At the lower end, you can install a. The national average price of a 6 kilowatt (kW) solar energy system is about 10.55 cents per kilowatt-hour. For context, residential solar panels typically range in size from 3 kW to 8 kW. This is before considering potential tax incentives and refunds.
But what does all of that really mean? Let's break it down into what solar energy could cost your home. The amount of energy used by your home will determine the amount of solar panels you'll need to install to offset your energy costs. Homeowners can look at their electricity bills to calculate their average daily energy consumption and compare it to the number of panels that would be needed to generate all of their energy needs. The amount of sun exposure your home receives can affect the amount of energy solar panels absorb and, in turn, the amount of money you can absorb from your existing electricity bills.
Where a homeowner lives can affect the local installation rate, as well as the number of incentives and rebates available in the area. Compared to other home improvement projects, solar panels are a relatively high-cost project. But, in turn, they can increase the market rate of a home and, eventually, offset electricity bills. In general, solar panels begin to pay for themselves in small increments during the first year.
Homeowners can expect broader amortization compensation between five and 15 years, depending on the configuration and where you live. Homeowners use solar energy in different capacities in all 50 states, but some inevitably perform better than others. That's why where you live can be a critical factor in deciding if your home is a good candidate for solar energy. To start calculating your own costs, see our table below.
Find the square footage closest to your home and see the range of panels you may need and the cost of those panels. The panel number varies depending on whether you live in a state that is better or worse for solar energy due to the weather and whether or not you want to compensate for all or only a portion of your electricity needs. See “How Many Solar Panels Will You Need? below for more information. To find out how many solar panels you'll need, you'll want to determine how much electricity your home consumes on a daily basis.
A solar inverter will need to be installed to transform the direct current (DC) power from the panels into the alternating current (AC) that you can use in your home. The average household uses 905 kWh per month, or about 10,850 kWh per year, in electricity. That means an average-sized home with a decent amount of sunlight could install a 5 kW to 6 kW solar panel system to help reduce utility bills. You may want to learn about the sun number score for solar energy, which is calculated based on the location of your home and the average exposure to sunlight.
Also, explore the different dimensions and sizes of solar panels with your contractor for more context. On the other side of the coin is the resale value of your home. A Zillow analysis showed that solar panels can increase the value of a home by up to 4.1 percent. Simply put, if your home can take advantage of net solar metering, solar energy that is abundantly collected and not needed in your home will go through your meter and go on the grid.
A digital meter in your home records electricity moving in any direction as you enter the house and when you leave. The “net share” of the term means that the homeowner pays the “net amount” for the electricity used by the home minus the extra sold to the grid. There are several payment options that group solar installation costs into the consumer's electricity bill, either as a solar panel lease option or as a power purchase agreement (PPA). Solar leases allow the homeowner to install solar panels without paying anything (or much) upfront, reducing the total cost of solar panels.
After installing the panels, the landlord pays only a fixed monthly fee. The fee includes installation costs, which are distributed over time, and the cost of supplying electricity. It's worth noting that, in most solar leasing agreements, the solar company generally maintains the incentives associated with owning solar panels. But the consumer gains other advantages.
The solar energy company may offer a monthly charge below the utility rate, or one that doesn't increase like utility rates do. At the end of the contract, homeowners can renovate, purchase the system, or have the equipment removed from the solar panel. If you decide to sell your home, having solar panels leased may work against you, as you would have to transfer your lease to a qualified buyer, which means, of course, making sure that the person making an offer on your home is qualified in the first place. Many homebuyers would prefer not to deal with that extra paperwork, which means that homes with solar leases stay on the market longer than homes in which solar panels are owned.
Solar energy may be simple in concept, but in application, it can be disconcerting. And the best approach for one homeowner isn't necessarily the best approach for another. Take the time to gather relevant information about home size, local solar insolation, existing electricity rates, and consumption. Is it worth it to calculate the potential cost of solar energy for your home.
Solar panels can not only power your home's electricity for appliances, but they can also be installed for other benefits, such as heating and cooling your home with solar energy, heating water with solar energy, and even heating a swimming pool with solar energy. Solar panels generate “free electricity”, but there are still costs associated with their installation. But, even if your solar panels switch between the electricity of your solar panels and the use of National Grid energy, you will certainly consume less electricity and pay lower bills. In addition to federal tax credits for solar energy, many state incentives also reduce the financial burden for homeowners who want to use solar energy.
By combining federal and state incentives, homeowners can save up to 50 percent on the cost of solar panels. If your solar panels are large enough, you may be able to produce enough electricity for your entire home. In turn, the more electricity costs you want solar energy to absorb, the more panels you need. In principle, determining whether it makes financial sense to install solar energy for your home is simple.
One of the most important considerations is the levels of solar irradiation available in the geographical location of the house; in other words, how sunny is the place where you live. SunPower has a network of reliable installers for your solar system, solar panel and electricity needs. However, the state still ranks seventh in terms of solar energy adoption, and the Association of Solar Energy Industries estimates that it will see nearly 2,000 megawatts installed in the next five years, so prospects for solar growth in GA are good. Federal investment tax credit allows homeowners to save up to 26 percent on installing a solar panel system in their homes.
If you live in an area with high energy rates and an appropriate solar rating, and if you can afford the initial investment, it's worth installing solar panels in your home while the 30% tax exemption applies for the good of the environment and your pocket. You can calculate the return on investment for installing solar panels by calculating their total amortization. . .