The average cost of installing solar panels is somewhere in the region of $16,000 to $20,000. So it’s understandable that the prospect of saving with solar panels might seem ludicrous to some homeowners.
It’s important to remember that one of the main reasons to install solar panels is for saving the environment. Reduced electricity bills are a bonus.
That said, charity begins at home, so keep reading to find out more about the cost-saving benefits of solar power.
Installing Solar Panels Always Saves You Money
When you install solar panels, you will pay less for electricity every month.
With an off-grid solar system, you won’t pay anything for the electricity your PV panels produce. If you opt for net metering, you’ll receive a credit on your electricity bill according to how much power your panels send back into the grid.
A solar lease agreement, or PPA, means you don’t pay for your installation, but you do enjoy buying electricity from the lessor at a much cheaper rate.
Calculating Your Savings Over Time
According to Blue Raven Solar, owning your solar panels allows you to maximize your solar savings, even if you do opt for a net meeting agreement or a PPA.
Most homeowners opt for a solar loan to pay the upfront costs of their solar installation. That means you’ll need to work out your savings according to how long it’s going to take you to pay off the loan.
Most solar loans take between 10 and 15 years to settle. So, instead of paying for electricity, you’re paying for the solar panels that generate it.
Remember, solar panels can last for 20 years or more, which means you’ll still enjoy considerable savings for at least five years of their lifespan.
In this case, it’s easy to work out how much you’ll save with solar power when you multiply your average electricity bill by 5 years.
If you’ve opted for net metering, the same principle applies, except you’ll multiply the difference between your current bill and your pre-solar bill by five years.
It’s easy to see how you’ll save more, sooner, when you own your solar panels, plus you’ll have a tangible asset to show for it. When you pay for electricity, you don’t end up with anything concrete for your cash.
Don’t Forget the Discounts
What’s more, it’s unlikely you’ll ever pay full price for your solar installation, if you act fast.
Currently, you can deduct 26% of the cost of your solar system, including labor, from your annual taxes in that year. This incentive goes down to 22% in 2023, and it disappears after that.
Depending on which state you live in, you could also benefit from discounts on solar equipment, like paying no sales tax.
All these incentives add up to ensure you start enjoying your solar savings, sooner.
Start Calculating Your Solar Savings
Installing solar panels offers savings on electricity, helps reduce carbon emissions, and can also increase the value and appeal of your home.
The best way to find out exactly how much you can save is by getting in touch with an experienced local solar installer. They will visit your home and work with you to ensure your solar panel installation brings you the best benefits.
Are you interested in more money-saving hacks? Browse our blog for the best tips on healthy, cost-effective living.