Most homeowners from Tucson to Phoenix understand that by installing solar panels on their home they’ll be drastically reducing, if not completely eliminating, their electric bill for decades to come. The biggest hurdle then becomes what many perceive to be the high upfront costs to purchase and install panels. Most people are worried they don’t have the kind of money necessary to convert their home energy to residential solar energy.
As solar energy continues to rise in popularity, it’s worth looking at some actual numbers: Are solar panels worth it? How long does a solar panel take to pay for itself? Let’s see if we can answer those questions using real figures to determine if investing in a home solar system is right for you.
Doing the Math on Solar: What Can You Save and How Long Will It Take?
A 6 kW solar PV system costs an average of $18,000 to install. If you took full advantage of the current federal solar tax credit (read more about this tax credit and how it may change soon here), 30% of that cost—$5,400—could be deducted from your federal taxes due, lowering the upfront cost to $12,600.
If solar installation reduces your electricity bill by $100 per month, you’ll see annual savings of $1,200. $12,600 divided by $1,200 is 10.5 years. So, how long does it take to break even on solar panels? Using this conservative example, in a little over a decade you’ll have completely recouped the cost of adding solar to your home.
*Of course, actual savings and pay-pack period will vary depending on each home’s energy usage and the size of the solar PV system.
Continuing the Math: How Much Longer Will You Be Getting Free Energy?
How long do solar panels last? Your solar installation will continue providing renewable energy for your home for an average of 25 years before they would need to be replaced, so you would save $17,400 over the next 15 years (25 years - 10.5 years = 14.5 years x $1,200 savings per year = $17,400).
And $17,400 is just the starting point for your savings. Additional factors that could save you even more include:
The rising cost of electricity
Increased property value
Upgrade Your Home with Energy Solution Providers
Looking for even more options to make solar power savings a reality? From Arizona solar tax credits to solar financing with Koala Financing Group, we can help you find a way to make solar work. With solar panels, the energy savings your home will realize make the upgrade to renewable energy a no-brainer. For a trustworthy solar provider near you, get in touch with Energy Solution Providers.
Upgrade to solar today and you could break even sooner than you think. Call 520-868-0700 or contact us to get your solar estimate.