Are you considering going solar energy for home? Every solar company will tell you that going solar can save you thousands of dollars.
While this sounds easy, determining whether solar home energy is a viable long-term investment will depend on several factors. Thus, before spending your money on solar, ensure you understand whether it’s worth it or not.
Before deciding to go solar, ensure you explore all your options. Below are a few essential questions you should ask to determine whether solar home energy is worth it:
1. How Much Is My Current Electric Bill?
Knowing how much you pay for electricity is the most significant factor in determining whether you will save money by installing solar energy. The utility company charges you per kilowatt-hour (kWh) of electricity your household uses. This rate will also vary depending on your location.
In some areas, individuals pay as little as 9 cents while others pay 20 cents and above. When going solar, homeowners install a mini power plant on their home’s roofs. This mini-plant will replace the utility’s power plant; thus, getting their electricity from solar energy for homes.
This means that the household with the highest electricity consumption saves the most by switching to solar energy. If you are considering switching to solar, you can use a solar calculator to help you understand your long-term savings.
2. How Much Do Solar Panels Cost?
The installation cost of solar panels differs depending on the company you settle for and the type of equipment. While most homeowners are tempted to purchase cheap solar panels to save cash, it’s advisable to go for the high-quality ones due to durability.
The best solar panels for home use often last up to 20 years. You will save a significant amount of money if you invest in high-quality panels. However, ensure you take your time to evaluate your equipment options and get the right blend of quality and price for your house.
There are numerous websites online that help homeowners compare different equipment prices, companies, and quality. Ensure you check out these websites before blindly buying the first solar energy system for home you come across. You can also check out these custom solar packages tailor-made to fit your home’s specific needs.
Don’t forget to check out any solar rebates and incentives wherever you live. They are essential in reducing your total spending by up to 50%.
Today, the ACT Government offers homeowners 50% solar tax incentives for pensioners. Many other states and municipalities are also adding other incentives for homeowners looking to go solar.
3. What Options Do I Have to Finance the Solar Panel System?
Whether you want to lease or purchase the solar panels, it’s essential to know the impact either option has on your system’s long-term value. Do you have enough money to buy the system? If you do, this is the best option as it will save you more money in the long run.
Purchasing affordable solar energy for homes using a loan could also save you thousands of dollars. However, leasing may only save you 10%-30% of your total utility bill. Fortunately, Power Purchase Agreements (PPA) and solar leases promise homeowners a maintenance-free option and don’t require a down payment.
Depending on your current financial status and energy needs, ensure you settle for the best option.
4. Examine the Trade Policy
Any changes in the governmental trade policy will also impact the prices of solar panels. For example, suppose the government enacts a four-year tariff in January 2021 on imported solar panels and cells starting from 30% and reduces 5% every year until Feb 2025. In that case, this could lead to a 16% watt increase every year for the average consumer, turning to an overall increase of $900 for a 6kW system.
The prices of panels manufactured in foreign countries will continue to drop as the tariff’s effect lessens with time. However, the federal tax credit reduces as the traffic decreases. You may save more money if you purchase your solar panels sooner rather than later.
5. Examine the Value the Solar Panels Add to Your House
Solar panels can impact the property value in both a negative and positive way. Some panels are integrated with the newest technology and could significantly save you money while improving your home aesthetically. Such panels will increase the value of your home.
Unfortunately, in some cases, ugly panels plastered around the roof could reduce your property value. Sometimes homeowners are tied to agreements that include old-technology panels that reduce the property value. While solar energy is said to improve your home’s value significantly, it’s a gradual increment- don’t expect the property value to reflect immediately.
Going solar is a significant investment for any homeowner. Thus, if you are thinking about moving in the next few years, it’s best to lease instead of purchasing the panels.
6. Consider the Installer
The market leaders in the solar energy market may not always have competitive prices. Remember to request installation costs from both large and smaller companies for comparison purposes.
Is a Solar System Worth It If You Don’t Live in the Sunny Areas?
While solar depends on the sun to provide homes with energy, even people living in areas with little sunlight can save money by going solar. In Australia, states such as New South Wales, Tasmania, and Vitoria receive the most snow and have the highest number of installed solar panels. This is because states experiencing more snowy winters have higher electricity costs and better incentives than other states.
Are You Ready to Install Solar Energy for Home?
If you decide to install solar energy for home, ensure you check its pros and cons to determine if it’s worth the cost. Ensure you look out for incentives and shop around for the best prices and highest quality equipment in the market.
Keep in mind that you can also lease the panels instead of purchasing them. This lowers your upfront costs. However, your property value will not increase as the panels will not be yours.
Did you like these solar energy ideas for homes? For more homeowner tips, check out other posts on our website.