The Economics Of Adding Rooftop Solar Panels To Your Home

Going solar has never been easier and more cost effective – why keep waiting?

Though prices continue to go down, current technological advancement has easily surpassed the breakeven point, making solar panels a viable investment for cost savings now.

Investments into solar systems can be made in three forms: cash, loan, and lease. Paying upfront maximizes savings, but more conservative investors will still experience instant savings that, accumulated over time can be quite substantial as well. The abundance of financial benefits to going solar make it a no brainer.

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Rebates and Incentives

Solar rebates and incentives curb the initial cost of going solar. Up to $10,000 in savings is available for the average property that can needs a system size of 6.5kW. This amount comes from a variety of agencies that at the federal, state, local, and utility levels.

In addition, if your project qualifies for more than one set of criteria, you can reap the benefits from multiple incentives. For example, the solar Investment Tax Credit (ITC) provides a 30 percent tax credit for homeowners that purchase a solar system.

However, the incentive amount decreases with each passing year. Create a project with PickMySolar to scope out the incentives relevant to you.

Avoid paying utilities

Take a look at your energy bills over the past year to get an idea of how much money you can save by installing solar panels.

Assuming your average monthly bill is $250, you can expect your energy bill to be reduced by over 40% with a solar loan payment replacing your utility costs. This is a consistent discount that guarantees that you won’t be affected by annual rate hikes.

Making Solar Panels

Long-term savings

For the average homeowner expecting to own their home for 20+ years, the total long-term savings from not having to pay utilities should provide a steady stream of cost savings. Furthermore, solar installations offer a higher return than any other home improvement project, making the property more desirable.

Solar-powered homes are in high demand, with California homes selling 20% faster at a 17% higher price than comparable homes on the market.

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3 Tips for New Solar Shoppers

  1. Think about where to position solar panels on your property. There are a variety of factors, such as facing south when located in the Northern Hemisphere.
  2. Find out which inverter is right for your system.
  3. Look into different financing options: purchase, loan, PPA/lease

Check out this solar starter guide for an in depth overview into making your decision to go solar.

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