Homeowners today are well aware of the rising costs of running a household. Despite your best efforts not to waste energy, utility bills keep going up, you might have even checked out an energy comparison site like Usave to help you out but still you find that your utility bills are too expensive. While we might find ways to reduce consumption, why not make changes that will improve efficiency overall and go for a long-term investment that will save you money? After all, by relying on electricity with just a flip of the switch, it’s difficult to keep up when the basic costs for fossil fuels are growing steadily.
Experts agree that solar energy makes sense for commercial and residential property owners alike. Reading about $0 down offers for a solar energy array almost seems too good to be true. Start by thinking of solar power as an exchange of your utility bill for loan repayments; you will pay off your solar array within a couple of years, whereas utility bills will keep coming.
There is no shortage of information out there about the benefits of renewable energy. Applying all of this knowledge to your home will help you determine how investing in solar will affect your family in years to come. Here’s how you can save on your electric bill with solar panels.
The cost of a solar PV system is the most frequently asked question, but the answer varies for everybody. Your property’s unique energy needs will dictate the minimum recommended system, although you can go bigger if you have the room.
To ‘ballpark it’ look at your past electricity bills and sum up your average usage in kilowatt-hours; that figure will determine the ideal number of panels your electricity generation will need. Most residential systems range between $15-30K, which is too broad a figure to make a usable budget. It’s best to get an estimate from a reputable company.
Solar energy potential maps help you to reasonably predict how much free energy your system will take in, or you can ask a professional who will provide an estimate that takes into account the many variables that determine amount of electricity generated. In some cases, even if your system overproduces energy, the unused portion is fed back into the grid after which you will be credited by your power company!
There are so many variables, but free energy is a constant in the equation. While one family with high usage could require partial power, another family could produce excess wattage and receive a check from the power company.
Lower Electric Bill With Solar Panels
Financial benefits come in more than one form of savings. In addition to lowering your monthly electric bill with solar panels, you could qualify for other incentives and your family will enjoy one of the cleanest forms of energy there is! According to Nerd Wallet, a 3kW system that generates approximately 450kWh per month could slice your electric bill by half.
The US is working towards clean energy by offering solar energy incentives. The federal investment tax credit will offset a considerable portion of your home’s renewable energy purchase. You can claim 30% of the cost of your solar installation on your federal taxes. This program covers both parts and labor, including on-site setup, assembly, and connecting all of the components. Check for local initiatives and state-sponsored energy incentives too.
The federal tax credit still applies if the property is not your primary residence. Deductions for a residential solar array can be spread out over multiple years if need be. Originally set to end in 2015, the full credit for solar projects has been extended through 2019, after which the credit drops incrementally until it is phased out.
Solar Renewable Energy Credits
Solar Renewable Energy Credit (SREC) is a program created to encourage green energy projects. States are motivated to produce more green energy, and they enlist participation by issuing credits to individuals and companies for their contributions. Each watt of solar energy your property generates is metered by the public utility company. You’ll receive certificates for all of your solar electricity production, even if your home consumes it. Sell your SRECs on open market or broker a private arrangement even while your loan is in repayment. Your solar installer should help with making those arrangements as part of their turn-key installation offer.
Increased Property Value
Remember, when evaluating the costs and benefits of reducing your electric bill with solar panels, look at the bigger picture. Expect the value of your home to go up by tens of thousands of dollars with a solar array.
Stop wondering what else you can do to chip away at your monthly energy costs. With solar energy, you won’t be deterred by the upfront investment if you take the time to figure out how the numbers will play out. Reframe your whole relationship with your power company by collecting your own electricity from the sun.