The cost of going solar is a big hurdle for most people to get over.
If you’re thinking of purchasing solar panels for your home, chances are you’ve taken a look at solar installation costs. Although prices are always coming down, you’re still going to have to put up at least $20,000 to have them installed.
We all know solar panels can save you money, but how long do they really take to pay themselves off? Today, we’re going to look at the solar panel payback period by examining some of the incentives and savings that come with installing solar energy.
There are countless financial benefits to going solar, so keep reading, and you’ll see that making your money back isn’t as hard as you may think.
How Long for Solar Panels to Pay for Themselves?
The average solar panel system on an American home is made up of 20-25 panels, which rings in between $16,000 and $20,000 total. To figure out the payback period for solar panels, you have to look at your energy savings each year.
If you’re saving $2,000 annually by not having to pay electrical bills, then a $20,000 solar panel system pays itself off in 10 years. When you consider the fact that most solar panel systems last upwards of 25 years, you’re getting 15 years of completely free energy.
That doesn’t tell the entire story of solar panel cost, however.
Solar Incentives Explained
Monthly savings are why most people decide to purchase solar panels for their homes, but there are other incentives to consider as well. Federal and state governments are always trying to encourage people to convert to solar energy, so there are tax incentives and rebates available to many who install solar.
The most notable one is the federal investment tax credit, which allows solar owners to claim a 26% credit on their federal taxes. Some states offer similar tax credits, while municipalities and energy companies pay out through net metering and SRECs.
Depending on where you live, you could slice your solar installation costs in half. If your solar panel system costs you $20,000 upfront, you could end up paying $10,000 in the end. That makes the average payback time for solar panels even shorter.
How Much Do Solar Panels Save Each Month?
It’s possible to completely offset your energy bills every month, but you need to have the correct number of solar panels installed. The best thing to do is sit down with a qualified solar installer like Blue Raven to discuss your solar needs.
They can help you crunch the numbers to decide what size your solar panel system should be. Once you’ve got the right number of panels on your roof and the sun is shining, you’ll be able to count the days until you’ve paid them off.
Solar Panel Payback Before You Know It…
Solar panel payback gets shorter and shorter as solar prices come down. As more people go solar, our collective carbon footprint comes down, and we can start to slow the effects of global warming. This is the real benefit of solar energy, but saving a bit of money is pretty nice too.
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