The use of renewable solar energy through solar panels is evolving progressively, fuelled by the dropping prices, environmental benefits, and low maintenance. In 2021, the solar market in the U.S. observed a 19% increase since 2020, with a record 23.6 GWdc of solar capacity installed.
It’s becoming more common to install solar panels or photovoltaic systems on rooftops, whether for a home or an organization. You have probably heard from friends, neighbors, or colleagues that installing solar panels has been the best decision. This makes you wonder:
Are solar panels worth it?
Should I invest in them?
Do solar panels save you money, or is it more hassle than it’s worth?
And how much does it cost to install them?
So let’s find out!
How much do solar panels save?
Solar panels or photovoltaic cells save you a ton of money by reducing your electricity bill using natural sunlight to provide power to your homes. The amount of money you save essentially depends on your electricity usage and the size of the system installed.
If you want to know how installing panels on your home saves you money, look at how much you spend on your electricity bill every year. Electricity usage for the average U.S. household is around 10,694 kWh per year. That equates to an average of 877 kWh every month.
If you multiply the national average electricity rate, $0.1301 per kWh, by average electricity usage per year, you’ll find that you can save up to nearly $1,400 per year. That’s a big potential savings!
How much does it cost to install solar panels?
The cost of solar panels depends on various aspects such as size, type, and model. The location also factors in the solar system’s cost, e.g., gloomy areas cost more solar power while sun-drenched ones cost less.
On average, installing solar panels in the U.S. costs about $12,000 after federal solar tax incentives. You can install a smaller system for as low as $5,000, whereas a high-priced advanced, Tier 1 solar panel installation can cost up to $40,000.
Can solar panels pay for themselves?
Yes, they absolutely can!
The solar panel payback period is defined as the time it takes for you to pay off the cost of your solar power system by the savings on your electricity bill.
On average, it can take 9 to 12 years for them to pay for themselves.
To quantify, calculate the total cost to install the panels, and subtract out any solar tax rebates and monthly electric bills savings – around $115 – until the system’s total cost has been completely reimbursed.
Do solar panels earn you money?
The money you save while using a solar panel largely depends on the size of the system used. A decent-sized system can generate enough solar power to provide electricity to the entire house. The cherry on top is that a lot of power is saved.
The money you earn can also pay back the system’s upfront cost. A lot of electricity can be saved depending on how long you stay in the home. You can even sell any spare energy back to your power company!
Are solar panels worth it?
There are many money investment opportunities around us—so many that sometimes it gets overwhelming to decide which one is the right one among a pool of scams and hoaxes.
Solar panels have proven to provide long-term benefits for the past few decades. This is apparent because homeowners, businesses, and even the government invest in it.
Besides slashing your electricity bills in half and earning you money on the side, installing solar panels has proved to be a solid investment that increases property values. People looking to buy homes in America are willing to pay a premium for a house installed with solar panels.
Solar panels can last up to 20-25 years and require the barest minimum maintenance to function. All you have to do is thoroughly clean them a few times a year and change their invertor every 5 to 10 years, and that’s it. You can use solar panel cleaning kits with cleaning tools and detailed instructions to make the process easy.
This renewable energy source provides electricity without using electrical power generated from burning fossil fuels like oil, coal, and natural gas—all non-renewable elements.
Plus, burning fossil fuels can negatively impact the environment by producing emissions that leave a substantial carbon footprint. On the other hand, renewable sources like solar and water energy do not generate emissions. That is why solar energy has a considerably low carbon print.
Government incentives and rebates
Several government incentives have made it possible to afford solar panels. Homeowners and businesses are offered grants and rebates to move toward a green and environmentally friendly solution.
Moreover, it’s hard to be immune to the enticing offers that allow you to sell back your surplus energy and earn profit.
Solar panels have taken the world by storm for the past few decades. Over time, homeowners, businesses, and governments gravitate toward the environmentally safe and pocket-friendly solar panel system that functions with minimal maintenance.
In addition to cutting back your utility bill costs, solar panel systems can earn you money. You can sell the excess energy to power companies to earn money on the side and use the money to pay back the upfront cost.
So, installing them is a smooth investment you should look out for if you want to reap long-term benefits.