How Much Money Can Installing Solar Panels Really Save?
For most homeowners the decision about whether or not to install
solar panels really comes down to the cost of the solar panels and
installation versus the long term savings that using solar energy
can provide. So how cost effective is it to install solar panels?
No one can calculate exactly how much money you can save by using
solar energy because energy prices fluctuate and there are other
factors that need to be taken into consideration. But, many
homeowners that have switched to using solar energy report that they
have cut their energy bills from usually 50% to as high as 90% which
can add up to a lot of money saved over the course of 20 years.
Another factor to keep in mind when you are considering buying solar
panels for your home is that homeowners can usually get large grants
and rebates from state and Federal programs to help defray the cost
of buying solar panels. So you might be able to install solar panels
in your home for a lot less than retail price if you quality to take
advantage of those incentives. Many solar panel dealers will help
you fill out the paperwork necessary to get those rebates and
grants.
If you are building a new home then the cost of buying and
installing solar panels for energy can be folded into your home loan
or home mortgage so that you won’t have to put in any money up front
to install them. Since the solar panels will be part of the home and
will add value to the home most mortgage companies look at the cost
of solar panels as a home improvement.
If you have a pre-existing home that you want to fit with solar panels you can
take out a mortgage or secure a home equity line of credit to finance the up
front cost of the solar panels and the monthly energy savings that you have as a
result should more than pay for the loan payments. The home improvement of
adding solar panels also increases the value of the property.
Once the solar panels are installed it takes awhile for the cost of the
installation to be absorbed but after that point the amount of money that you
save can be hundreds of dollars per month depending on the price of electricity
and how much electricity you use. An existing home usually reaches the “payoff
point” where the solar panels have paid for themselves in savings after about
6-8 years. A new home will reach the payoff point almost immediately.