The rising cost of commercial electricity made many people from the U.S. switch to solar. The reason? Solar panel costs may be more sustainable and efficient in the long term.
In fact, more American households have switched to solar in the first quarter of 2020, with 1.98 GW. That’s 65% higher than the total solar panel installation rate in the first quarter of 2019.
Despite the promising benefits of using solar energy, there are still endless discussions about the real solar panel cost.
This year, the average cost of solar panels in the U.S.range from $11,144 to $14,696 after federal tax credit. The average cost per watt ranges from $2.51 to $3.31.
Although incentives such as solar tax credits and rebates motivate households to take advantage of solar energy, the truth is, the long-term value of solar panel installation highly depends on many factors.
Are solar panels really worth it? Our guide will help you escape the marketing hype and determine if you’re getting the benefits you’re paying for.
[Related: 5 Facts About Off-Grid Solar Systems]
Tips to determine if solar panel system installation is worth it
1. Review Your Electric Bill
Your current electricity bill is an essential factor in determining your savings once you’ve installed a solar system in your home.
The higher you bill, the higher you’ll benefit from switching to solar energy. The national average cost per kilowatt-hour is 13 cents.
You can use an online solar calculator to determine your solar panel installation costs and savings.
2. Your Solar Panel Cost
Determine how much your prospective solar panels cost. The installation prices vary depending on your chosen solar company and equipment. The quantity of panels needed is a determining cost factor too.
Review every equipment options carefully, and choose the best ones according to their price, quality, and the functionality of your home.
Take note also of the solar incentives and rebates in your state. The 26% federal solar tax credit for residential, commercial, industrial, and utility-scale projects has been extended until 2022.
In Arizona, the benefits of purchasing solar systems are likely to outweigh your investment costs.
The Arizona Solar Tax Credit lets homeowners enjoy a $1,000 state tax credit for their solar purchase. To qualify, your solar system has to be installed and commissioned before the end of the tax year you’ll file it for.
[Related: Solar Panel Repair Cost]
3. Your Financing Methods
Your financing options – whether to pay in cash or low-interest financing – can make a huge difference in your long-term savings.
Paying in cash can help you save more than with other options since you don’t have to pay any interest charges. However, if you don’t want to touch your savings, you can opt for solar panel financing.
Financing solar panels allow you to own your home solar system, enjoy lower monthly electric bills, and qualify for federal and state solar financial incentives all at the same time. Many lenders today will allow you to finance the total amount of your panels without any down payment requirements.
Install Solar Panels In Your Home Now!
If you’re among the thousands of household owners suffering from high electricity bills monthly, investing in solar panel systems will likely be worth it.
Just make sure to research and review all other factors carefully before switching to solar. Once you’ve determined your solar panel cost and savings, consult a licensed electrician to help you install the system.
If you need help with your solar panel or any electricity concerns in your home, Assurance Electrical Services is here for you. Contact us today for more information!
Got any questions about solar panels? Ask them away in the comments section below!
Jeff Brandlin is the founder of Assurance Electrical Services, LLC. He started in the electrical industry when he was 21 and had worked in several electrical firms before founding Assurance Electrical. Jeff is dedicated to providing the best quality service to his clients and always puts their needs first. Outside work, Jeff enjoys spending time with his wife and children.