How Much Energy and Money Does Solar Panel Installation Really Save?

Posted August 18, 2020 by in Lifestyle
solar panels

Did you know that the cost of solar panels has dropped nearly 50% in the last six years alone? Solar panels have long been a reliable, green, renewable source of energy for the planet. However, in past years it was not a financially viable solution. 

Installation and excess power storage costs were simply too high for the average business to maintain. This has now changed. 

How much can solar power save you? How much is the initial investment for solar panel installation? Why not find the answers to these questions by reading our article below. 

How Much Can I Save?

Let us first set the record straight. Solar power does require an initial investment of money. This will cover the cost of equipment and installation. However, you will recoup this in the years that follow.

Experts estimate that solar panels can offset an average of 94% of an average American household’s energy bill. 

If you would like to know how much you can save, you can make use of Google’s Project Sunroof initiative. This online calculator will help you to calculate just how much your house could benefit from solar power. 

Of course, there are many factors that will affect how much you can save by using solar power. Reputable solar panel companies will help you find the best equipment for your circumstances. However, what are some of these factors?

Current Cost of Electricity

When calculating how much you can save by installing solar power, it is important to consider your current electricity costs. The more that you are paying for your electricity consumption, the more that you will save by switching to solar power. 

Of course, if you pay a static fee for your electricity connection, solar power will not help you to reduce this. However, as your mains electricity usage decreases you will see significant savings.

In Oregon for example, electricity costs 13 cents per kilowatt. For each kilowatt of solar energy your panels produce, 13 cents will be recouped. 

How Much Sunlight Does Your House Get?

When considering how much you can save, it is important to factor in how much solar power your location can produce. Some states such as California and Arizona have very high sunlight levels and thus can produce a large amount of solar power.

Your home’s location, the angle of your roof, and even shading from trees and other close-by objects can limit the amount of solar power that your house can produce.

If remediation work would increase the level of sunlight to your house, you should arrange for this before a company performs a solar power assessment. 

What Will the Initial Cost Be?

Over time the savings you make from solar power will accrue and be greater than the initial investment cost. However, likely you will need to know how much this initial cost will be. 

First, you should calculate the size of the system that you will need. You can calculate this by looking at how much energy you currently use. You can learn this from your current electricity bill. 

The cost of your solar power system will likely fall into the broad range of $10-25,000 dollars. It should be remembered that these systems are designed to last up to 20 years or longer.

Solar power is becoming more popular and so it would be good to obtain quotes from a number of companies before making a final decision. 

Will the State Provide Support?

Likely one of the reasons that you are choosing solar power is that it is a renewable energy source. Many states will offer a range of incentives to you for investing in green renewable energy. 

The exact incentives will change from location to location. In some states, you may be able to benefit from direct cashback. In other places, the state may offer you exemption from tax or expedited processing of permits. 

In states where you can benefit from tax exemption, this is generally in the form of a tax reduction. You will likely not be able to retroactively receive cash from previous tax years. However, you may be able to reduce the cost of your investment from your next tax bill.

How Will International Trade Politics Affect This Decision?

Unfortunately, international trade does affect the price and availability of certain solar power systems. For instance, in 2018 the US placed trade tariffs on certain brands of solar cells and panels.

This has resulted in a general hike in the price of solar power systems that are import items. These tariffs will slowly drop each year and should cease to have any effect after 2022.

In view of unpredictable international politics, it may be beneficial to arrange for this installation sooner rather than later. Although the cost of materials for this type of system is constantly dropping, future tariff wars could cause the overall price to rise. 

Other Payment Options

If you do not own your home or do not want to pay for and own the installation, you can choose to lease the solar power system. 

The initial cost will be lower, however, you should remember that you will never own the system. This means that it will not increase the value of your house and you may not be eligible for state financial support.

Everything You Want to Know About Solar Panel Installation and More

If you are looking to make an investment that will save you money, increase the value of your property, and reduce your carbon footprint, then solar power is for you. 

Solar panel installation is now cheaper and easier than ever before. Why not check out how it can benefit you. 

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