Solar panels and solar panel systems will save you money and generate a return on your investment in a short time. Increasing property values, reducing utility costs, and the federal tax credit alleviate the initial costs of installing solar panels. The short answer is yes, solar panels save money. In addition to helping the environment by reducing greenhouse gas emissions, solar panels allow you to keep more money in your bank account each month.
You save by using less electricity, a savings that kicks in once you've reduced your electricity bills enough to recoup the cost of installation. You're also likely to make more money when you sell your house. A payback period is the amount of time it takes to recoup your initial investment. Solar panels can help you save enough money on energy bills over time to offset upfront costs.
How much you save each month depends on the size of your solar system, your home's energy consumption, and other factors. One of the biggest advantages of installing residential solar panels is a 30% federal tax credit on the total cost of a system. Unfortunately, solar energy is a little more complicated than some solar energy companies want you to believe. To figure out how much money you could save each month with solar panels, first take a look at your electricity bill to see how much electricity your home uses on average.
Thanks to a policy called net metering, which is available in most states, the renewable energy your solar panels produce that you don't use immediately is sent to the grid in exchange for credits on your electricity bill. Solar panels generate their own energy and can therefore largely offset your monthly electricity bill, if not eliminate it. Community solar offers many of the benefits of rooftop solar, but there are no upfront costs and less commitment is required. Even if it is found that the cost of solar energy is slightly more expensive than that of electricity purchased from a utility company, homeowners may want to install solar energy to avoid future potential fluctuations in energy costs, or they may simply want to look beyond their motivations personal financial and use solar energy for vivid green.
This allows you to extract energy from the grid during the night (when the sun is not shining and powers your solar panels) but not to pay any extra money, as long as you recover the same amount or less than what you provided to the grid. Once a solar panel installation is fully functional, you may see savings on next month's energy bill. Since the main way solar saves you money is to reduce or eliminate your monthly electricity bill, the amount you pay for electricity today greatly influences the level of savings you can get from using solar energy. When it comes to using solar panels, it's usually better to be closer to the equator, but there are other factors to consider.
In those states, if the weather is acceptable, installing solar panels can save even more money each year and allow the homeowner to see a much quicker return on their investment. Then compare solar panels as you would with other expensive items, such as a car or a TV, says Vikram Aggarwal, CEO of solar market EnergySage.