Do solar panels save money for the homeowners who install them?
Or is that just something the solar industry and local installers tell people to get them to go solar?
While solar panels have been around for a long time, many people still don’t know all that much about them.
And this sustainable technology has changed a lot over the years. So what was true about them even just a few years ago may not be true today.
There are some great benefits to going solar…
If you get a battery backup with your system, you can avoid power outages if the electric grid in your area goes down.
They produce clean, green energy to power your home.
And they can even increase the value of your home.
But the upfront costs of solar are still fairly high (though they are WAY cheaper than they used to be). So, if you invest in solar, will you save money? Read on to find out if that’s the case or not.
Do Solar Panels Save Money?
The short answer to that is yes, solar panels generally save you money. Sometimes a lot of it.
Solar panels save you money in a lot of ways.
First and foremost is the ability to dramatically cut down on how much you pay for electricity each month.
And as electricity costs are rising across the country, installing solar should just save you more and more over time.
In places like California and Texas, where electricity prices can be pretty high, the savings homeowners get from solar can add up.
Let’s look at an example from California. A 6kw solar panel system will average around $14,000 in the state. However, it’s estimated that having solar on your roof will save the average Californians a little under $50,000 over 25 years.
Over the lifetime of the solar panels, that’s some BIG savings!
(Note: It’s said solar panels have a lifespan of 25 years. They’ll still work 25 years down the road; however, they may not be as efficient as they get older.)
In California, it only takes about 5 – 7 years for the average homeowner to recoup their initial investment in solar through their electricity savings.
Solar Tax Credits
Homeowners can also save on the upfront costs of solar through tax rebates and available incentives.
The federal tax credit for solar was due to sunset in 2024. However, the Inflation Reduction Act of 2022 extends the federal tax credit for 10 years, and the amount of the credit increased from 26% to 30%. (If you installed solar in 2022 before the Act was passed, you will still be eligible to get the 30% tax credit.)
This will help homeowners save even more on the costs of installing solar panels (whole home batteries are covered, too!).
Increased Home Value
This isn’t technically a way to “save” money with solar. However, having solar panels on your home can increase your home value.
One study by Zillow found that homes with solar panels sell for 4.1% more than homes that don’t.
Bottom Line
If you’re looking at solar as a way to save money, you’re in luck. Unless you have little roof space or your home is surrounded by trees that block the sun, solar will almost certainly save you money.
The only real question is how much. To get the answer to that, we recommend talking with a few trusted local solar installers that can help you figure out how much you can save. You can quickly get in touch with top installers in your area by clicking here.
