For homeowners, switching to solar is not a small decision. In fact, solar panels can be a considerable investment. With that said, homeowners who are thinking about switching to solar should take time to determine if solar is a smart investment for their homes.
Unfortunately, most homeowners are not very familiar with solar panels and the internet is full of information, some good some not.
Yes, in almost all cases, a solar installation will help reduce your electricity bill. But when trying to determine if solar is a smart investment, there are a few other factors to take into consideration.
To help, in this article I am going to answer 10 questions that I’m commonly asked by my customers, to help give homeowners a better idea of whether solar is right for their home.
Why Should I Go Solar?
When surveyed, most homeowners are switching to solar to reduce their electricity bills. Reversely, I don’t think any homeowner would install solar panels if it made their electricity bill or costs go up.
However, there may be some other reasons why a homeowner may consider going solar. For example, most homeowners don’t realize that solar panels allow you to control your power bill and also increase your property value by an average of 4.5%.
Should you want to sell your home in the future, not only will solar panels make it 20% easier to sell than other homes, but potential buyers will pay 17% more for a home with solar panels. *
Federal and state programs also provide tax credits and rebates for solar installations and in some states, homeowners get paid for excess electricity produced by their solar panels.
And of course, apart from the financial benefits of solar panels, switching to solar reduces your carbon footprint, helps create sustainable jobs in the community and promotes renewable energy.
Is My House Right for Solar?
This is probably one of the most important questions I get asked by my customers.
The best way to find out if solar is right for your home is to have a solar installer come to your home. Most solar companies will do this free of charge and can also provide an estimate of what it will cost for you to install solar panels, as well as provide a calculation of potential savings.
But should you want to get your own idea of whether or not solar panels are right for your home there are three things you look at:
- How much sun does your home receive? If there is a lot of chases, solar may not be the best option for your home. If there are trees that can be cut back to provide more sunlight on your roof, then this would need to be done before installing solar panels.
- What direction does your roof face? A roof that faces South will spend most of its time in the sun and be able to produce the most efficient energy. With that said, no matter what direction your roof faces, as long as your roof gets enough sunlight solar installers can mount solar panels so as to optimize energy production.
- How much are you currently spending on electricity? Solar panels are an investment and while eventually, they will pay themselves off you will need to pay for the panels and the installation. If you are spending less than $100-150 on electricity a month, you may want to ask a professional solar installer to see an ROI calculation to make sure the investment is worth it.
If after reviewing these three factors you feel solar panels are a good investment for your home, the next step is to request a consultation by a qualified solar installer. The solar installer will be able to visit your home or view it through satellite images and give you a better idea of solar costs, energy production potential, and so on.
Is My Electricity Bill High Enough to Go Solar?
To decide if you spend enough money on electricity to justify installing solar panels you will need to review things.
The first is how much you spend on electricity each month. The second is your electricity rates. Different utilities charge different rates for electricity. If you live in a state that charges high rates, then going solar will immediately help you save a lot of money. But if you live in Texas for example, where you may be paying very low rates for your electricity, then a closer look will be needed to see if solar panels will really save you money.
As mentioned above, as a rule of them if you are spending more than $100-$150 a month on electricity then solar makes sense from an immediate savings standpoint.
Again, the best way to really find out will be to request a quote from a solar installer.
How Should I Finance My Solar Installation?
When it comes to financing your solar installation, homeowners have many options. Solar financing does not always follow the same rules as a conventional car or home financing. For example, I have been able to acquire financing for many homeowners with below-average credit records. This is possible thanks to the many solar financing options.
Conventional financing through a bank or a lender is still the most popular way to finance solar panels. However, most solar companies have established financing through lenders who solely finance solar projects making it easier to get approved and often having access to very competitive interest rates.
Some homeowners also purchase solar panels through a power purchase agreement, PPA. A PPA is similar to a lease in that it allows a homeowner to go solar without paying any money out of pocket or down the line.
If you are not sure how to finance your solar panels, most solar installers will have several available options and can help you get pre-approved.
How Much do Solar Panels Cost?
The goal of any solar installation is to offset 100% of your power needs. That means the solar panels will produce enough electricity to power your house throughout the year without you needing to draw power from the electrical grid.
With that in mind, the average solar installation costs around $22,000.
The amount of electricity you use will be the biggest determining factor when it comes to the price of your solar installation. The panels and system you choose will also impact the price.
By reviewing 6-12 months of your electricity bills, a solar installer can determine how much electricity you use and hence how many solar panels will be needed to produce that much or just a little more electricity.
Your future plans should also be taken into consideration, for example, if you plan to buy an electric vehicle that should be accounted for.
How Much Money Will I Save With Solar Panels?
How much you can save by switching to solar will depend on how much electricity you use and how much you currently pay for it.
If I was to make a national average, I would say that the average American home uses about 11,000-kilowatt-hours of electricity a year and on average pays .13 cents per kilowatt-hour. With those calculations, the average homeowner will save $1,430 per year on electricity alone.
However, not every state is the same.
For example, in California, the electricity rates are very high, and the average homeowner can save about $2,471 a year and about $61,000-$74,000 over the life span of the solar panels.
In Florida, where electricity is not as expensive as California, the average homeowner can save just under $900 a year.
In Texas, where they have some of the cheapest electricity rates in the country, it’s a bit less.
When trying to estimate how much money you will save by going solar, you should also factor in the annual solar tax credit (which changes each year).
Another factor is whether you want to offset 100% of your electricity or if you want to just do a smaller solar installation to lower your electricity bill.
The typical solar installation will pay itself within 6-8 years.
What Type of Solar Panels Should I Choose?
When you first start shopping for solar panels things can get a bit confusing. Today, solar panels are continually changing in size, efficiency, and power production not to mention the many different brands.
Many homeowners will end up choosing a panel type or brand based on preference or looks. Some panels are all black, some are blue, and so on.
When choosing the kind of solar panels, it’s important to know that tier 1 solar panels are generally always a safe option. Most solar installers will have 1-2 options and can help you better understand why they have chosen to deal in those panels and what benefits they will have for your home.
If you have a specific preference such as LG, Tesla, and so on. You can request your solar installer to use those panels.
Also read: What Are The Different Types of Solar Panels and Which Solar Panels Are The Best
How Long Do Solar Panels Last?
The average solar panel lasts 25-30 years.
It is important to consider that a) solar technology is constantly improving to make solar panels more efficient and reliable and b) although your solar panels will last 25-30 years, they will start experiencing a slight degradation in production capability, about .8% per year. This is generally factored into your solar installation so that it will not impact the output of your system. It’s also important to know that the slight degradation will not start immediately.
What Warranty Do Solar Panels Have?
As a homeowner when you hire a solar installer there should be three questions you ask relating to warranties and guarantees:
- What is the warranty on the solar panels, what does it cover, and how does it work? Most solar panels will have a 25-year warranty.
- What is the solar installer workmanship guarantee? While solar panels can last 25-30 years, the quality of the installation also has a lot to do with their effectiveness and lifespan.
- How is the support? If or when there is an issue with your solar panels who do you call and how does the support work?
Many companies exist that only sell solar installations, and then out-source the actual installation work. Other companies handle the consultations, sales, installations, and support in-house.
Choosing a company that does everything in-house will give you more peace of mind, knowing you will be able to call them should you need any assistance or have any questions in the future.
How Can I Choose a Solar Company I Trust?
Today, it’s pretty normal to see homes with solar panels. That’s because the solar industry is one of the fastest-growing industries.
It would be hard for me to tell you which solar company you can trust because some of the bigger companies tend to be less personal and harder to deal with after the installation has been completed, while newer and smaller companies may lack experience.
The most important thing is to really ask questions and find a solar installer that you are comfortable with. Don’t just ask “how much does solar cost” but ask questions that will give you confidence in the solar installer.
Try to understand their process, whether they handle the installation too or if they out-source it, how their customer service works, what guarantees they have, what solar panels they work with and why, and so on.
Also Check Out: A Homeowners Complete Guide to Solar
In Summary
Solar is a fantastic way to reduce electricity costs and be more energy independent. For most homes, solar is a great option and when installed right can help you experience significant savings.
I hope that this article has been helpful in giving you more information about solar. If you need any help or have any further questions, we are available to do onsite solar inspections and consultations.
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