Everyone is trying to save money on their energy bills. Solar panel installation is becoming one of the more popular solutions for people living in areas with a lot of sun.
Over their 20 to 30-year lifespan, solar panels can save you thousands of dollars in energy costs and provide you with clean, abundant energy. But before you go through with the installation, there are a few things you need to know.
How much money will installing solar panels save me?
The exact amount you save will depend on your location (climate and sun exposure), the size of your system, local energy prices, and the amount of energy you use.
According to Forbes, if your solar panels fully cover the amount of electricity you use, it could save your household up to $1,500 a year. If your solar panel array lasts for 25 years, this would add up to nearly $37,500.
If you live in an area with net metering, you could even get paid if your panels produce more electricity than you use.
How much does installing solar panels cost?
Of course, there's an upfront cost of installing solar panels. Forbes estimates that a six-kilowatt system could cost between $13,000 and $20,000. But with your energy savings, you'll make this back in no time.
And thanks to the Inflation Reduction Act, you can get a massive chunk of this installation cost offset. This law could give you a 30% tax credit for solar panel installation and equipment costs. So if your system costs $16,667, you'd get $5000 back, totaling $11,667.
Even though it's still a significant cost, the Inflation Reduction Act tax credit would shorten your payback period.
If the upfront cost is too much to bear, you can always swing for community solar, which allows you to benefit from abundant, clean energy without needing to pay this initial cost.
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