Tap to Read ➤

Cost and Benefits of Solar Panels

Lindsey Patterson Jan 13, 2020
If you are interested in investing in solar panels for your home, chances are that you have already taken some time to do your research about the cost and benefits of solar energy and how it would factor into your life. Solar panels are not a one-size-fits-all addition to your home and in some cases they can be fairly costly.

The Cost

The cost to upgrade your home with solar panels can be done in one of three ways: You could pay for your solar panels upfront or with a loan, you could choose to lease your solar panels through a reputable company, or you could buy the power that comes from your solar panels through what is known as a Power Purchase Agreement.
In previous years, most people chose the option to purchase their solar panels upfront. However, this was mostly due to the lack of available leasing or loan options at the time. Over time the process for getting solar panels for your home has improved and you do not have to worry about the costly upfront price of solar panels.
With these improvements, a lot of people have been able to get their solar panels through a lease or a loan, which is easy to do with professional and reputable solar companies.
After choosing whether to purchase or lease your solar panels you will be surprised to find that owning your solar panels helps you save money in the long-term future. For example, the average use of electricity in the United States is currently at about 900 kWh per month and the average cost per kWh is 12 cents.
With that in place, the average monthly electric bill is about $108. Depending on the size of your solar panel array, you could generate anywhere between 300-800 kWh per month, which could save you up to $90 per month on average. Your solar panels could effectively pay for themselves while also helping you save a little more for other things in your life.

Your Location

The location and model of your home is integral for knowing your potential costs as well as how effective the solar panels would be for your home. You will likely want as much sun as possible, but you will need to factor in how much available space you have on your roof as well as the amount of tree cover there might be.
The ideal rooftop will have a large space with only a slight amount of slope with very little tree cover. Hiring a solar panel professional to come out to your home will help you decide the best options for you and your home.

The Benefits

One of the many benefits of going solar for your home is by taking advantage of the many tax incentives available to you on both the federal and state government levels. While not all states offer incentives, the best tax incentive comes from the federal tax credit.
With the federal tax credit you could deduct up to 26% of the solar panel cost from you taxes. This is a great bargain available to all potential buyers.
Additionally, by going solar for your home you will be helping the environment in your area in more ways than you could imagine. Generating electricity is not easy and uses a lot of finite resources which emit dangerous greenhouse gases into the environment.
By using the sun as a renewable resource in generating electricity for your home, you will help lower the need for generating electricity from coal and other fuels.
Solar is a great way to help build a better future for generations to come as well as help you save on rising electricity costs. If you are considering purchasing solar panels for your home, be sure to contact a professional who can help you get started.