Sopower

Are Solar Panels Worth the Investment? A Definitive Answer

Solar power seems like a logical decision. Why spend money purchasing power from the utility companies when you can generate it yourself? Nor are the benefits solely lower electric bills: lower carbon footprints and a boost to home values mean solar installation is a smart move. 

Learn about the costs of solar panels below and how you can see reduced energy bills from day one. With ever more people opting to go solar, discover why it’s a smart decision for your future energy and financial security. 

What is the cost of solar panel installation?

 

In most cases, the upfront cost of a solar power system installation is zero. That’s right! Because financing programs cover the cost of your system, you pay off the investment at a lower price than your current electricity bill. The system installed is based on the size of your home’s energy consumption. 

So, you’re not priced out of solar energy by an expensive initial investment. Solar power is for everyone.

Benefits of solar panel installation

Solar panels are a logical and smart decision to save you money. Here are a few benefits you can expect:

  1. Cost reduction. In the past decade, solar photovoltaic power has experienced a dramatic cost reduction compared to traditional fossil fuel systems. There’s never been a better time to invest in a solar energy system.
  2. Lower emissions. Some emissions are produced when constructing the solar panel. But, once installed, it generates 100% renewable energy for your home. It’s a massive reduction in CO2 emissions, helping the planet as well as your wallet.
  3. Financial perks. After the one-off initial payment, you’ll notice a sizable reduction in bills each year. Homes with high electricity bills see the best price reduction after installing solar panels. It’s a significant financial benefit for your home or business’s finances.

What factors affect solar panel output?

You’ll want to consider the factors that determine whether solar power is affordable:

  • Your roof faces south or west.
  • You have sufficient roof area to fit solar panels.
  • Your roof receives plenty of sunlight.

Solar panels blocked from direct sunlight by neighboring buildings or trees can significantly reduce system efficiency. Due to the sun’s movement, solar panels facing the south or east are also critical to ensure greater solar energy production.

You’ll also want to check your local area’s solar potential, i.e., the average number of hours of sunlight per year. It’ll help you calculate your total energy production and the savings you can expect.

See The National Renewable Energy Laboratory’s (NREL) solar irradiation maps for further information. 

Subsidies and rebates

You don’t need to shoulder the cost of solar energy system installation alone. Using federal, state, and energy company subsidies and rebates, you can reduce the installation costs substantially. 

For example – in 2022, the solar federal tax credit means you can claim 26% of your system’s cost (set to end in 2023). 

For a complete listing of all the state incentives for renewables and efficiency, see the DSIRE database. You should also contact your utility company for further details.  

A final thought

Investing in solar power is the best decision you’ve yet to make. With rebates and subsidies, it’s cheaper than ever – as the cost of PV panels continues to fall. Use the information above to decide if it’s an affordable decision for you, and see how much you’ll save with one of the smartest decisions for your home. 

 

References:

https://www.ecowatch.com/solar/worth-it

https://www.ecowatch.com/renewables-cheapest-energy-source-2020-2653729451.html

https://www.irena.org/newsroom/pressreleases/2021/Jun/Majority-of-New-Renewables-Undercut-Cheapest-Fossil-Fuel-on-Cost

https://us.sunpower.com/pros-and-cons-solar-energy

https://www.nerdwallet.com/article/finance/solar-panel-cost

https://www.solarreviews.com/solar-calculator

https://www.investopedia.com/articles/mortgages-real-estate/10/solar-power-home.asp

https://www.nrel.gov/gis/assets/images/solar-annual-ghi-2018-usa-scale-01.jpg

https://www.dsireusa.org/

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