How Do Solar Panels Save You Money?

Solar panels are an investment, but they can save you money in the long run by lowering your electric bills. The solar savings you experience will depend on a few key factors, such as your energy usage, current electricity rates, available incentives, and solar panel size.

The average solar payback period is six to 12 years, but this varies by area and electricity rates, according to Jamie Haenggi of ADT Solar. To find your specific solar payback period, first figure out the net cost of your system after factoring in any rebates or tax credits. Then, multiply that number by your yearly bill savings to see how long it will take to recoup the initial investment.

Your roof’s shade level and the amount of peak sun hours your location receives also play a role in how fast your system will pay for itself. In general, a larger solar energy system will have a lower payback period than a smaller one.

A major reason homeowners choose do solar panels save money is to reduce their environmental impact. The solar power systems installed in homes generate clean energy that can replace traditional fossil fuel-generated electricity, thereby reducing greenhouse gas emissions and helping to mitigate climate change. However, it is important to note that your solar system will only reduce your impact if you use it as intended.

It is important to install the right-sized system for your home. A trained sales associate can help you understand your home’s energy usage and determine the size of the solar system you need. This will ensure that your system is sized correctly to save you money on your energy bills. In addition to determining the optimal system size, an experienced installer can also assist you in taking advantage of local and federal incentives like rebates and solar tax credits.

Some states and cities offer additional solar benefits, such as solar renewable energy credits (SRECs). These are awarded for every kW of electricity your system produces, regardless of whether it is consumed in your home. This can add up to a few hundred dollars of savings each year, depending on the value of SRECs in your market.

Another way solar can save you money is by increasing the value of your home. This can help you recoup some or all of your investment costs at the time of sale, which is something to keep in mind when considering whether to go solar.

While you can’t predict the exact increase in value, it is expected that your home will appreciate by an average of $25,000 over 25 years. This is why many homeowners choose to invest in solar — it’s an opportunity to do good for the environment and boost your home value simultaneously!