You can increase the value of your house by installing solar panels. A $12,000 investment in solar panels could result in $8,500 of additional value. This average return is 4.1%. However, it may be higher in certain states. To find out if solar panels make sense, read on.
Installing solar panels
Installing solar panels is expensive. One of the biggest is the solar module, which is almost always the biggest component of the total expense. Savings will depend on the size of your system. You can save more money if your solar panels produce more energy.
Solar panels can help cut down on your carbon footprint as well as save you money in electricity bills. Depending on the location and the use, the average home solar PV system could save you between 1.3 and 1.6 tonnes of CO2 per year. Installed solar panels will seamlessly switch between your National Grid and solar panel systems, eliminating interruptions to your electricity supply.
Savings
Solar panels offer more than electricity production. A solar panel system can help you reduce your energy costs. A typical household can save approximately $1,060 a year on their electricity bills by installing solar panels. If power disruptions are frequent, a solar panel system could also be used to backup your generator.
Depending on how much sunlight you receive each day, the amount of money that you can save using solar panels will determine how much. Your roof conditions and the size of your solar array are also important. Your local electricity rate will play the largest role in saving you money.
Costs
Solar panels cost vary depending on how many are installed. The total cost of solar panels is broken down into two parts: the hard and the soft. Soft costs include labor and costs associated with installation. Taxes and permits are considered hard costs. Both the hard costs and the soft cost are subject to change depending upon the size, type, or design of your solar system. The costs of hard costs are usually smaller than the costs of soft costs, and they vary depending on where you are located.
The cost of solar panels can range from $2.25 to $4 per watt, depending on the size of your system and the brand you buy. The US cost per watt for solar panels is around $2.5-$4. You can get a solar tax credit as high as 26% to offset the installation cost.
Return on investment
It is important to take into account several factors when calculating the return of investment for solar panels. You must first know what the local energy costs are. The life expectancy of a solar panel is over 10 years so you should determine the annual energy savings. Your state's incentives and policies, such as rebates and incentives are another factor. It is a good idea to get multiple quotes from different companies in order to determine which company will be the most suitable for you and your budget.
Consider the performance of your panels. The average solar panel loses 0.5% to 1% each year. This should be taken into account in your ROI calculations. You should aim for at least 80% output from your initial production. So, for example, a panel that is 300 watts in power should produce only 240 watts by the end of its lifetime.