Whether you are searching for an alternative to traditional energy, ways to help the environment, or simply to reduce your electric bill, you have probably thought about installing solar panels on your home or business.
If you can generate free electricity from the sun hitting your roof, something that is readily available in pretty much every area, why wouldn’t you? It’s a solution that just makes sense, for both the environment and your wallet.
The biggest question many people ask is whether or not solar panels actually save you money in the long run, and if so, how much does it actually save?
The overall savings will depend on the size of the solar panels you choose to install on your property.
How much do solar panels cost?
We’ll start with the actual solar panels themselves. On average, the price for a solar panel system in the United States is around 3 dollars a watt. With the average solar panel system being around 6 kilowatts (or 6,000 watts) that means the typical cost for installation of a system is about $18,000. This may seem like quite an investment, but aside from the great savings you will see month-to-month you’ll also be able to claim the Federal Solar Tax Credit which knocks down the overall cost of installation by 26%!
The Federal Solar Tax Credit isn’t the only way to save on your initial investment – many states, local governments, and utility companies will offer you great rebates and other tax incentives for installing your new solar panel system.
The difference on your electric bill
We’ve gone over the general costs of installing solar panels and how much tax credits and other incentives will save you up-front – but the next question to answer is “How much money will I save with solar panels?”.
There are a few factors that will affect your overall cost savings, they can fluctuate depending on the exact details of your installation. Things like the number of hours in direct sunlight you get each day, the overall size of your roof, and your local electricity rates.
The average American household spends about $1,500 a year on electricity costs from traditional sources.
This means that installing a solar panel system that covers your individual needs can result in well over $100 in savings every single month! This not only means your newly installed solar panel system will pay for itself rather quickly, but you’ll be saving more and more money after that.
Another factor to remember is that utility rates INCREASE annually, meanwhile generating your own electricity with solar panels stays the same.
Solar Panels last for decades, have much less overall impact on the environment, and save you money year after year making it one of the best investments you can make for your home or business.