Long term savings: How to recoup the cost of your solar panels
Long term savings: How to recoup the cost of your solar panels
The upfront cost of a solar panel system may feel intimidating, but there is a return on investment for solar panels that comes over time. This article discusses the many ways that solar panels can put money back in your pocket. Talk to a qualified Panasonic installer to learn more.
Do you want to save money on electricity costs but aren't sure about the return on your solar panel investment? If so, you've come to the right place.
Installing solar panels is a worthwhile endeavor, but it does require a considerable investment you'll want to recoup over time. Fortunately, with rebates, tax credits, and other benefits, it's possible to recoup the cost.
Today, we're taking a closer look at how to recoup your costs after installation. Keep reading to learn more!
Reduced Electricity Bills
The long-term cost of solar panels is well worth it considering the money that can be saved on electricity bills. Solar panels are an excellent way to reduce your electric bills, allowing you to keep more money in your pocket as you invest in energy from the sun.
With each month that your panels are operational, you are saving money on the cost of electricity. Over time, you should be able to recoup the cost of your solar panels in the form of reduced electricity bills. After that, you will continue to enjoy the free energy from the sun and save money for years to come, making the initial cost of solar panels a worthwhile investment.
The process of net metering is beneficial for those looking for long-term savings on the cost of solar panels. This process involves the utility company buying back the excess electricity produced by the solar panels at a retail price. This allows the homeowner to recoup the cost of their solar panels over time.
The net metering process is beneficial for both the homeowner and the utility company because it reduces the amount of electricity needed from the utility company. This often results in lower overall energy costs for the homeowner.
This cost savings along with the incentives offered by utility companies and the government make net metering a great option for those looking for long-term savings on their solar panel investment.
Government incentives are an ideal way to recoup the cost of installing solar panels. Every year, the federal government allocates money to help homeowners and businesses offset the cost of solar energy installation. This kind of financial help comes in the form of:
- tax credits
- other incentives
Solar panel owners can benefit from the Investment Tax Credit (ITC). This allows for a credit on federal taxes amounting to 26 percent of their solar installation costs. In addition to federal incentives, some states and local governments also provide incentives and financial assistance. These can include:
- property tax exemptions
- loan programs
By taking advantage of government incentives, solar panel owners can recoup the cost of installation relatively quickly, and enjoy great long-term savings in energy costs.
Renewable Energy Certificates
Long-term savings can be achieved by taking advantage of Renewable Energy Certificates (RECs). RECs are certificates generated when an eligible solar PV system is registered with their respective Regulatory Authority.
In states where the local grid operator guarantees the additional generation of RECs, they can be sold to consumers looking to power their homes or businesses using clean energy. By taking advantage of RECs, you can recoup the costs of your solar panels without having to wait for the return on investment through the sale of traditional energy.
Additionally, taking advantage of RECs can help you to realize short-term savings as every REC sold is one less kWh you need to generate and pay for. This makes RECs an ideal way to recoup the cost of your solar panels without negatively affecting your return on investment.
Reduced Maintenance Costs
Reduced maintenance costs are one of the major benefits of investing in solar panels. Solar technology has rapidly developed over the past decade, minimizing the upkeep you have to do for it. The panels should last up to 25 years or more, which means minimal operational costs over the long term.
Additionally, solar may only require basic maintenance such as periodic cleaning. This can save you a significant amount of money that you would spend on repairs or replacement of traditional power sources. It's a great incentive for long term savings.
With proper maintenance, homeowners should be able to recoup the cost of their installation in as little as 5-7 years in most locations. Furthermore, they will be the beneficiaries of clean energy production for many years to follow and can safeguard against rising energy costs.
Long term savings are a great way to recoup the cost of your solar panels. Not only do they provide economic benefits, but they also contribute to considerable environmental benefits due to significantly lower greenhouse gas emissions.
Solar panels reduce the amount of fossil fuel combustion. This contributes to climate change and air pollution. With the amount that you save on your monthly electricity bills, you can start to build up a nest egg and invest in other sustainable sources of energy. This includes wind or geothermal energy.
In the long run, you will be able to recoup the costs of solar panels, make your home more energy efficient, and make a significant environmental contribution to your local community.
Increased Property Value (Incase You'll Sell In the Future)
Making a long-term investment in solar panels is a great decision for both the environment and your wallet. Not only will you see immediate savings in your utility bills, but you'll also benefit from increased property value if you decide to sell in the future.
Solar panels are seen as an upgrade to a home that translates to a higher sale price. Home buyers are willing to pay a premium for a home with solar energy systems.
The cost of solar panels may seem daunting, but the long-term savings can be considerable. Start saving today by researching your options and understanding the financial incentives available to you. Talk to a professional to learn more about how to recoup the cost of going solar, and take advantage of renewable energy to reap the benefits of solar power.
So, although many fear the large initial cost of solar panels, the reality is that over time, you'll make money from the purchase.