Home Tech Electricity Shouldn’t Cost the Earth: Is Solar Energy Affordable?

Electricity Shouldn’t Cost the Earth: Is Solar Energy Affordable?

by Krutika Lohakare
Electricity Shouldn’t Cost the Earth: Is Solar Energy Affordable?

If you’re one of the many U.S. homeowners considering going solar, you probably have a lot of questions. Solar energy isn’t exactly new, but it’s not widespread, yet so you’d inevitably want to know more before investing.

One of the biggest concerns people have is the cost of solar power. There are plenty of known benefits, but how much will it set you back? Fortunately, this guide will go through how affordable solar power can be. 

Let’s get started. 

Cost of Installation

The initial cost of installation for solar panels varies depending on how big your home is. It can cost between $15,000-$25,000 at first, or even more.

This is an intimidating number at first, but remember that it’s an up-front price for an investment you will have for a long time. The average payback period for residential solar is about 6-9 years. 

However, take a look at your recent utility bill. It’s likely higher than you’d like it to be. A solar panel system can save you thousands of dollars on your electricity bill down the road. 

Even though you’ll be paying more than you’d like, it’ll save you money in the long run.

How Efficient Are Solar Panels?

To know how much you’ll be saving, you need to find out your home’s power consumption. You can find this usage on your monthly energy bill. This will determine how much solar energy you’ll need to power your home effectively and what type of system will work best.

Now you’ll be able to look for the best panels and contractors for installations. Many of them offer a zero commitment savings report, which will let you know how much you can save by making the switch. Knowing more about your own energy usage will make it easier to see the difference between your current source of electricity and solar energy. 

Incentive Opportunities

Solar panels will not only save you money in the long run, but you’ll also be able to save money by taking advantage of government tax deductions that are available for installing a renewable energy source. In 2020, this deduction was at a rate of 26%. This means that 26% of whatever you pay for your solar investment can be credited to your annual taxes!

As you can see, there are plenty of reasons to make the switch to solar power. Not only is it better for the environment, but it will also save you money in the long run. 

Is Solar Energy Affordable?

With a 42% annual growth rate in the last decade alone, solar isn’t going anywhere. It’s a big commitment, so it’s important to learn everything you can about solar energy before getting panels installed. One of the first things you should know is how much you should expect to pay for it.

The good news is that solar energy is now the cheapest electricity in history. This makes total sense. Sunlight is abundant and free. 

Looking for more informative articles like this? Then be sure to check out the finance section of our blog!

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