Getting solar energy for your home is a big investment. You have to know what to expect and how to get the most out of your system. A few things to keep in mind are cost, energy savings, tax credits and maintenance. The good news is that the government and utilities are always trying to encourage homeowners to make the switch to renewable energy.
Cost
The cost of going solar depends on a variety of factors, including your home’s location, the size of your system and the type of panels you choose. Your energy usage, tax credits and incentives may also affect your total installation costs.
Before deciding to go solar, be sure to get an estimate of your electric bill. Then subtract that cost from any savings you could realize by switching to solar power. Depending on your financial situation, you can choose to pay for your solar panel system outright or take out a loan. Both options will save you money in the long run and qualify you for incentives.
Energy Savings
One of the biggest benefits of solar is that it can save you a lot of money over time. While this depends on your utility’s electricity rates and how much power you generate, the cost per kilowatt-hour (kWh) is usually significantly lower than what you’d pay for your energy from the grid.
Your local utility’s net metering policy, which pays you for the extra electricity you push onto the grid, also affects your savings. For example, if you have enough solar panels to produce more than you use in a month, your utility will typically roll over that excess kWh into the following month’s bill.
The return on investment (ROI) of a solar system can be influenced by your local electricity rates, your total system cost and whether you buy the system upfront or take out a loan. Often, solar systems will pay for themselves in as little as 3 years. However, if you’re not in a good location for solar irradiance, your ROI may take longer.
Tax Credits
If you’re planning on installing a solar power system, you may be eligible for tax credits or incentives. These can make the cost of going solar much more affordable.
The federal tax credit for residential installations can reduce your system costs by up to 30%. This means that you can save up to $8,400 if you install a $12,000 system. You can claim this credit by filing IRS Form 5695 as part of your taxes. It’s a good idea to keep your expense receipts and complete the form before filing to ensure you get your full credit amount.
Some states also offer their own solar rebates and incentives. These usually do not affect your federal solar tax credit, but they may help you save money and improve your home’s value. Some state rebates can be as much as 20% of your total system costs.
Maintenance
Solar panels are engineered to withstand harsh weather conditions, but they are not immune to damage. In the same way that you wouldn’t drive a car without a maintenance plan, your solar system shouldn’t be left unmaintained. The good news is that most solar providers offer regular preventative inspections and cleanings to keep your equipment operating at its best.
The most reliable indication that your solar panels require maintenance is when they stop producing as much energy as they used to, which can cause an increase in your electricity bill. If you notice this, it’s a good idea to schedule an appointment with a technician to get them repaired.
Mohave Solar is a solar company that specializes in designing and installing systems for both residential and commercial customers. They are based in Lake Havasu City, Arizona and provide services in Mohave County and La Paz County. They have years of experience, highly favorable customer reviews, verified licenses, and fair pricing. Contact them today!