Did you know that Americans spend more than $200 billion a year on energy costs? Cutting down on these costs is one of the reasons why people turn to solar.
Solar panels offer energy savings and a host of other benefits. You’re lowering your carbon footprint, which can help combat climate change.
No matter what your reason is, you need to know the solar panel installation costs to make sure you see cost savings down the road. Read on to learn the cost to go solar and how to figure out an installation’s ROI.
Solar Panel Installation Costs
The costs of solar panel installation vary by thousands of dollars. You have to consider the size of the home, the location, the types of solar panels used, and the installation company.
That’s why you’ll see a broad range of $15,000 on up. There are a number of ways to finance the project. You could pay with cash, refinance your home, or take out a home improvement loan.
A good solar panel installation company will walk you through the steps of the installation, and they’ll work with a variety of manufacturers. This will help you find a project that fits your needs and your budget.
You can lower the cost of your solar panel installation by taking advantage of state and federal tax credits and rebates. If you want to get federal tax credits, now is the time to act.
The Residential Renewable Energy Tax Credit gives you a tax credit of up to 26% of your solar panel installation costs. If you put off the project, your credit will drop to 22% after December 31, 2020.
The tax credit will disappear after December 31, 2021. Congress could decide to extend the tax credit, but that’s not likely at this time.
Don’t forget to see what your state offers, too. Your installation company should have a firm understanding of what is offered by the state. South Carolina offers a few options depending on whether your installation is for a commercial or residential building.
ROI of Solar Panels
Are you installing solar panels to save money on installation costs? You want to figure out if and when your solar panels will deliver a return on investment.
There are a couple of ways to look at ROI. You can look at your energy savings from month to month. This will largely depend on the amount of power the panels can store. The more power a panel can store, the more they can cost to install.
You can look at the ROI of solar as an increase in home value. This is important if you plan to sell your home in the next few years after installation.
Installation of Solar Panels: Make Them Worth It
You have to know the solar panel installation costs to decide if it’s a smart move for you or not. Start by working with solar installation companies to get an idea of the costs.
Then you can weigh the tax rebates, credits, and additional savings along with the continuous savings and increase in home value.
For more great home tips, check out the Home Decor section of this site.