Is Installing Solar Panels for My Home Worth It?
More and more homeowners nationwide ask themselves if installing solar panels for their homes is worth it. Below, we break down what homeowners need to know when considering investing in solar power for their homes.
Yes, Solar Panels Are Worth the Investment
While each home and environment is different, solar panels are usually a wise investment. Of course, every homeowner should research and speak with experts before deciding if installing solar panels for their home is worth it.
The significant factors for homeowners are the electricity rates, installation costs for solar panels, the condition and size of their roof, and their home’s value. But in most cases, a solar panel system is a great investment for the average homeowner.
How Much Do Solar Panels Cost?
A key consideration for residential and commercial solar systems is the installation costs. In many homeowners’ minds, solar panels are simply too expensive, but this is often outdated thinking. The cost of installing a solar system has dropped by more than 50 percent in the past decade, and there are also many federal and state tax incentives to motivate homeowners to switch to solar power.
The average cost for a 10kw solar panel system nationwide is roughly $30,000, depending on the availability of parts and labor costs. However, the federal solar tax credit offers a 30 percent tax credit toward any solar installation expense to make it much more affordable. Plus, many states offer tax exemptions for solar system purchases, so you don’t have to pay state taxes on solar power.
How Long Until I Earn Back My Investment?
Once the solar panels are installed, homeowners will notice a significant drop in their monthly electricity bills. The lower electric bills help the panels pay for themselves, but how long can homeowners expect before they’ve paid off their investment?
Again, this will depend on location, climate, and local electricity rates, but the typical solar panel payback period is roughly eight years. While that may sound like a long time, solar panels can last 30 years, which means over 20 years of lower electric bills—a pretty good return on investment!
Do Solar Panels Increase My Home’s Value?
In addition to the lower electric bills, solar panels will also increase your home’s value! Since solar panels offer so many benefits, a home with a system installed is more attractive to potential buyers, so it’ll naturally boost the home’s property value.
But even though the home’s value will increase, most homeowners won’t see an increase in their taxes. Many states, like Arizona, Colorado, Florida, California, and New Mexico, offer 100 percent property tax exemptions for solar-powered homes, with many others offering partial exemptions. So, even though your home is worth more, you don’t have to pay more!
