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Do Solar Panels Save Money?

While the planet warms up at an alarming rate, going green and learning how to save with solar energy will definitely help.

If you’re wondering if it’s possible to help the planet while saving money at the same time, then yes一and we’ll tell you how down below.

Do Solar Panels Save Money?

How the Use of Solar Panels Help Build Savings

Do solar powers save money?

That depends on a number of factors. You can read this quick guide on what these factors are to learn how to get the most savings.

1. It gives lower utility costs.

One of the best selling points of installing a solar system is getting a lower electricity bill.

Due to these lower charges, average houses are estimated to save up to $20,000 throughout the life of their solar panel systems.

How much your savings will be will vary depending on many factors, such as your location and whether your (state’s or country’s) government gives tax incentives for solar panel installation.

Through the savings culled from lower utility costs, going green means that, in only one year, you can save enough to cover a significant amount of what the initial system has cost.

The caveat is that if utility prices fluctuate, so could the amount of savings. It is also dependent on the household’s changes in energy consumption.

The important thing then is to review your electric bill and see if there truly is benefit from the switch, knowing that charges are flexible.

2. Selling excess energy is a source of extra money.

There are also a lot of cases of systems producing an energy surplus. When this happens, excess energy is sent back to the grid, especially if yours does not have adequate battery storage.

This energy is not sent back for free, though. Depending on your residence, there are regions that offer varying prices and selling caps.

For example, a 12.5-megawatt wind farm just outside Greensburg, Kansas, generates more energy than it needs.

The excess energy is sold back to the town’s grid. As a result, the farm not only produces its own energy but also profits from it.

The same scenario is applicable to residential owners who own solar systems. Utility incentives, such as the one Nevada’s NV Energy gives to its customers, offer up to 16 cents for every watt-hour produced.

3. Solar panels give a price boost for real estate properties.

Installing a solar panel system for your home increases its value. For one, a house that comes with a pre-installed solar system is a big perk for any buyer.

After all, they can earn from it by selling excess energy back to the local power grid and saving up on electric costs.

That said, the price boost is still dependent on a few factors.

Higher kilowatt systems are more efficient compared to their lower kilowatt counterparts, especially in states that receive more sunlight.

Other factors are installation and replacement costs and the age of the system being installed.

It is important to pass on these details to the next homeowner if you really want to maximize the value of your property.

Do Solar Panels Save Money?

4. Incentives from the government also generate savings.

Lastly, you can save money, in a way, through incentives offered by some countries’ governments, such as a few states in the United States.

An example is how taxpayers can claim 26% of installation costs within 2022 via a residential federal tax credit system.

Saving money in this regard comes in the form of reducing taxes, even possibly eliminating them.

Additionally, there are other incentives in other locations.

Some states offer property tax exemption, waived fees, cashback, and expedited permits for those who own solar panels. That said, as solar power gains more traction and is sold cheaper recently, these incentives may not last for long.

A Good Deal

Overall, the cost savings all boil down to electricity consumption and local electricity rates.

Other factors, such as direct hours of daily sunlight vis-a-vis energy produced and whether your system was directly purchased or leased, also matter.

Still, the savings from lower electricity bills and state-given incentives, as well as the profits from selling energy, are a good deal.

Unfortunately, there currently aren’t any plans in place to grant federal incentives for purchasing systems beyond 2023.

This makes it a time-limited opportunity, so if you want to save money and go solar, now is a good time to do so.

On another note, it is wise to consider that, for every move, there are drawbacks.

Weigh the pros and cons to see if solar energy is for you.

Should you happen to live in a place with a great solar rating and your wallet can afford the investment, then make the switch.

Just note that the savings won’t come in an instant—though saving the environment is already a plus right away.

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