Solar panels are good for the environment and may save money on bills. You may save up to $30,000 on your electricity over your lifetime, but multiple factors create the savings. The amount you pay for electricity and energy usage trends are factors to keep in mind.
What’s Your Monthly Energy Consumption?
Before deciding on a solar system, you should track your monthly energy consumption. The average household uses about 893 kWh per month. The amount of kWh per month depends on your location. Every design is different, but solar panels may produce between 350 and 850 kWh per month. People who use the average or above-average amount of kWh per month can save up to 95% off their utility bill.
If your home doesn’t require a lot of energy daily, you may not save enough to cover the solar system installation cost. Some utility companies offer a net-metering program, which sends energy produced by your solar panels back to the grid. The utility company deducts the extra energy from your monthly bill.
Where’s Your Home’s Location?
Your home state is vital to the effectiveness of your solar system. Certain local governments offer additional tax incentives, and sunny places have more exposure annually. Ten states receive more sunlight exposure during the year than others.
- New Mexico
Santa Cruz, CA, is an excellent region to install solar panels as the city gets 262 days of sun in a year. However, the system may not produce as much energy in an area with a lot of shade. The size, shape and slope of your roof are necessary factors. An optimal roof faces south, southwest or west in the northern hemisphere and has a slope between 15 and 40 degrees.
How Much Do Solar Panels Cost?
The price of solar panels depends on the retailer and brand, but the panels are only a fraction of the cost. Our electricians will handle the maintenance and additional equipment, such as solar batteries, which make up the rest of the installation cost. Each property has different factors, but the price of a solar panel system has dropped by 60% over the last decade. A 6-kWh solar system may cost between $16,000 and $21,000, including equipment and professional installation. The federal government also offers a 30% tax credit for installing residential solar panels.
How Long Until You Recoup Your Investment?
Installing solar panels can have an instant benefit by increasing your home value by up to 4.1%. How long it will take to recoup your initial project investment depends on the cost of your solar system. If the installation was around $11,000, it should take about seven years to recoup the cost. If the installation costs around $26,000, it’ll take about 12 years.
Solar panels are a great addition to most homes, but you should understand the other factors when calculating the savings. If you live in a sunny state, then odds are, the solar panel system will pay for itself over time. If you want to learn more about energy consumption and solar panels, call us at Fisher Electric today.