Yes, solar energy is good for the environment. Yes, by installing solar solar with a battery backup, you can be energy independent and not rely on the power company for electricity again.
But, let’s face it. The decision to go solar or not for many comes down to money.
Solar panels are not cheap. So, if you’re going to put up the dough to get solar panels for your home, you want to know if that’s a smart way to spend your hard-earned cash.
Below we’ll answer a question on the mind of many thinking about making the switch to solar… are solar panels a good investment?
Before we dive into this, we want to make the disclaimer that your mileage (or wattage, as the case may be) will vary. Your situation may be different, so you’ll have to do your own research to see if solar is a good investment for your home and family or not.
However, the overview below will help you learn about the key things to consider when thinking about whether solar makes sense for your home.
Are Solar Panels A Good Investment?
The short answer to that is, in many cases, yes. Solar panels are definitely a good investment. Solar panels have many benefits, making them a very good investment, especially over the long term.
Right now, energy prices are rising. A lot. If you already have a good-sized electric bill each month, it’s almost a certainty you’ll be paying a lot more in the years to come.
At the same time, solar panel prices have fallen quite a bit over the last 5 – 10 years. Not only that but there are still nice solar tax credits and incentives available that bring the cost down even more.
So, from a financial standpoint, getting solar panels makes economic sense for many homeowners over the long term.
Especially for those who are already spending $100 or more a month on their electric bills. And the higher your electric bill is, the more an investment in solar is likely to pay off for you sooner rather than later.
How Long Will It Take Your Investment In Solar To Pay Off?
Now let us take a look at how long it will take for solar panels to pay for themselves. There is not a set answer for this. It depends on a number of different factors. In some areas and situations, panels can pay for themselves in 5 years or so. In others, it can take closer to 15.
Here is a list of the main factors that go into determining how quickly an investment in solar will pay off…
- The initial cost of the solar panels and installation
- What incentives and tax credits you qualify for
- What state you live in
- How much electricity you use
- The efficiency of your solar panels / how much sun your roof gets
- Changes in electricity rates
When Solar Panels Are Not a Good Investment
The truth is that not every home is a good fit for a solar panel system. As great as they can be, they don’t make sense in every situation.
In situations where your roof doesn’t get much sunlight, you’re planning to move soon or your electric bills aren’t very high, the cost of installing solar may not be the best investment.
(To see more situations where solar panels don’t make sense, check out our article “Don’t Buy Solar Panels: 9 Reasons Not To Go Solar)
With rising electricity costs, an unreliable energy grid, and falling prices for solar panels, they make for a solid investment in many situations.
If you want to get a better idea of how much you can save by going solar, what incentives you may qualify for and to see if it’s a good investment for you, fill out the form to access the solar calculator at UnderstandSolar.com.