Go Solar and Save Money – The Cost Benefits of Going Solar
There are many reasons people choose to go solar. Some install solar panels because it’s a leading renewable energy that’s good for the environment. Others go solar because they want to generate and own their power, so they aren’t dependent on energy companies.
But what’s the biggest reason people purchase solar panels? To save money! Electricity rates continue to increase each year, and people are looking for more affordable ways to power their homes and businesses.
So, do solar panels really save you money? What are the immediate and long-term cost benefits of going solar?
How Can You Save Money With Solar Energy?
Month after month, your electric bill comes in – sometimes it’s higher, sometimes it’s lower. But no matter what you do to cut back on the amount of electricity you use, you’re going to be at the mercy of that electric bill.
The average cost of electricity in Texas is 12.74 cents per kWh – an increase of 6.5% over last year. That amount has been increasing each year and will most likely continue to rise over time.
There are two ways you can save money by going solar:
- The cost of your solar panels is cheaper per month than your current electricity bill.
- Once your solar panels are paid for, your electricity is almost entirely free.
Installing solar panels can eliminate your electric bill or reduce it so dramatically that electricity costs are no longer a significant factor in your budget. You’ll save even more if electricity rates are high in your area since your savings are equal to the costs you avoid by going solar. And, because electricity prices will continue to increase, your savings will grow every year over the 25+ year lifespan of your solar system.
If your electricity usage spikes during the hot sunny days of summer, it makes sense that solar panels will pull their weight in the summer months. Why not put the sun to work if you’re using extra electricity to stay cool?
Long Term Savings
Ultimately, installing a solar panel system will generate considerable savings for you. The cost of electricity varies significantly depending on where you live, but a 20-year electricity savings from going solar can be considerable – ranging from the low end of $10k to almost $30k. But if you live in a state with middle-to upper-level utility rates, like Texas, going solar is a risk-free investment with major returns.
Your monthly electricity bill can be reduced by up to 20%. That may not sound like a lot in the short term, but the long-term benefits are undeniable when you consider that solar panels usually last for 25 years or more.
Another long-term benefit to consider when investing in solar energy is the value it adds to your home. Solar panels are regarded as upgrades, like a renovated kitchen. So, purchasing a solar energy system will increase your home’s value. On average, solar increases the value of a home by about $15,000 – and helps it sell more quickly!
Take Advantage of the Federal Solar Tax Credit While You Can
The US federal government has been offering an income tax credit of approximately 26% of the overall project cost for installing solar panel systems. That credit decreased to 22% this year, and it will end entirely in April of 2022.
These credits apply to anything that goes into preparing your home for the solar panels – including tree removal, roofing, and other home and property improvement costs. The tax credits apply directly to your federal income tax and decrease the amount of income tax you owe at the end of the year.
You’ll find our complete guide to going solar here.
Going solar will save you money and bring a return on your investment! Since the cost of energy isn’t going down, investing in solar energy is the smart way to save money – and help the environment.
Contact us today and let one of our College Station solar experts calculate your actual savings. Once we’ve done a quick estimate, we can provide you with a free consultation and answer any questions you may have about going solar. We proudly serve Central Texas and Bryan/College Station.
June 1, 2021