Did you know that it takes between 20 to 25 solar panels to power a home? Many homeowners have decided the cost-saving benefits of solar panels are worth the upfront expenses.
But why are solar panels good for saving money as a long-term investment? Is solar panel installation really a smart decision?
The following guide will explain several benefits of going solar that save both energy and money. Read on to learn about this affordable and eco-friendly energy option.
Upfront Solar Cost
First, we need to talk about the upfront costs of installing a solar power system for your home. The national average for solar installation is between $15,000 to $21,000.
The initial cost might seem high but there are significant tax benefits of solar panels. For example, there is a federal tax credit that covers 26% of total costs. Different states offer rebates to lower solar costs even further.
Be aware that the federal tax credit is supposed to lower to 22% in 2023. Consider installing solar panels during 2022 to maximize their value.
Monthly Savings
Solar panels allow you to save money every single month. Using less energy will lower your utility bills substantially.
Monthly savings will eventually cover the upfront costs. It takes about 7 years to recoup a system that costs $11,000. It takes about 12 years to break even on more expensive systems in the $26,000 range.
Net Metering
Net metering is a huge benefit of installing solar panels and contributes to monthly savings. It credits solar power system owners for any excess power they supply back to the grid.
For example, you have solar panels on your roof they might generate more electricity than you require each day.
Home Value
Installing solar panels raises the value of homes. Some states make these increased values from solar installation completely tax exempt.
Solar power is only becoming more popular and it’s a very attractive home feature for buyers. You will still recoup some costs when it’s time to sell even if you move before paying off your system.
Financing Options
Most personal loans for solar panels are unsecured. This means that collateral isn’t required for approval. However, interest rates are typically higher for this loan type.
There are also government loan options for solar installation. These loan programs usually require a credit score of at least 660. Government loans also require a debt-to-income ratio of 45%.
Home equity loans are another common option when switching to solar. Basically, you borrow money from your home’s equity to pay for the system. Most banks finance up to 85% of your home’s equity.
Home equity loan amounts depend on the value of your home and how much you still owe. The best things about these loans are their low-interest rates.
Why Are Solar Panels Good for Your Wallet?
So, why are solar panels good for saving money? Panels lower monthly bills, raise home values, and can even produce revenue through net metering. Consider investing in solar and start experiencing these savings benefits!
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