The cost of energy, including electricity, has been going up in recent years. This has spurred home and business owners to seek out new ways to power their buildings. Solar power is one of the best options available since it provides savings on monthly bills. Inflation has gotten to the point where everything seems to be rapidly going up in price, and we are all looking for ways to get relief.
When you are considering the cost of investing in solar panels, you need to be aware that the savings you initially see might not reflect what they will be when everything is all said and done. To get an accurate average cost of installing solar panels, you will have to take into consideration several factors.
Review Your Electricity Bills
Your first step is taking a look at your electricity bills to see how much you pay in an average month. Your home will be different from your next door neighbors, since we all use energy differently. Solar panels can give you the ability to completely eliminate your electricity bills, although you may choose to stay connected to the grid just in case. You can potentially save the entire cost of your electricity bill every month if you switch to solar. Just remember though that the cost of electricity could go down, which would affect the amount you’ve saved.
Does Your Home Have Good Sun Exposure?
If you get good exposure to the sun, then your panels will be able to collect the maximum amount of electricity to provide to your home. The more electricity your panels can store, the more reliable your electricity will be. There is always a concern that you will run out of power. If this is a risk for your home, then you should stay connected to the grid and pay for power for those times when you are short. Some states have longer days and tend to have more sunlight, while other states are the opposite.
Get An Estimate For the Cost of Installing Solar Panels
Installing solar panels can be an expensive investment. You want to make sure you are getting the best return on it possible. The biggest cost associated with solar panels will be how much it costs to have someone come and install them onto your home. There are several factors that you need to consider to get a gauge of the average cost of solar panels. For example, the amount of power you use will determine how big your solar panel system will need to be. If it’s too small, then you won’t get reliable power to meet your needs. In general, you can expect to pay anywhere between $15,000 and $25,000 for a 5kW system. That should be enough to power a standard home in the United States.
There is a benefit to society for using alternative sources of power, so you can take advantage of tax incentives from the federal government if you do. These incentives can take a big bite out of the cost of your solar panels, making them even more affordable. There is even a benefit to getting them installed sooner rather than later. For example, if you get them installed during 2022, then you can claim a rebate of 26% of the cost. If you wait until 2023, that rebate drops to 22%. If you are planning on taking the step of installing solar panels in 2024, then you should know that there are currently no planned rebates for that time. That may change, however.
Other Things to Consider
Solar panels, like any other goods, are affected by market forces. That means that the price may go up or down over time. Plus, there are often geopolitical issues at play when it comes to the cost. An example of this is when the United States saddled solar panels and cells with a 30% tariff. That meant that the final consumer would end up paying for that cost.
As you can see, there are many different factors to take into consideration. Your final savings may not be the exact same as you’rere expecting, but you can still count on seeing a huge drop in your energy budget.