It’s a big decision to install solar panels on your home or business, which is why you might be questioning whether solar panels are really worth the investment. Industry experts are claiming that solar panels are the future. Should you take the leap now or wait for a while?
When you consider the clean energy and financial benefits, though, it’s easy to see why so many people are jumping on the solar bandwagon.
In this article, we’re breaking down the most important things you need to consider to ensure you are making the right move when you invest in a solar installation.
See how much you can save by going solar with Palmetto
How Much Do Solar Panels Cost?
Your out-of-pocket costs for solar panel installation can vary greatly. On average, it cost $3.25 per watt to put solar panels on your home at the start of 2024, according to the Solar Energy Industries Association. But the actual cost to you can vary depending on where you live, how big your system is, and what incentives you qualify for. When you are talking to a solar installation team about your options, make sure the estimate includes both materials and labor.
Factors that will influence your solar panel cost include:
- Hardware and equipment
- Installation and labor
- Financing fees
- Required permitting
- Solar panel brand, make and model
- Solar panel output rating and efficiency
- Size of your home and system
- Your energy usage
- Installation complexity
- Panel location and orientation
- Roof condition
- Additional features, such as a solar battery
Keep in mind that your solar estimate isn’t necessarily your final cost. Various incentives might bring down your solar panel cost. For example, many homeowners take advantage of the federal solar tax credit, which allows you to deduct 30% of the installation costs. You can use this tax credit during the tax year when the installation is completed.
Additionally, look into other state incentives that might reduce your out-of-pocket costs even more, such as:
- State tax credits
- Tax exemptions
- Net metering programs
- Solar renewable energy certificates
- Low-interest loan programs
Another factor to consider when evaluating your overall costs is the time and money required for solar panel maintenance. The good news is that quality solar panels are quite durable and can last well over 20 years with minimal maintenance.
How Much Can Solar Panels Save?
Even though the upfront costs seem high, the truth is that the savings add up over time. Initially, you will be in the solar panel payback period, which is the length of time for you to break even on your investment.
During that time, your goal is to save as much on your electric bill as you pay monthly for the solar panel system. Once you’ve saved enough to match the cost, you have free, clean energy to enjoy for many years.
You can calculate your solar panel payback period based on the installation cost minus any incentives or rebates. Then, this number is divided by the monthly amount you are saving on your electricity bill.
For example:
$16,000 (Cost of solar panel installation)
- $4,800 (Federal tax credit or other incentives you receive)
= $11,200 investment (Your total out-of-pocket cost)
Assuming your solar panels decrease your energy bill by $100 per month, it means that you are saving $1,200 per year.
$11,200 investment / $1,200 savings per year = A payback period of 9 years and 3 months
Keep in mind that these calculations assume that your electricity rates stay the same during the payback period. But if electricity rates go up, your payback period will be shorter.
See how much you can save by going solar with Palmetto
When Are Solar Panels Worth It?
Solar panels are worth it for many homeowners, especially if you live in an area with high electricity rates, you have plenty of sunlight, and you intend to stay in your home for many years.
However, there are a few situations where investing in solar panel installation might not make sense. For example, if your home is heavily shaded or you already have low energy bills, then the upfront costs might be too high to justify the potential savings.
Also, solar panels may not make sense if you plan to move to another home within the next few years. Solar panels can increase a home’s resale value, but how much is hard to predict. In order to make the initial investment worth it, the long-term savings need to make financial sense.
Other Benefits of Solar Panels
While the financial benefits are typically the biggest motivator for homeowners to invest in solar panel installation, there are many other benefits you might reap.
- Increase property value: Having solar panels on your home increases overall property value. When you decide to sell, your home will likely sell faster, and you will likely receive a higher price.
- Reduce environmental impact: You can’t put a price tag on the environmental benefits of solar panels. Clean energy from the sun means reducing your carbon footprint by decreasing your need for fossil fuels. Shifting away from fossil fuels helps to reduce air pollution and combat climate change at the same time.
- Enjoy energy independence: When you have solar panels and a backup storage system, it reduces your dependence on the grid. If there is a power outage in the area, you can still power your home because of the energy coming from the sun.
- Low maintenance: Once the solar panels are installed, you can enjoy these benefits without worrying too much about ongoing maintenance costs. Solar panels are pretty durable. Maintenance requirements include occasional cleaning and inspections to ensure the panels perform optimally.
Are you ready to learn more about the benefits of solar panels for your home? Our experienced team at Palmetto is always here to help. Contact us at your convenience to schedule a complimentary consultation and receive a free estimate for your solar installation.
You can find out if solar panels are worth it for you at your home today!
Frequently Asked Questions
Are solar panels worth it?
Yes, solar panels are worth it for many homeowners. This investment allows you to reduce energy bills and increase property value simultaneously.
Can I save money with solar panels?
Many people stand to save when they make the switch to solar. While it varies case-by-case, many people recoup the cost of their solar system in savings within 10 years.
Are solar panels for homes getting less expensive?
The good news is that the cost of solar panels has decreased significantly in recent years. As technology advances and you leverage federal and state incentives, this equipment becomes more affordable.
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Disclaimer: This content is for educational purposes only. Palmetto does not provide tax, legal, or accounting advice. Please consult your own tax, legal, and accounting advisors.
Andrew BlokWriter and EditorAndrew has worked as a journalist and writer for four years, over half of those dedicated to covering solar. He currently lives in Tucson, AZ, where you might run into him walking his dog and birding while dodging the heat. He has degrees in English education and journalism.
