Wondering whether solar panels are worth the cost? The upfront fee when you install solar in your home, the upfront fee can be exorbitant. We’re talking in the range of $15,000 to $25,000 for a small 5-kW setup.
But you needn’t pay so much.
If you have the right information, you can knock 26% off that price tag. Even if you had to pay full price, the numbers show that installing solar might still be the best financial choice for you and your family. When you’re ready to discover the reasons why people in Texas are installing solar in 2021, so you can save money yourself, read on.
Solar Panels and Global Warming
The effects of global warming have put unprecedented amounts of strain on the power grid in Texas. That strain has caused both summer and winter Texas blackouts. And if expert climatologists are to be believed, global warming shows no signs of ending any time soon.
That translates to more power outages and further strain on an already struggling power grid. Going solar can help. If you install solar panels in Texas homes, you’re powering air conditioners, heaters, refrigerators, and lights.
You’re reducing the load those power grids need to deliver because you’re absorbing solar energy and producing the power on your own property. Sure, this gives you power when the rest of your city suffers a blackout. You also play a small role in reducing our nation’s reliance on fossil fuels and nuclear energy.
Tax Credits in Texas
If you want to install solar panels in Texas, two things might dramatically reduce your costs. They are state and federal incentives for using solar power.
At the federal level, you have a federal solar tax credit. You can claim this credit on your income taxes this year to reduce the amount you owe the IRS. This is how much your solar panel installation credit is worth:
- 2019 – 30%
- 2020 – 26%
- 2021 – 26%
- 2022 – 26%
- 2023 – 22%
If you install solar this year or next year, you can claim a federal tax credit equal to 26% of the installation fees. Some states also offer state tax credits to incentivize residents. Unfortunately, Texas offers no such credit, but that doesn’t mean you are completely out of luck.
Local companies are taking up the slack. Austin Energy, CPS Energy, Guadalupe Valley Electric Cooperative, and the City of Sunset Valley are just a few such companies. Each offers different incentives to help homeowners cover those costs.
Other folks, like those at https://blueravensolar.com/texas/plano/, offer unique ways to manage the upfront expenses. One example is a deferment or $0 upfront cost. Another option is to lease rather than purchase solar equipment.
What’s Next?
Now that you know why your neighbors are installing solar panels, it’s time to decide whether they’re right for you. Start by calculating how many kW your home needs. Then calculate how much that would cost after you subtract tax rebates, and you can determine how much it will save you over the next 20 or 30 years.
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