Installing solar panels is an incredible investment in the home and future. Despite this, the upfront costs and cost of installing solar are what deter many people from doing so. But why solar? Well, there are a variety of long-term reasons why they would want to install solar panels.
Not only are solar panels great for the environment, but they can also dramatically reduce the utility bill and electricity bills.
Solar panel installation costs
The average cost saved with solar energy systems is an estimated $1,100 every year
The average cost saved with solar energy systems is an estimated $1,100 every year, and more for those who consume a lot of energy. Additionally, when they have their own solar system, they avoid power outages. No longer will they depend on the Department of Energy, because they will be using the energy the panels produce on their own.
If they are interested in becoming a part of the ever-growing solar industry, but the solar panel installation costs have scared them away, there are a few ways that they can save on the cost of a solar installation.
How Much Does Solar Installation Cost?
The average cost of installing solar panels is anywhere from $15,000 to $25,000 depending on the size of the home and where they live. This is because, with installation, an average residential 5 kW system will cost between $3 and $5 per watt.
This is before any tax credits and incentives, which means that this rate might be even lower. Read on to learn about how they can save big on their solar panel installation costs.
1. Payment Plans
Most solar companies offer solar loans. This form of financing is very helpful if the initial cost of installation is what is scaring they away.
If they are able to finance the system with deals like zero money down and an APR of 3%, they will be able to have the panels pay for themselves in a matter of a few years.
2. The Federal Solar Investment Tax Credit
Also known as the ITC, the Federal Solar Investment Tax Credit is a program for those who are living in the United States. This federal tax credit allowed them to deduct 26% of the cost of the solar system from the taxes in 2020.
In 2021, this dropped to 22%, which is still a huge deduction. It is good to note that in 2022, this incentive will drop to 10%, so it is important to invest now!
3. The Residential Solar Tax Credit
Different states have their own solar tax credits as well. These tax credits allow them to deduct from the state income tax. For example, in Arizona they can obtain a tax credit of 25% from the solar panel system costs up to $1000.
This will be taken directly off the personal income tax. Additionally, they will also be exempted from paying tax on any solar installation or equipment in Arizona.
4. Choose an Honest Solar Company
When choosing the solar installers, they want to go with a company that is honest and does a great job. At Harmon Solar, they offer a full 10-year workmanship and roof warranty.
This is essential when it comes to the solar installation. It will also help they save money in the long run by avoiding costly maintenance due to improper installation.
Is Solar Right For them?
Although choosing solar is a big commitment, it can be life-changing. The best way to determine if solar is a good choice for them is to review their electricity bill and cost per watt. If they are spending more than $200 per month then they are a great candidate for solar. Next, they can evaluate their home’s sunlight exposure.
When there is more sun, it means more opportunity to produce energy. In states like Arizona and California, there is more sunlight per day. This equals the ability to maximize the solar potential. They can also look into the type of roof they have, amount of shade, and direction towards the sun.
