Over the past decade, the cost of solar system installations have dropped almost twice. Solar energy usage is becoming more popular and valuable to invest in.
Solar Power Systems
There are two different types of solar power systems: solar systems for businesses and residential solar systems for homes. Commercial solar systems are designed to power companies or large residential locations. Therefore, the cost of these systems is high. While, residential solar systems need less area, cost less and can generate savings for any homeowner.
What Do Solar Panels Cost and Are They Worth It?
Solar panels on your roof or in your backyard is the best decision taking into consideration the rapid development of the solar industry. The rising cost of electricity from traditional sources is another reason to go solar.
The cost of solar panels depends on size and type of the solar system. Most solar power systems do not require much maintenance. They have warranty and are designed to function for more than 20 years. Then you need to understand what size of solar panel system is required to generate enough power for your needs.
The cost of solar electricity ($/W) indicates how many dollars solar will cost per watt of available electricity production. The cost is between $3 and $5 per watt. The installation and the system together on average will cost you in between USD 15,000 and 25,000. This amount still doesn’t include any tax credits and rebates.
So, before making your final decision, you should research a few solar installation companies and get quotes from different contractors to compare and review.
Planning A Home Solar Electric System
Learn about your electricity bills, your home location, and the availability of incentives.
The electricity produced by solar panels can help you decrease your electricity bills, and sometimes even eliminate them. With changes in electricity consumption, your savings will change as well. The more electricity you use, the more you will benefit from going solar.
Your bills will also vary depending on your location. The national average price is 13 cents per kilowatt-hour. In Texas, it was 8.48 in the year 2019. With more sun you have a greater opportunity to save more money.
Money in the Wallet
The location and orientation of your home are also important. The amount of shade and your roof type will as well affect your system and, therefore, your bills. You can use the Pick My Roof platform to estimate the efficiency of your future solar panel system. Just enter your address, the average cost of your monthly electricity bills, and your energy provider.
What for incentives, the government of the United States offers different incentives when installing solar systems. Depending on your state, there are incentives like property tax exemption, cash back and expedited permits. It is also possible to sell the excess energy produced by your solar panel system to your utility company.
The federal solar tax credit (ITC) is one of the most important federal incentives in the United States. It has been running since 2006. The Federal Investment Tax Credit for qualifying solar energy systems is currently 26%. In 2021 it will drop to 22%. The program will utterly expire on December 31, 2021.
You can do some research and find more information on the specific Policies and Incentives in Texas State here.
A Solar-Powered Home: Will It Pay Off?
Despite many advantages of installing a solar power system, the cost of installation and maintenance is still high.
The solar-powered home system consists of solar modules, an inverter, metering equipment (it shows how much power is generated), various components with cables and wiring gear. In addition, you can get a battery storage system which is expensive but can be used to power your EV car or store the excess electricity in case you have no possibility to sell it back into the grid. You should also consider the labor cost, and further costs of system maintenance and cleaning of the panels.
Once, you have calculated all the possible costs, you should remember that going solar is a long-term investment and it will guarantee you from future potential fluctuations in energy costs.
Author of a publication: Irene Abgaryan
