In some states in the US (such as California), installing solar energy can save you almost $100,000 in the lifetime of your home. Whether or not solar energy installation is ideal for your home depends on a number of factors. For one, around 77% of homes in the US are not solar panel friendly, owing to their height or their orientation. Moreover, the amount of savings you can expect to make depends greatly on where you live. What cities offer the biggest savings, and what options exist if you do not wish to pay for installation upfront?
Sun-Loving Cities
Installing solar panels in your home is nearly always a sound long-term investment, since average savings in the US amount to around $1,450 per year. In 20 years, a typical household can save over $30,000 through this renewable energy – a significant amount that can be spent on many other home necessities and renovations. When it comes to average monthly savings, amounts vary considerably. If you live in a city like Seattle, for instance, you can look forward to saving around $47 per month (or $21,000 over a 25-year period). In Los Angeles, on the other hand, monthly savings amount to around $144 per month (or $63,000 in 25 years).
Prices Are Dropping
Solar energy experts, Freedom Solar Power, report that the prices of solar energy have dropped continuously (and significantly) over the past decade, meaning that you could save more than your initial budget indicates. Between 2010 and 2016, for instance, the price of installation dropped by 70%. Such is the outlook that the US will be able to deliver 90% clean, carbon-free electricity across the nation by 2035 – without increasing solar bills. As found in a recent study by researchers at the University of California Berkeley, “The 2035 time frame for near-complete decarbonization of the power sector is significant because it is 15 years faster than projected in most state and national policy proposals.” One of the reasons for this phenomenon is the development of cheaper, more efficient materials that make solar energy more possible for all.
Going Solar On A Budget
There is a 30% federal tax credit for homeowners who purchase and install solar systems, both in their primary and secondary residences. Many states have additional incentives, stipulated in the Database of State Incentives for Renewables and Efficiency (DSIRE). This same website also provides key information about financing options and grants. If you cannot afford a large upfront cost, power purchase agreements (PPAs) or solar leases may be of interest. With PPAs, a solar company installs a solar system in your home, which continues to belong to them. They then sell you electricity at an attractive price. With solar leases, the solar company again pays for the installation, but you pay them back over a specific number of years, often buying the system from the company by the end of your agreement.
Now is a great time to consider making the switch to solar energy. Prices for this renewable energy have dropped considerably over the past 10 years, and you may be eligible for grants and incentives. Finally, PPAs and solar leases may be good second choices if you do not wish to make a large upfront payment.
