Did you know a solar roof could end up paying for itself? Discover what costs & benefits to consider when going solar to see all the ways you’ll save!
While solar panel systems may seem to have a high overall cost, solar energy’s long-term savings and numerous eco-friendly benefits far outweigh the system installation fee. Additionally, solar panels are low-maintenance, requiring almost no cleaning or repair costs over time.
Your specific solar installation cost will be different depending on your property. Still, it often ranges from $30,000 to $70,000 and varies depending on factors such as your home’s square footage, the amount of shade you get, the roof’s age, and more.
But with continually rising electricity prices and the social movement to be more sustainable, many people are saving more than just dollars and cents with solar, but the environment with increased sustainability and energy independence.
So let’s discuss what factors to consider that contribute to the true cost and total savings you’ll experience in the long run with solar.
The size of the system you’ll need will be a significant factor in the installation cost, the highest cost of solar. Your contractor will determine the size of your solar panel installation based on your monthly electric usage and how much you’ll need to generate as well as the best solution for your roof’s structure.
Monthly Electricity Bill
With increasing utility bills, the ability to generate your own electricity with solar panels via the sun’s radiation is a great way to harness affordable energy. Most people who suffer from high electricity bills will save big when the long-term usage cost is more expensive than the overall price of solar installation. A solar panel system will last at least 25 years, so you can calculate how much you’ll save by comparing your expected electricity costs for 25 years to the overall solar panel installation cost.
View monthly electricity costs by state to determine your usage costs.
Account for Sunlight
When thinking about the overall cost and savings involved with solar, it’s important to consider the direction your home faces and how much sun it receives. Whether your roof soaks up the sun or sits in the shade—this can determine how much solar energy you will produce, how many panels you’ll need, and how significant the savings. If your home requires more solar panels to capture sunlight and produce energy, this can increase the overall installation cost.
Factor in Incentives
There are solar tax credits in place to help make solar more affordable and accessible for everyone. Currently, the federal government is giving a tax credit to homeowners upgrading to solar power, which is now valued at 26% of the total project cost. Those who switch to solar can expect to get up to $19,000 back in their pocket based on a $30,000 to $70,000 project cost. This credit amount will last until the end of 2022 and likely decrease in 2023, making it an opportune time to act.
Additionally, New Jersey offers a certificate program where homeowners receive one Transition Renewable Energy Certificate (TREC) for every 1000kWh a system produces. Check this Clean Energy Technology Center database to find renewable energy and efficiency incentives by state.
Another incentive available to balance electricity costs and enhance savings is net metering (or net energy metering), which allows homeowners to earn credits on unused energy. Net metering works when a solar panel system creates more electricity than its home uses, allowing energy to be sent to the grid for energy bill credits.
Buying vs Leasing
When you choose to purchase your solar panel system, you’re investing in your home and financial future. Owning solar energy systems helps homeowners reduce monthly electric bills while also having the added benefit of increasing the value of their property.
Leasing a solar system means you won’t actually own your system, but you’ll enjoy smaller payments over time than one overall cost. Instead, the solar system is owned by a third-party company or the contractor that installs it and allows you to use it to reduce energy costs each month.
Solar panel leases offer an innovative way for homeowners to enjoy solar power energy without making a hefty overall payment. Although, it should be noted federal tax credits and state incentives aren’t eligible when you lease a solar panel system.
Diverse Financing Options
Once you discuss your residential solar panel installation, have a free quote, and are ready to proceed, you can either pay for the system outright with cash or finance it with fixed payments over a time that works for you.
If you want to learn more about the cost and financing options, EMT Solar & Roofing can help connect you to our solar financing partners.
Get a Solar Panel Quote
The simplest and most accurate way to determine the true cost of solar for your property is with help from a professional solar expert and contractor like EMT Solar & Roofing.
We can help you learn more about the costs for your home with a custom design and quote as well as any financing, tax credits, and renewable incentives available to you based on your location. Let us help you harness savings and get a free quote for your solar panel installation today.