One of life’s rarest occurrences is possible when installing solar panels on your home. More than 2 million households have already installed solar panels due to this compelling incentive. Over 60,000 people requested residential solar system bids on SolarReviews.com in August 2021, a record high.
But the economics can vary widely depending on where you live, what your utility provider costs for electricity, and how much power your unique home consumes.
The solar payback estimate at the beginning of our Solar Panels for Home Beginners Guide helps you determine the financial benefits of going solar by taking your current power bill and zip code into account.
Home Solar Power Costs
Solar power is a capital-intensive endeavor, and the bulk of the expense of operating a system is incurred at the time of purchase. For the most part, the cost of the solar module will be the greatest single item.
An inverter, metering equipment, other housing components, cables, and wiring gear are required for installation.
In other cases, battery storage is also a consideration for homeowners. When utilities pay for surplus power sent back into the grid, batteries have become prohibitively costly (see below). Installation costs must be taken into consideration.
Solar Energy for the Home: Advantages
An important advantage of the PV installation is that it lowers one’s utility cost. However, this benefit depends on solar energy production capacity and utility companies’ charging power.
However, additional considerations must be considered when deciding where to place a solar panel.
Top 4 Advantages of Residential Solar Panels
After the surprise storm in March, Stella, the Northeast, has been warming up towards spring. Our energy costs will go up when the temperature rises this summer, and it won’t be long until that happens.
1. Lower or Eliminate Utility Bills
This one stands out. There is an average amount of sun in Washington D.C., yet it’s enough to power our home of three kids and two adults at net-zero energy use. We produce far more energy than we need on sunny, warm spring days, which we sell to the utility. We use electricity from the grid during the hottest months and on gloomy days.
While sunny places receive an average of just 5.5 hours of sunshine every day, even overcast locations receive more than two hours of direct sunlight each day.
Even though solar panels produce more energy on bright days, they may still take power from the grid even when the sky is overcast. Your home will still be powered by the sun, even if it’s coming in through a cloudy sky. On cloudy days, just 10% to 20% of the electricity generated on bright days is created.
2. Earn Tax Credits and Rebates.
Even though I didn’t understand it at the time, our solar panels are paying us for their services. To begin, you will be able to claim a federal income tax credit of 30% of the total system expenses when you submit your taxes. This equates to a $7,500 savings on a $25,000 solar system.
SRECs, state, and municipal rebates, and other cost-cutting measures can slash overall expenses in half. It is possible to sell SRECs to utility companies throughout the year, resulting in a substantial return on the initial investment.
When our mayor Muriel Bowser was elected in 2016, she signed the Renewable Portfolio Standard Expansion Act into law. B21-0560 boosts the renewable portfolio standard to 50% by 2032 and the solar standard to 5% by the same year. With this measure, the Department of Energy and Environment has established a program to help low-income families put solar panels on their homes.
3. Begin Saving as Soon as Possible
Energy bills may run into the tens of thousands of dollars a year. Energy costs for transportation and home use are included in the average yearly energy expenditure of $3,052. As soon as solar electricity is deployed, these expenditures can be reduced or eliminated.
Long-term savings are also beneficial since the sun’s electricity may be harnessed for free. Your home’s resale value is greatly enhanced by installing solar panels. Homebuyers better understand solar panels since they don’t have to make the first investment and installation themselves.
You may increase the value of your property by approximately $18,000 by installing a 3.1-kilowatt solar panel installation.
4. Help the Environment, and we all Benefit
Solar power systems harvest clean, pure solar energy. With solar panels on your roof, you can help battle global warming by reducing our reliance on foreign oil.
Coal and natural gas are the primary sources of traditional power. In generating energy, hazardous gases are emitted from the burning of fossil fuels.
These pollutants are the principal contributors to air pollution and global climate change. It is not only harmful to the environment, but fossil fuels are also a limited supply. Price changes often and can rise in minutes because of this.