Is it time for you to invest in solar panels for your home? Yes, definitely. Everyone wants to do it, but what’s stopping us from making the call? Well, for one thing, solar panels cost thousands of dollars to install. Depending on the size of your home and how many kilowatt-per-hour you use, you can spend between $15,000 and $25,000 for a 5kW-size system. That’s not exactly the kind of amount the average American can afford.
But that does not mean that you should ignore a SunPower solar panel distributor. Take the time to listen to their pitches because a lot of these companies offer deals and discounts. Aside from that, the government also gives out tax credits and incentives for homeowners who will have solar panels installed. In some cities, solar panels are being subsidized, or you can receive cashback and rebates.
What Kind of System Do You Need?
The total amount of your energy savings will depend on your monthly consumption. To get an idea of your average monthly consumption, take a look at your electricity bill. Collect all 12 bills. Get the total of all 12 months and then divide it by 12. That’s your average monthly total.
A solar panel distributor or installer will determine the right system size for you. That will also depend on your average monthly consumption, as well as the size of the property and the number of occupants. Once you have these details, you can begin computing how much you are going to save by installing solar panels in your home.
How Much Actual Energy Savings Can You Expect?
The average electric bill of an American household is around $120. That means that Americans pay an estimated $1,440 annually for their energy consumption. A 5kW system will cost about $15,000. That sounds expensive, given the fact that you have to pay only $1,500 every month. But here’s the thing: you can get federal cut taxes and incentives for installing solar panels in your home.
With fewer rebates and less cashback, you might have to pay only $10,500 for a 5kW solar panel system. That’s not all. You’ll also be receiving tax incentives, which means that you’ll get a higher tax refund by the end of the fiscal year. You’re looking at a return of almost 50% of the actual amount of the solar panel system. Not a bad deal, right?
Given this data, you can compute on average how much you’re going to save in 25 years. Experts say that solar panels rarely need maintenance and that they can last for more than 20 years without a single hiccup.
Take, for example, New York, where the cost of living is very high. Based on the computation, New Yorkers can save more than $73.41 a month on electricity costs. That’s assuming that your home is still connected to the electric grid and that you’re still using it when the solar panels can’t produce enough energy. But if you’re 100% reliant on the solar panel system, you’ll save more than $120 a month.
In 25 years, that’s $36,000 without adding the rebates, cashback, and tax incentives. That $10,000 initial cost of solar panel installation seems to be worth it. You’re not only saving on a by-month frequency; you’re also be saving 25 years down the line.
Investing in solar panels may sound like a huge amount right now, but think about what this does to the environment. If you aren’t concerned about that (but you must), think about the money that goes down the drain every month. Installing solar panels in your home is a win-win for you and the environment.