Figuring out the real cost of solar panels involves a complicated calculation. You need to consider certain variables like the cost of materials, the installation cost, maintenance cost, as well as energy savings. Perhaps you should also consider the added value to your property once panels are installed. But as technology develops every day, the prices may also fluctuate thus making it a bit complicated to compute the actual solar power cost. Here’s a rough estimation about how much money you need to set up a greener household.
Cost of Panel Installation
Take a look at your recent electricity bills to determine the average amount of energy per month the household consumes. From there, decide how much direct energy from the sunlight you want to utilize per month. Yes, solar energy is absolutely free but the materials for PV panel installation can cost you an arm and a leg. On average, contractors sell about $6-9 per watt of solar energy. If you are looking to entirely shift to solar energy, you need to invest approximately $30,000 to $70,000 that covers the cost of installation, panels, inverter box, wiring, etc. The actual cost will vary with the kind of panels purchased, the size of your house, and the geographic location of your house.
Tax Rebates and Incentives
In the US, the Federal solar tax incentive is 30 percent of the total cost of installation. For example, if the total cost of your residential panel installation is $30,000 and the tax incentive is 30 percent, you will save $9,000. Therefore, the cost of installation is reduced to $21,000. Federal solar tax credits are also available. This is a dollar for dollar reduction in the government taxes you owed. So if the 30 percent of your tax credit amounts to $9,000, you get to enjoy $9,000 off the taxes you owe. Taking all the incentives, rebates and assistance, your investment could be recouped in a short period of time following panel installation.
Adding Value to Your Home
Let’s say that panel installation costs you $21,000 (after tax rebates). If your average monthly utility bill is about $250, which is $3,000 a year, that’s only about 6 years of recouping your return of investment. And if you can save $3,000 a year, multiply that by 20, your home is increased in value by about $60,000! In the US, property value rises about $20 for every $1 decrease in solar power cost. Apparently, you get a huge additional property value when you have panels installed in your home. That’s indeed amazing!
Think of all the money you will be saving with solar energy. Wouldn’t it be nice to afford other essential things like your child’s education, medical bills and other insurance than paying the money to your utility company? Heat your water, power up your appliances, run your multimedia players-all for free. With that in mind, you shouldn’t dwell on how much does solar power cost, but rather focus on how much money you will save in the long run!