There are several good reasons to install solar panels on your home. By reducing your household’s dependence on the electrical grid, you help reduce the consumption of fossil fuels and the amount of harmful emissions released into the atmosphere. You also support an industry that could one day provide renewable, clean energy to the entire world. Of course, this also has the potential to save you a considerable amount of money on your utility bills. How much could you save, and how soon will you start to notice it? These are valid questions, and the answers aren’t as simple as you might think. Read on to learn more about how much you could save by going solar and the factors that influence savings.
Understanding Installation Costs
Although solar power can save you a lot in the long run, it does come with some notable up-front costs. You’ll need to consider the cost of the system itself as well as the labor involved in installing it. How much you’ll spend on a solar panel setup for your home depends a lot on the type of products you choose, where you live, the size of the installation, and the provider handling the work. On average, a 6-kilowatt system can cost between $13,000 and $20,000, with installation included. Adding batteries to store energy for use overnight or during outages can range from a few hundred dollars to more than $10,000, depending on your needs. However, it’s important to note that battery storage can help you save even more money over the lifespan of your system.
How Much Will You Save?
The cost of installing solar panels on your home may be significant, but it can be well worth it in the long run. In fact, you may be able to start saving right away on the price of your system if you qualify for tax breaks and incentives. For instance, the federal government currently offers tax rebates of up to 26% of the price of your installation. Many states also provide additional discounts and incentives if you choose to go solar, so it’s a good idea to do some research on what may be available to you where you live.
Looking at the impact solar panels can have on your electric bill, the typical household spends roughly $125 per month on electricity from the grid. This means a home that receives all its power from solar would save around $1,500 a year. In most cases, however, homeowners use solar to replace a portion of the energy they consume, so your savings may be somewhat less than that.
There are a number of factors that determine your overall savings. These include the price of grid electricity where you live, how much power you consume on a daily basis, the number of panels you have, and how much sunlight you typically receive. You also may be able to sell any unused electricity back to your utility provider, further reducing your bill.
The average solar panel lasts between 25 and 30 years before they begin to lose their efficiency. This means that once you’ve paid off your installation, you still can expect many years of saving on your energy bills. To learn more about how you can start to take advantage, follow the link for more information about solar financing.