Are you on the fence about converting your home to solar energy? If so, we completely understand.
On the one hand, solar is the way of the future. Fossil fuels are running out and solar energy is much better for the planet.
On the other hand, however, you need to think about how much the solar panels cost. How much will your entire system and installation run you?
We’re here to cover the basics. Keep reading for a quick breakdown of the costs and savings of going solar.
How Much Do Solar Panels Cost?
Naturally, one of your biggest concerns is how much it will cost to create a solar-powered home. Throughout most states, it costs roughly $13,000 to build a 6kW system. Generally speaking, these systems are big enough to power an entire household effectively.
However, how much your solar panels cost depends on your energy needs. For example, if you’re not looking for a system big enough to power your whole house, your costs will be much lower.
How Much Can You Save By Using Solar Energy?
Now, let’s look at another major factor. How much money can you save (and earn) by switching to residential solar power?
Once again, this depends on the size of the solar system you install and what state you live in. Different states offer different types of incentive programs. Here’s a closer look.
Energy Savings
Obviously, by using solar energy to power your home, you’ll no longer be reliant on the power companies for electricity. For most people, this means saving at least $100 a month. If you extrapolate that out 10 years, that’s $12,000 in your pocket.
State Rebate Programs
Next, when looking at how much your solar panels cost, you can find peace of mind knowing that your state most likely offers several programs to help you earn money through your system. For example, some states do net metering. Net metering monitors your energy production and rewards you cash for varying levels of productivity.
Additionally, some power companies will buy unused energy back from you. If you create excess energy, they will buy it from you with cash or with credit. Look here for a more in-depth look at the savings you would gain access to in Colorado.
Federal Tax Incentives
Finally, all homeowners are eligible for federal tax savings when they invest in residential solar power. Throughout 2022, homeowners can report how much their solar panels cost, in addition to installment fees, for a 26% tax credit.
Using the numbers from above, if you invested in a 6kW system for $13,000, that means getting $3,380 back on your taxes.
Is a Solar-Powered Home Worth it to You?
Through federal taxes, state incentives, energy savings, and all the other benefits not listed in this article, switching to solar is a clear choice. Just make sure you understand how much your solar panels cost and budget in your expenses. Then, sit back and get ready to save.
And if you’re looking for more homeowner tips or consumer insight, you’re in the right place. Check out some of our other articles to find more content created for people like you.