Are Solar panels affordable
Are Solar panels for everybody, or only for the wealthy?
Ask around, and you’ll find that an amazing number of people regard solar panels as a luxury item suitable only for the rich. This, however, is very far from the truth.
A decade or two back few people realistically considered looking beyond the commercial grid for their household electricity supply. Today this has all changed.
The free, renewable and clean energy produced by modern Photo Voltaic Solar panels has made solar extremely affordable. With the price of solar panels installations falling dramatically over the past ten years, it is now within everyone’s reach.
What is it that has now made solar affordable?
Our modern world consumes huge amounts of energy in order to function. The fossil fuels that have supplied this energy over the last two hundred years are non-renewable and are gradually running out. As a result, the cost of sourcing these fuels keeps increasing and energy prices keep climbing.
We now also know that burning fossil fuels raises the carbon footprint, impacting the environment in a negative way.
These two factors alone have led to a global move away from the traditional fossil fuels towards, renewable, clean energy sources. The most available of these is our sun, with its unlimited, free and clean energy, that pours down on the world every day.
An installation of properly designed solar panels brings even more benefits
With a properly designed installation of solar panels, you are freed from dependence on the commercial grid. This means cheaper, more efficient and secure energy for your household. Gone are the constant price increases. Your solar sourced electricity bills will drop to only a fraction of the previous amount.
Add to this the tax incentives and rebates that the authorities offer for solar installations, coupled with the accessibility of financing options, and it becomes obvious why solar is the way to go.
By how much have the costs of solar dropped?
The cost of solar energy has dropped dramatically over the last decade Back in 2008, the average cost of a solar panel installation was $8.82 per watt. For comparison, the average cost for solar quoted on EnergySage in the first half of 2018 was $3.13.
What about the capital investment when switching to solar?
In order to take advantage of free solar energy, one has to factor in one’s electricity usage, cost of the initial investment and how it will be paid off. All good solar installers will offer a variety of financing options making the option of switching to solar affordable.
The amount of electricity that your home uses monthly allows you to determine the size of the solar system you need. Once you have determined this, you can then estimate the amount of electricity savings that your system will deliver each month. The higher your electricity bills are, the shorter your estimated payback period and break-even point will be.
Let’s see how this financing could work in practice
According to Energy Sage, the average size of solar installations in the U.S. in 2018, is approximately 6 kilowatts (kW). Based on the average national price of $3.13/watt, a 6kW system would cost $13,188 after tax credits. This is six and a half percent lower than it was a year ago, and solar panel system prices are still falling.
In Maryland a solar panel installation would average even less: $10,332 – $12,768 for a 6kW system, and $17,220 – $21,280 for a 10kW system
What size system should you go for?
According to Energy Sage, “while bigger systems may cost more, they also should result in more savings. A 10kW solar energy system costs more. but you’ll be cutting significantly more off your bill. The extra monthly saving may be well worth the extra initial outlay.
With a large installation costing $20,000, your system could save you $2,500 a year in reduced electricity bills. You would then reach a break-even point in 8 years ($20,000 divided by $2,500 = 8 years).
With systems lasting an average of 25 years, this means that you have 17 years of free electricity (25 – 8 years = 17 free years)
Get a free estimate, and you”ll then be able to work out the break-even payback period. Subtract the tax incentives and rebates from your solar panel quote and you’ll know the net capital outlay required.
You can see how over a relatively short period Solar starts paying for itself. At the same time it adds great value to your home. A recent study showed that the selling price of your home will increase by $15,000 if you have a solar panel system in place.
Once your system is up and running, the power produced is free and clean, with very little maintenance required. With guaranteed panel life-spans running to 25 – 30 years, the investment becomes highly desirable.
So how much will you realistically save over 20 years?
So how much are your actually saving over 20 years as a result of installing a solar energy system? Naturally this depends on where you live. For example, homeowners in Baltimore will save over $29,000 on average over 20 years.
With such large savings, don’t wait to get your free solar estimate from us today. Start saving the solar way and benefit the environment at the same time!