There are tons of homeowners switching to solar power. This trend is quickly gaining speed to include business owners.
The big question is, what kind of savings can you expect by installing solar panels for your home? More importantly, what is the payback period for solar panels?
If you've been thinking about making the change to renewable energy, these are important things to consider. We want to shed some light on the situation. Keep reading for a quick guide on your solar panel payback.
Monthly Energy Savings
After outfitting your home with solar energy, you will immediately begin saving money on your electric bill. If your solar system is completely self-sufficient, you can eliminate your energy bill entirely. For the average homeowner, this means saving at least $115 a month.
While this may not seem like a lot of money, look at the bigger picture. For example, $115 a month for 10 years is almost $14,000. In other words, you will break even on solar panels in this amount of time, and we haven't even begun to talk about your other solar panel payback benefits.
Year-End Tax Credits
One of the best rooftop solar panel payback periods occurs in the first year. After you complete your project, hold onto all of your receipts. This includes the costs of your materials and your installment fees.
Then, when you go to file your taxes, claim these costs. We recommend using a professional accountant to help you file these costs accurately. From now until the end of 2022, you can get a 26% tax credit based on your solar expenses.
If you spent $15,000 outfitting your home with solar, the federal government will return $3,900. If you're ready to find an experienced solar panel installer, it's time you found a reliable local solar panel installer.
State Incentive Programs
State governments also recognize the importance of solar panel carbon payback. As such, different states offer different types of incentives to encourage homeowners to make the switch to green energy.
Some states use net metering to monitor how much energy your solar panels produce each month. At the end of each month, you can be awarded cash for certain amounts of energy produced.
In other cases, you can earn money or credits through the power companies for selling unused energy you create through your solar energy system. Some states use both of these solar panel payback programs.
Increased Property Value
Finally, installing solar energy for your home adds value to your property. Therefore, if you ever go to sell the home, you can expect to ask for more money. Recent studies show that you can potentially get 4.1% more for your home if it has solar panels installed.
This also means you can refinance, take out a HELOC, and more.
Are You Ready To Receive Your Solar Panel Payback?
Although the average payback time for solar panels varies depending on how you're getting money back, you can see that these numbers add up rather quickly. Between federal and state incentives, increased property values, and energy savings, you can end up making a lot more money than you spend on your solar installment.
As you can see, your solar panel payback can be significant. For more homeowner tips or green energy advice, don't go anywhere. Look through some of our other articles to find the information you need to improve your life on a frugal budget.
