Residential Solar Panels have been becoming popular over the past ten years. They are a good investment with plenty of returns. Many homeowners and companies are switching from fossil fuels to clean energy sources like renewable. All this is needed to halt climate change and global warming. This article will be a guide to tell you everything about residential solar panels.
Residential solar systems can cost you around $16,870 to $23,170 after factoring in the federal solar tax credit. Think of going solar as a long-term investment. You can get returns on your investment in 8-10 years. Solar panel costs vary with location, system size, manufacturer, and brand.
Do Residential Solar Panels Worth It?
You should check out a few things if you want to know if solar panels will be worth it for you:
Own The Property:
You shouldn’t try to install a solar system if you don’t own your property. If you do this, you’ll have to go through a lot of trouble and paperwork.
Get A Good Price:
You’re getting a good deal if you purchase a solar system from a reliable company with a lower cost than the market.
Pay High Electricity Bills:
If you suffer from high electricity bills, installing a solar system will be worth it since you’ll save a lot of money. Higher electricity charges amount to higher savings. This will also shorten your solar payback period to 7-8 years.
If you have ticked all these points, you can go solar. The good news is that people who don’t fit all criteria can also apply for solar.
Solar might be just right for you if you live in a good state with lots of incentives. Here are some states that favor solar:
You can buy any solar system tax-free. No extra taxes on installing solar in your home. Net metering is available. Has the best SREC incentive program. The rebate program offers you $1,000 for installing a solar system.
No additional taxes on homes with solar installed. No taxes on the purchase of solar systems. Net metering is available. The state has a Smart-E Energy Efficiency Loan Program providing $40,000 for 5-12 years at a 4-7% interest rate.
You can save 6% on your purchase price with a sales tax exemption on electrical equipment. You also don’t have to pay taxes for your solar system for the first five years of its purchase. Net metering is available. You can avoid HOAs while installing solar systems through solar easement and rights laws.
The National Grid’s Renewable Energy Growth program provides 28.75 cents for each kilowatt-hour (kWh) produced by your solar panel system for the first 15 years. The state also has a solar grant program that lets homeowners save up to $5,000 on their solar energy systems. Net metering is available. Taxes on energy products, like a new solar system, are exempted. Adding solar panels to your home won’t increase the property taxes on your home.
You can get upto 25% off your solar power system cost. The Megawatt Block Incentive offers up-front dollars-per-watt ($/W) rebates for residential and commercial solar panel systems. Net metering is available with the NY Sun Initiative, which offers many solar initiatives, including community solar.
Residential Solar Panels Working
Solar panels convert sunlight into electricity through the photovoltaic effect, which is why they are also called photovoltaic or (PV) panels. The solar electricity generated can power appliances, homes, and devices. Ultimately, this reduces your electricity bills and carbon footprint.
Calculating Amount Of Solar Panels Needed
Average homes require 17-21 solar panels to function. However, every home is different, and you’ll have to calculate the number of solar panels your home needs by a formula. First, find your system size, divide it by the production ratio, and then by the panel wattage. The factors which can change this amount are:
- Energy consumption habits.
Like any other investment, homeowners ask if Residential Solar Panels will save them money and reduce their bills. The answer is yes, but your exact savings will depend on:
- Local electricity rates.
- Your location.
- Daily sunlight duration.
- Angling of roof.
- Size of the roof.
You’ll have higher savings if you live in an area with high electricity rates.
A Good Investment
Investing in solar energy is a smart move. Solar energy systems provide an even higher return on investment (ROI) compared to other investments like the S&P 500. After paying off your solar system, you can enjoy completely free electricity. Your solar payback period or the time that you will take to offset the cost of your solar system depends upon:
- The local utility charges.
- Energy consumption.
- Energy production.
It’s better to select high-quality modules with sturdy warranties. Residential Solar Panels last, on average, 25-30 years, so it’s wise to keep them in good condition as they will be with you for a long time. Plus, they increase the value of your home by about 4%.
Planning For Solar
Residential Solar Panels don’t magically appear on your roof; you’ll have to go through a certain process to get them installed and working so that you save money. Here are the steps to getting solar for your home:
Determining Solar Energy Potential:
The first step is checking whether your home is compatible with solar. Firstly, check the tilt, direction, and angling of your roof. The ideal is a roof facing south with a slope of 15-40 degrees. Also, check for sunlight exposure throughout the day. If your home receives low sunlight daily or is shaded by trees or buildings, you should first fix that before getting solar.
Community vs. Rooftop Solar:
The best thing about residential solar is that homeowners have an array of options for installing solar for their homes, even those who don’t have a roof. With community solar subscriptions or ground-mount solar installations, you don’t have to install anything on your roof. A ground-mounted solar system can be installed near your home to access electricity without the hassle of rooftop installation, while in community solar, members of a group share a solar system.
You’ll have to know your energy consumption and roof size to calculate how many solar panels you’ll need for your home. The average is 17-21 solar panels for one house. They can cover 100 percent of a home’s electricity usage. However, the amount still depends on a few things:
- Energy consumption.
- Panel-rated power.
After selecting the system you want and confirming the compatibility of your home with it, you can move on to the payment stage. You should contact different solar companies to get varying quotes. Don’t just stick to one company because they seem reliable. Exploring and researching quotes will help you get a top-quality solar system at a reasonable price.
You’ll have to decide how you’ll pay for your system. There are many options for financing a solar system, but the top three are power purchase agreements (PPAs), solar loans, and solar leases. The best return on investment is through upfront cash.
However, financing with the above options will help if you don’t have enough cash. Federal and state solar rebates and incentives help lower the cost. Most panels have an investment tax credit for solar. This decreases the price of solar by 30%.
After the planning, permitting, approval, and inspection stages, it will be time for the installation. This only takes a few days, depending on a few factors. For instance, applying for net metering could add additional time as the panels will be connected to the grid. The overall process is time-consuming, but installation is quick.
Pros And Cons
- Net metering: excess electricity can be sent to the grid to earn credits.
- Versatile energy source.
- Eliminates electricity costs.
- High returns on investment.
- Decreases carbon footprint.
- Increases home value.
- Choosing and finding local installers is challenging.
- Not compatible with every roof.
- Lower electricity costs amount to lower savings.
- Not the best choice if you’re planning to move out.
- Solar panels are expensive.
In short, it’s a smart choice to invest in Residential Solar Panels. Not everyone can fit solar on their rooftop, and that’s okay too. Whoever needs electric bill reduction or energy upgrades should move to solar. However, solar isn’t compatible with everyone’s homes.
Net metering has its advantages; only some states provide it. Therefore, many homeowners should have a backup power source when their Residential Solar Panels aren’t working. This is where solar batteries come in. You can accumulate savings and survive power outages with solar batteries. Solar batteries are useful in decreasing your reliance on the grid when the sun isn’t shining.
Finding Solar Installers
Finding credible installers is hectic, but you can easily vet installers with the right solar company. These companies can research and explore different quotes and find you the best solar installers in your area. This research includes extensive background work on these installers to check whether they can be trusted. The company will also check if their installation work is good and how often they come to inspect and maintain your system.
The Right Choice?
Residential Solar Panels: You might be thinking if installing solar is the right choice, but we assure you, it is. Researching the market, contacting installers, selecting which panels to invest in, and scheduling installation are long and hectic processes. However, once you’re through this hurdle, you can enjoy great returns on your investment and free electricity after a certain period. Solar is worth it.