What’s the Deal With Solar Panels?

Adding solar panels to your home can reduce your environmental footprint and save you some cash. However, while there’s no denying the former, the latter can be a bit tricky. Here’s what you should know about the costs and considerations of installing solar panels on your home.

Solar Cost Breakdown

The cost of installing solar panels can seem quite daunting. According to a recent report, the cost of adding panels to an average-sized home is about $34,000. However, there is a federal tax credit that can reduce that cost to about $23,000. Some states and cities offer incentives that can reduce the price tag even further. 

Things to Consider

Aside from the upfront cost of solar panels, here are some things you should consider before installing them on your home:

• Metering. Many states offer net metering for your panels. That means you get a credit for the excess energy your panels send back to the energy grid. The more you produce, the lower your bill. 
• Usage. If you use a lot of electricity and the energy costs in your area are quite high, it might make sense to install panels. Keep in mind that if you do decide to install panels, studies have found that your energy usage will likely go up. A reputable solar panel company will help you find a panel setup that should accommodate your usage.
• Your Life. Studies have shown that it takes about 7.5 years to recoup the cost spent on installing solar panels. If you aren’t sure you’ll be living in that house for at least that long, you might not want to install them. Solar panels do add value to a home, but only by about four percent.

Do One Thing: Get multiple estimates from solar companies before deciding on your choice. Like any big purchase, be patient, crunch the numbers, and think through every scenario before you decide.