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If you’ve been pondering the idea of installing solar panels on your home, you might be worried about the costs. Studies show that the average whole-home solar system costs between $15,000 and $25,000.
Is it worth that much money? How much money can you really save by investing in solar power for your home?
We’re here to provide some answers.
Aside from all the environmental benefits of solar panels, they can also help you save and earn a substantial amount of money. Keep reading to learn about all of the ways you can save on solar panels.
Energy Savings
First, let’s take a look at how installing solar panels will help reduce or eliminate your electricity bill. If you invest in a whole-home solar system powerful enough to power every electronic device and appliance in your house, say goodbye to your energy bill.
For most homeowners, this means saving over $100 a month. It may not seem like a lot, but let’s extrapolate that out over 10 years.
That’s a savings of over $12,000. Get a more comprehensive assessment of your energy savings at Blue Raven.
Federal Tax Credits
Tax write-offs are some of the most important benefits of solar panels today. Through 2022, you can claim up to 26% of your solar installation costs on your federal taxes.
Using the information above, let’s say you spend $20,000 installing solar panels on your home (and all related equipment). Uncle Sam will pay you back up to $5,200. Just make sure you keep your receipts and document your costs.
State Incentive Programs
After you install solar panels, you’ll become eligible for a number of different state incentive programs. These vary from state to state. However, some of the most common incentives include:
- Net metering
- Property tax exemptions
- SRECs (solar renewable energy certificates)
- State-sponsored low-interest financing for solar systems
Net metering programs allow you to sell unused energy you create back to power companies. In return, you’ll receive power credits that you can use to power your home on cloudy days or periods of low sunlight. Even if you need to use city/county power, it won’t cost you anything.
SRECs pay you a certain amount simply for creating your own energy. The state will reward you with cash based on how much energy you create through your solar panels.
Increased Home Equity
Finally installing solar panels on your home will help you improve the value of your house. In some states, your home will gain 4.1% equity with a solar installation. If your home was already worth $400,000, it will be worth $416,400.
As noted above, many states won’t penalize you in your property taxes for this added equity. You won’t have to pay more for adding value to your home via solar.
Are You Thinking About Installing Solar Panels?
There are incredible benefits to installing solar panels on your home. As you can see, you’ll quickly earn back the money you spend through state incentives, federal tax credits, and energy savings. Just make sure you work with the best companies to get the best solar panels for your home.
And if you’re looking for more green energy tips or homeowner advice, you’re in the right place. Check out some of our other blog articles to find all the answers to your problems.