Investing in Solar Panels: The Financial Benefits
Solar panels are an amazing invention for a world where fossil fuels are at depletion levels. While several people, communities, and commercial estates are thriving on solar power, there are some apprehensions about its use. Are solar panels worthy of investment?
Hesitation about the use the sun’s power
From the looks of it, solar energy is truly a lifesaver for fossil fuels. However, many people have apprehensions about using solar energy. Firstly, solar power is dependent on the generous source of sunlight. What does this mean for people who live in areas or regions where the sun doesn’t shine as much?
The equipment required to store the sun’s energy requires buying solar batteries. A single lead-acid battery costs between $200 and $800. At the same time, a residential lithium-ion solar system costs $7,000 to $14,000.
The installation of solar panels requires a huge sum of investment. A consumer can expect an average of $18,000 for a complete solar setup. And this cost accounts for before adding up any incentives and the federal solar tax credit.
There are various other questions surrounding the use of solar panels and whether they are worthy of investment. Today, we bring to you the financial benefits of investing in solar panels.
The ROI of solar panels
Do you plan on buying solar panels for your home or commercial complex? It’s essential to understand the returns you will get after installation and use of solar panels.
Divide the profit earned on an investment by the cost of that investment to understand the value of the returns you get. The payback period will help you understand how much you'll be able to make up for the initial solar energy investment.
Let’s look at how you can financially benefit from using solar panels. Once you go solar, there’s no going back!
Typically costing an average of $16,000, the cost can range between $3,500 – $35,00. The cost depends on the type of panels you choose, the quality, and the number of panels. Homeowners can save money or break even on a solar panel investment by net metering and gaining from tax incentives.
- Saving on power bills
Since you rely less on the grid, your power bills are going to go down drastically. Your utility company will bill you as often. Of course, this depends on your solar panel setup. Seek professional advice and strategic installation to make sure you get sufficient ROI.
- Net metering and compensation
The process of net metering refers to giving system owners the opportunity to gain extra revenue. This is done by selling the excess power to the grid while making up for the shortfalls via the grid. So, if the amount of power supplied is higher than the amount of power consumed, then the owner gets compensated for the excess amount.
Thus, net metering can save you money or help you break even in terms of solar panel investment.
- Solar tax incentives
You get tax incentives when you invest in solar panels. These tax incentives can help save you money or break even on the investment. You can receive a 30% tax credit for installing a photovoltaic system between 2022 and 2032. You can receive a 26% tax credit in 2033 and 22% in 2034 through the Federal Tax Credit for Solar Photovoltaics.
The factors that can affect your ROI include solar panel installation, payments for inspection and installation permits, maintenance and repairs. Another factor is if you reside in a region with limited sun exposure and cloudy weather conditions. You’ll have to invest in solar storage batteries, which work by storing the sun’s energy. The stored energy is then used at night or whenever the sun’s energy is not available for use.
Remember that solar panels work best between 59- and 95 degrees Fahrenheit. Placing them on a south-facing rooftop, tilted between 30 and 45 degrees can work to ensure efficient application of the sun’s power.Need a professional to review your place for solar panel installations? Reach out to Beyond Solar for quote enquiries and more.