The upfront cost of installing a solar energy system in your home can be expensive which is why many homeowners never consider the possibility of pursuing an alternative energy source. In reality, however, switching from electric to solar power can offer a number of substantive financial benefits, including the three covered in this blog. Let’s review some of the ways homeowners stand to earn back the cost of their solar panels.
The cost of electricity is prone to fluctuation, which makes your energy bill from month to month very unpredictable if you aren’t using solar power. The one constant when it comes to electricity prices is that they’re high—electricity is expensive! The average American household would stand to save approximately $125 per month on their energy bill if they switched from electric power to solar energy.
Since the typical solar panel system lasts a quarter of a century, that means that every month, every year, for twenty-five years, you’d save $125. Accounting for the continued escalation of prices over time, this means that over the course of 25 years, you would stand to save over $40,000 on your energy costs. The savings add up!
The United States federal government offers a tax incentive of up to 26% for homeowners who install solar energy systems. This essentially means that the federal government will offer a credit, akin to a tax rebate, to subsidize the upfront cost of installing solar panels on your property. However much you pay for your solar energy system, you’ll receive just over a quarter of that amount back as a tax credit.
Certain cities and counties may offer additional financial incentives to individuals who equip their private residences with solar panels. For example, Philadelphia has a solar rebate program which dictates that Philadelphia residents may qualify for a $200 rebate for every kilowatt of solar power they produce using their solar energy system.
Renewable energy production credits are another significant financial incentive offered to homeowners who have installed solar panels. This program grants you the opportunity to earn net metering credits for the renewable energy you produce. This means that if you produce excess renewable energy that is not needed to power your home and its devices, that energy will be rerouted into your local power grid. Each megawatt of power that your system generates over the course of a year will earn you one energy credit.
In the general area that Bright Eye Solar services, a standard system will typically produce approximately twelve energy credits on an annual basis. The going rate for these credits is about $40 to $80 apiece, which amounts to in earnings $480-$960 per year.
Our team of sustainable energy experts is available for consultations. Contact us today to review your financial and energetic options.
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