There a couple of important factors you need to take under advisement to decide whether solar panels are truly worth the money for you. Read on to learn about these factors.
What Do You Pay for Your Electricity?
How much you will be saving by installing solar panels is largely dependent on your current electricity bill. You pay your utility company for each kWh (kilowatt-hour) of electricity you use, and the rate at which you pay depends on where you reside. You can pay as little as 9 cents/ kWh in some parts of the country. In other areas, you will be paying 25 cents or much more.
When going solar, you install a small power plant on the roof of your home as a replacement for the power plant where your utility is supplied with electricity. What this means is that those house owners who were paying high rates of electricity from their utility will be saving the most when they make the transition to home solar power.
If you are uncertain as to how much solar power can save you, you ought to begin by making use of an online solar calculator.
How Do You Pay for Your Solar Panel System?
Whether you decide to lease or buy your solar panels will have an instrumental effect on your system’s lasting value. If you have sufficient money to buy in cash, you will be saving more than with any other option available. Your total savings can still be in several thousand, even if you go for a solar loan with a $0 down payment. While PPAs ( power purchase agreements) and solar leases provide a maintenance-free option and do not require any cash as a down payment, there is a trade-off involved: your overall savings will generally be just 10-30 % of your electricity bill.
What Is the Cost of the Solar Panel System?
Depending on the equipment you install and the solar company you pick, installation costs will vary considerably. Although installing cheap solar panels might seem like an easy way to save cash, your overall 25-year savings will be greater if you make an investment in top-quality equipment. It is in your best interest to take out some time to assess all of your equipment options and find the ideal combination of quality and price for your house.
Furthermore, do remember to research the solar incentives available where you reside. These can help slash down your net cost by around 50 %. The federal government, along with several municipalities and states, have extra financial incentives for their inhabitants as well. Moreover, some of the utilities also offer cash rebates to their consumers in order to support them to go solar.
The aforementioned factors, such as rates of electricity, financing method, and the cost of a solar panel system, play a pivotal role in determining whether investing in solar panels is a viable investment for you.