If you rely on traditional electricity sources for your energy needs, you must have noticed the upward surge in your electric bills in recent years. And with dwindling reserves, the costs are likely to rise, not to mention the ecological costs of fossil fuels, which is perhaps the most familiar energy source. All this makes opting for solar energy for your electricity needs a clear choice. However, the installation of solar energy panels can prove to be an expensive affair. And while you will save a great deal of money in the long run, you need sufficient financial resources to pay for the installation and system. According to the Center for Sustainable Energy, the average cost of such an exercise can range from $15000 to $25000. The following information should be helpful:
Your Electricity Bill
Captain Green Solar Panels Perth advise that solar panels will reduce your electricity bills to a great extent if not cut it down entirely. Solar panels generate power, and the more energy you use the greater the need for solar panels. If your solar panels are generating enough energy so they can be used as your only source on energy, it will transfer to savings on your energy bill. Solar panels generate power, and the more energy you use that can be sourced from the panels, the more are your savings. However, keep in mind that electricity usage and rates are volatile and vary. This variability is a result of the fluctuating costs of the electricity provider. The potential savings is determined by the energy consumption of your household and electricity rates. The location dramatically influences such rates. The average cost of electricity per kilowatt-hour was 13 cents in the U.S. as a whole 2019 as per U.S. Energy Information Administration data.
Assess The Sunlight Exposure At The Location
Places that get more sunlight mean potentially more significant savings due to the enhanced amounts of produced energy. Some states like California and Arizona experience a higher number of sunlight hours. Another thing to factor in is your home’s orientation regarding the sun, the amount of shade, and the type of roof. All this serves to determine the energy output of your solar panels. You can use the Sunroof energy savings calculator from Google, which will help you. You simply have to input your home location for this.
Make Estimates Of Solar Panel Costs
The major expenditure involved in switching to solar energy is the cost of buying and installing solar panels in your home. However, the amount you stand to save in the term will help you make up for the initial investment. The vast majority of solar installations require minimal maintenance and have a service lifespan of twenty or more years. Further, the amount of electricity produced by a system is consistent for most of its lifespan.
Installing an average 5kW solar energy producing system is likely to cost you $3-5 per watt resulting in an overall cost of $15k-$25k minus tax credits and incentives. Some solar panel providers and installers offer attractive rebates. You can click here to know more about such a program provided by a Seattle based company. Ideally, you should ask for quotes from 3-5 such companies once you have determined your energy needs.
Watch Out For Incentives
The U.S. government offers excellent incentives to citizens who opt for solar panels as their households’ energy source. This includes a residential tax credit provided by the federal government. By virtue of this incentive, taxpayers can claim as much as 26% of their installation costs if they install the system by the end of this year. As per present stipulations, the credit will dwindle to 22% in the coming year, i.e., 2021, when the incentive is slated to end. However, note that you won’t get refunds as the benefit is non-refundable. You can only reduce or eliminate the amount of money you must pay as taxes.
There are additional incentives that are offered by the states. Such incentives include exemption from property tax, cashback, expedited permits, and waived fees. Besides, some states let homeowners sell their excess energy to power companies. It is essential to act fast as states and cities are cutting down on the benefits with the increased affordability of solar panels and their installation.
Solar Panel Expenditure
Suppose you want to assess whether an investment in solar panels is worth it. In that case, you need to scrutinize the savings estimates throughout your solar panel’s life. As of this year’s August, installed solar panels cost $3.08 per watt. If your household installs a 6kW system, that would mean an expenditure of $18,000.
As electricity rates rise with dwindling fossil fuels, it makes logical sense to switch to solar energy. Not only is it an ecological necessity, but it also lets you save money. Even if you are not going to stay in your home for your solar system’s expected 25 years lifespan, it adds considerable value to your property. That makes the decision wise with all the savings and investment returns. See you on the solar side!