Are solar panels worth it?
The rising cost of electricity has made many homeowners and companies start looking for alternative sources of energy. The declining costs of solar panels and solar systems over the last few years have made solar installation seem like a no-brainer for many companies and homeowners.
The biggest question many ask when they think of solar energy is whether it worth it or not. Does it help save money? Does it help earn incentives? How does it affect your electric bills? What are its impacts on your wallet over time? Keep reading this post to the end to get the answers to all the above and other disturbing questions about whether solar panels worth it.
When you start exploring solar panels as your alternative source of energy, you need to ask yourself the following questions to determine it makes sense or not:
1. How much are you paying for electricity?
You pay your utility company for every kilowatt-hour of electricity you use. The rates vary from one location to another. Your friend in another part of the country may be paying 8 cents per Kwh while you are paying 20 cents or more.
If you are getting high electricity rates from your utility company, you should consider switching to solar power. If you are unsure of how much switching to solar will save you, use the online solar calculators. Most of them incorporate local electricity rates in your location to give you a customized report of how much you can expect to save. Online solar calculators also give you an estimate of how long will it take for the solar investment to pay off.
2. How much will the solar panel system cost you?
The installation cost varies depending on the equipment you install and the solar company you choose. Many homeowners opt for cheap solar panels, but for higher saving, you should invest in high-quality equipment.
Take time to review all the equipment of your choice, to get the best price and quality combination for your home. To compare all the available offers in one place, use an online solar marketplace such as EnergySafe.
Also, don’t forget to research the available solar incentives and rebates in your area. In some areas, installing a solar panel on your home may reduce your electric bills by 50% or more. Some utility companies are even paying their customers cash rebates to encourage them to install solar panels in their homes.
3. How are you going to finance your solar system?
You might be wondering whether to purchase your solar system in cash or lease. A cash purchase is the best option, but that does not mean you won’t save if you consider leasing. Leasing solar panels will save about 10% to 20% of your electricity bills.
4. Are solar panels worth it if you aren’t in a sunny area?
Solar loves sunlight, but that does not mean you won’t achieve solar savings if you live in an area that receives less sunlight. New York, Massachusetts, and New Jersey are leading when it comes to solar panel installation despite having cold and snowy winters. These areas have higher electricity rates than anywhere else in the country. Luckily, these areas also have the best local incentives.
Tips for solar shoppers
1. The biggest installers don’t always offer the best price
Because a company can afford to pay most advertising does not mean it is the best. Recent reports have shown that large solar installers are 2,000 to 5,000 dollars more expensive than small companies. Always compare quotes from big companies with those from small companies to avoid overpaying. Getting multiple quotes from different installers, both national scale and local, can save more than 10%. Failure to seek quotes from different installers, you may end up paying inflated prices.
2. Compare all the available solar equipment options
Collect a diverse array of quotes from both national-scale and small installers. Different equipment packages vary in cost and amount they will help you save. Some may be expensive but help you save a lot in the long term. Some solar systems have a higher efficiency rating than others. The best way to find a sweet spot for your home or company is by evaluating quotes with different equipment and financing offers.
Are you interested in getting a quote for solar panels? We can help.