun. I’m sure by now you’ve heard about solar companies like https://PoweredPortableSolar.com, everywhere from the news to magazines and even billboards.
The question is usually “Will I truly save money by installing solar?” People are curious because electricity rates seem to keep rising. There are a few things you want to look at and consider before setting up your solar install to figure out if you will save money or not.
Electric Bill
First thing you want to do is pull up your statements from your electric company. Usually, the rule of thumb when installing solar is that the higher your bill is the more money you will save by making the switch. If your bill is only $50 a month then it might not be worth it because of the upfront cost of installing your system.
Now if your bill is higher, let’s say $300-$500 monthly, then you will be even with what you paid to have your system installed much sooner than if you normally have a $50 bill. This is because solar panels generate their own power which means they offset a huge chunk of your monthly electricity bill if not all of it.
How Is the Sunlight Exposure in Your Home?
Something you want to take into consideration is how much sunlight your home sees on a daily basis? Are you in a location that you have quite a few hours of the sun directly hitting your home? Are you in an area with a ton of trees that are covering your home and keeping it in the shade?
If your answer was the latter then maybe going solar isn’t the best option for you. When you install solar panels you need the sun to be able to power them and it’s more difficult to do it through any trees that are in the way.
Upfront Costs
You want to take into consideration how much it’s going to cost you to install solar in your home. This is the largest expense when going solar. The Center for Sustainable Energy mentions that the average cost for a 5-kW residential solar system is between $15,000-$25,000.
Calling installers in your area and figuring out your upfront costs will allow you to see how many months of not paying your current electric bill would it take to break even with your upfront installation costs.
Like we mentioned earlier if it’s only you in your home and your bill is $50 a month then it will take a long time to break even if you make a $15,000 investment.
Net Metering
This is a great policy that will benefit those with a solar system. This policy states that if your solar panels produced extra energy that you didn’t use it sends it to the grid in exchange for credits on your electric bill.
Basically, this means that when the sun isn’t shining either because it’s nighttime or a rainy day then you can draw energy from the grid and not pay anything extra as long as you take back the same amount that was taken from you originally.
Keep in mind that not every state has the net metering policy in place. You will want to double check to see if your state has this available when calculating if you can save money with a solar install.
Property Value
Another place that you will see a financial benefit to installing solar is your property value. Even if you don’t plan on selling your home in the near future or years down the road, your property value will go up. This is good news in case you have to sell for some reason unexpectedly.
The U.S. Department of Energy estimates that your property value will increase $20 for every $1 you’re saving on utilities annually. Doing the math this means that with a 5 kW unit installed you can see your property increase by a minimum of $20,000.
Tax Incentives
You have to take into consideration the tax savings that installing your solar will bring. Some states offer their own incentives on top of the government’s federal tax credit. Currently, the tax credit allows taxpayers to claim 30% of installation costs for systems installed by December 31, 2019.
The tax incentives might be enough to say “YES” to installing solar power in your home. Some homeowners have been able to save up to 50% off their costs thanks to tax incentives and their state’s rebates.
Solar Time
Now that you have learned quite a bit about different ways that you will be able to enjoy solar savings by installing solar power in your home it’s time to gather potential installers in your area. If you live in an area that you have high electric rates and you have great sun exposure than solar panels will save you money in the long run.
Research is your best friend before choosing a company and signing on the dotted line. Ask friends and family for referrals and make sure to understand what you will be paying upfront.
Make sure to check out our home and garden section for more ideas and tips for your house.
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