01 Jun Are Residential Solar Panels Worth It?
If you’ve ever spoken to anyone from any solar company, you’ve heard a similar sales pitch: “Switching to solar can save you thousands of dollars!” But how true is this pitch? That largely depends on a number of factors. Read on to find out the breakdown of whether or not installing residential solar panels is worth it for you.
How Much is Your Electric Bill?
How much you pay for your electricity is the number one factor of how much money you’ll actually save by installing residential solar panels.
You currently pay your utility company for every kilowatt-hour (kWh) of electricity you use, so depending on where you live, you could be paying anywhere between 8 cents per kWh up to over 20 cents per kWh.
When you install residential solar panels, you’re pretty much installing a mini power plant on your roof so you won’t have to use the electricity produced from the utility company’s power plant. The more you currently pay for your electricity, the more you’ll be able to save by installing residential solar panels.
How Much Does the Solar Panel System Cost?
The cost of installation will vary depending on the company you choose to install your residential solar panels. Also, keep in mind that cheaper isn’t necessarily better in this case. By installing higher quality solar panels, your total 20-year savings will usually be a lot higher.
Also, there are usually solar incentives and rebates available, depending on where you live. These incentives can typically save you 50% or more. The federal government offers an incentive, and many states have additional financial incentives. Just be sure to research how much you can receive in incentives to install solar panels on your home.
How Are You Financing Your Residential Solar Panel Installation?
You can usually choose whether you want to buy or lease your solar panel system. This decision greatly affects how much you’re going to pay for your solar panel installation. Keep in mind, however, that if you have the cash to buy your system outright, your overall long-term value will be much better.
Most solar companies offer solar leases and power purchase agreements (PPAs). While these options boast no money down and maintenance-free promises, your total savings usually only end up being 10 to 30 percent of your electric bill.
You Have Options
Typically, homeowners who get multiple quotes can save 10% or more. Be sure to get quotes from different solar installers to compare prices, both of the equipment and installation. Also, remember to find out what kind of equipment is being installed and what the maintenance agreement is for each company you receive a quote from.
Installing residential solar panels doesn’t have to be a daunting process. We can help! We can answer all your questions and make the installation process simple. Contact us to get a residential solar panel quote today.