As a homeowner or commercial building owner, you can reap many benefits from solar panels. Some key benefits of solar panels include reduced electricity costs, a lower carbon footprint, and increased home value. Solar panels utilize energy from the sun, which is readily available. However, despite their many benefits, solar panels have substantial installation and maintenance costs. The benefits of solar panels can vary significantly from house to house.

How Solar Panels Work

Solar panel units use photovoltaics, abbreviated as PV, to convert sunlight into electric current. The photovoltaic cells in solar panels are made of silicon and grouped into larger arrays or modules. When sunlight interacts with the photovoltaic cells, electrons move, and electricity flows. Solar panels contain additional components that harness and control electricity flow to power a home.

The Benefits Of Solar Energy

Compared to other power sources, solar energy offers many benefits:

Renewable Energy

Solar energy is renewable, meaning that it cannot be depleted. Other energy sources like fossil fuels can be depleted as their supply dwindles. The cost of energy from fossil fuels can increase with reduced supply. Some estimates suggest that the global oil supply will be depleted in the near future.

Solar Energy Is Reliable

Solar energy systems can work in many environments worldwide. Conditions like heat waves, droughts, and other conditions that might strain conventional power grids do not affect solar energy.

Reduced Carbon Emissions

Solar energy reduces greenhouse emissions significantly. Solar energy does not produce pollutants associated with other energy sources.

Non-Environmental Benefits Of Solar Energy

In addition to the numerous environmental and public health benefits of solar energy, it also offers financial and cost savings. Additional benefits of solar panels include:

Tax Credits

You can claim a 30% tax credit on your income tax for the solar energy system installation cost.

Increased Home Value

Potential home buyers view solar panels as an upgrade. Therefore, most buyers would be willing to pay more for a home with solar energy. When listed on the market, homes with solar energy systems will likely sell faster than those without.

Reduced Utility Costs

Solar systems tend to lower the cost of electricity. They also provide homeowners with additional flexibility. For example, they can host third-party systems and purchase the electricity generated at a reduced rate.

Reduced Costs And Inconvenience During Grid Outage

Solar panel setups have batteries and can provide electricity when the power grid goes down. This can help you save on costs associated with emergency housing and buying power generators.

You Can Sell Surplus Electricity

Most states across the United States allow homeowners with excess electricity to sell the energy generated through solar panels back to the grid.

The Cost Of Solar Panels

The average cost of solar panels in the United States can range between $10,000 and $18,000. However, the installation costs can vary depending on your location, your home, the size of the solar panels, and other factors. Solar panel installation costs fall under two main categories:

Upfront Costs

When installing solar panels, you will not only incur the cost of buying solar panels. You must also meet the labor and installation costs, paperwork, permits, and dealer fees. You also have to buy the additional equipment needed to operate your solar system, including an inverter, metering equipment, and battery storage.

Long-term Costs

Most solar energy systems last between 20 and 30 years. During this period, the system does not require significant maintenance. However, due to the wear caused by normal usage, you can incur maintenance costs like occasional cleaning. You will incur a cost if you outsource the cleaning services.

The Potential Return On Investment

When you invest in solar panels for your home or business, you will expect a significant return on investment. There is no guarantee that your solar system will recoup the costs incurred in acquiring and installing it. On average, the return on investment from solar panels is around 10%. Therefore, for every $1000 you spend on the system, the solar panels can generate returns of around $100.

The Factors You Should Consider Before Installing Solar Panels

Installing solar panels can be a great start if you intend to move towards green energy. However, you must consider several factors before you invest in a solar energy system:

The Suitability Of Solar Panels For Your Home

Solar panels can work in almost every climate. However, for some reasons, solar energy might not be ideal for your home. Some of the factors that can determine the suitability of solar panels for your home include:

  • The size, age, and slope of your roof.

  • Whether you have trees close to your home that shade your home.

  • The electricity costs in your area.

  • The amount of sunlight in your area.

The size, age, shape, and slope of your roof are crucial factors to consider when considering whether solar panels are ideal for your home. Roof structures are among the primary roadblocks to solar energy.

Solar panels might not be ideal if there are trees close to your home that put excessive shade on the roof. The panels perform optimally on south-facing roofs with a slope between 15 and 40 degrees. However, other roofs are still suitable. Professional solar energy experts can guide you on whether solar energy suits your home. An expert can also help you determine how much you can save on electricity costs when installing solar panels.

A steep roof can make it challenging to install solar panels. You will likely require mounting equipment or incur extra labor costs. The ideal roofs should have plenty of surface area and limited obstructions like chimneys. Smaller roofs can still accommodate solar panels, but you would be better off with efficient panels like monocrystalline panels that generate more power even in a small space.

Perhaps you are wondering whether your location is suitable for solar energy. You can check the National Renewable Energy Laboratory, abbreviated as NREL, which provides maps that show the solar radiation levels in different areas in the United States.

Maintenance Costs

After installation, most solar panels do not require significant regular maintenance and upkeep. If your solar panels are obscured by debris, you can opt to wash them. If you entrust the cleaning to professional cleaners, you can expect to incur several hundred dollars per visit. You might want to monitor the generation capacity of your solar panels regularly. If you notice that the capacity is dropping for other reasons besides weather events, you should contact an expert.

Ensure that no one steps or walks on your solar panels if you want to enhance their lifespan. Taking proper care of your solar panels ensures that they remain clean and free from dirt and debris. If any branches or other large items fall on the solar panels, you should have them removed as soon as possible.

Government Incentives/Rebates

You should ensure that you understand all the government incentives/rebates available in your area before you install solar panels. Incentives and Rebates could significantly lower solar energy system costs and increase the financial benefits you reap from the panels.

Consider whether your electricity utility company provides a subsidy to users who install solar energy systems. Many governments offer rebates, which reduce installation costs and give tax credits.

You can access solar tax incentives/rebates at state and federal levels. The federal solar tax credit was previously known as the Investment Tax Credit. Under this program, you can claim up to 30% of the solar system cost as a credit to help you reduce your federal tax burden. Even if you do not owe significant tax every year, you can roll over the outstanding tax credits for up to five years.

Your Energy Consumption

Before you install solar panels, you should consider your energy consumption levels. How much electricity do you consume every month? An average household in the United States can consume around 893 kilowatt-hour every month. A residential solar system can produce between 350kWh and 850kWh every month. In this case, installing a solar energy system can help you save up to 95% of your monthly electricity bills. If your location has high electricity costs, you can save significantly by switching to solar energy. However, if your household has low energy consumption, you might not save enough with the solar system to cover the installation costs.

Net Metering Option

Does your utility company offer net metering options? Net metering can help maximize the return on investment from your solar panels. With net metering, you send the excess energy your solar system produces back to the grid to earn billing credits. The billing credits will be deducted from your monthly electricity bill. You can save money even as you produce clean and reliable energy for your home.

The net metering benefits can vary from location to location. Therefore, you should contact your utility company to determine how much you can benefit.

How Much You Can Save With A Solar Energy System

In the United States, it takes around 8.5 years to realize your return on investment after installing solar panels. The estimated lifetime savings from solar panels is around $25,800. When you pay off your system, you can enjoy the benefits of reduced monthly electricity bills. Solar panels last for an average of 25 years. Therefore, even after paying off the system, you will still have around 16 years to enjoy the pure benefits of your solar energy system. If you install a solar energy system in your home, you will likely save thousands of dollars over the lifespan of the system.

Sometimes, a solar energy system might not yield as significant a return on investment as you expect. Some of the factors that can affect your return on investment include:

  • Total system cost.

  • Local electricity costs.

  • Whether you take a loan, lease the system, or pay upfront.

The payback period can take longer due to fluctuating compensation by your energy company or an unexpected lapse in your system’s performance. If you notice discrepancies between your system’s output and the expected performance, you should contact the installer for guidance.

The Disadvantages Of Switching To Solar Energy

Some of the leading reasons why homeowners hesitate to install solar energy include:

Hefty Upfront Costs

A solar energy system can save you money in the long term and drastically reduce or even eliminate your energy bills. However, solar panels are still a costly investment. Many installers have repayment plans that can allow you to pay for your solar system in installments. However, paying for the system upfront helps you save significantly.

Can Affect Your Home’s Aesthetics

Some people might not like the appearance of solar panels on their rooftops since they prefer clear roofs. Solar manufacturers know this fact, and some have developed solar shingles. Solar shingles blend in well with your existing roof and are hardly noticeable. However, many solar installers do not offer solar shingles. In addition, solar shingles are more expensive than solar panels.

Weather And Climate Dependence

Your solar panels can generate less electricity under certain conditions like obstructions, seasonal variations, and clouds. Sola will not generate power at night since the sun is not out. All these factors can make your solar panels less efficient. The good news is that you can avoid these problems by investing in solar energy storage batteries. You can store the excess power and use it later. The other alternative is selling the excess energy back to the grid.

When Solar Panels Are Not Worth It

Solar panels might not be worth it under the following conditions:

  • If your roof is not big enough.

  • If no one is in your home during the day.

  • Your roof is extremely shaded.

  • If your monthly electricity bill is extremely low.

  • A planned roof renovation or extension.

Find High-Quality Solar Panels Specialists Near Me

Perhaps you want to generate your energy, save your electricity bill, reduce your carbon footprint, or reap other benefits. Several factors will determine whether solar panels are worth it or ideal for your home. Since energy costs keep skyrocketing, generating solar energy could translate to great savings. You can save on energy bills and even sell the excess electricity.

If you are considering installing solar panels but are unsure whether they are worth it, contact an installation expert. At Sun Solar Electric, we have experienced installation experts. We provide reliable solar panel installation services in the Bay Area and Northern California. When you contact us, our experts will examine your house and advise you whether you should install solar panels. Contact us at 707-658-2157 to speak to one of our experts.