With so many trendy investment opportunities available in today’s day and age, it’s easy to be skeptical of new products that boast promises of “saving you tons of money.” Solar panels are no different – saving money by reducing your electric bill is one of the main appeals and selling points for solar as a product and home upgrade. The simple answer to the question “do you Save money by going solar?” is yes. That being said, how much you’ll save depends on a number of factors. Direct hours of daily sunlight and the size and angle of your roof are both important, but local electricity rates play the biggest role in determining how much solar system can save you.
When you install solar panels on your roof, you are essentially turning your home into its own mini power plant. You generate renewable energy, reducing or eliminating your electricity costs altogether by going solar
Save money by going solar are depends on two simple factors:
- The price you currently pay to buy electricity from the grid
- The price you’ll pay to generate your own electricity with solar
Generally, the rule of thumb is if your electricity costs are higher than your solar costs, you’re going to see savings by switching to solar.
Regardless of going solar or not, you will continue to make an electricity payment every single month for as long as you require electricity – or until your solar purchased solar system is paid off. In turn, utility companies will continue to raise their rates year after year, and your costs will continue to increase. The grid will continue to fluctuate and electricity costs will peak at unexpected moments over the course of a year.
With solar, you avoid these issues by taking control of your costs. Instead you’ll pay a fixed monthly loan payment with an end date and eliminate your electricity bill completely! Once your loan payment is over, you’ll be generating your own renewable energy for free. Wouldn’t you rather put your money towards paying off an investment that’s adding value to your house at the same time as reducing or eliminatingyour electric bill and netting you savings right away? no brainer, right?
Of course, there are other factors included in the equation of how much you’ll be able to Save money by going solar such as your roof’s sun exposure and structural limitations, how much energy you use, and your zip code.
And the best reason to Save money by going solar is that The homeowners will get 30% tax credit, many of whom still view solar as beyond their financial reach or as a resource still unproven. Costs for home solar systems continue to plummet. Since the solar and wind Investment Tax Credit (ITC) was implemented in 2006, the cost of installing solar has dropped by more than 73 percent, according to the Solar Energy Industries Association. And the 30 percent tax credit for solar under the ITC, set to expire at the end of 2015, has been extended by Congress for an additional three years, followed by a two-year ramp-down period.