Installing a home solar panel system is no small investment, and California homeowners generally pay more than the national average due to higher labor costs. This leads many homeowners to question whether the investment in solar is worth it. The answer to that question is yes. Let’s take a look at how the many benefits of solar panel installation outweigh the cost.
Reduce Energy Costs
Unfortunately, the main reason most homeowners go solar isn’t that it’s a great choice for the environment and it reduces your carbon footprint. The real driver behind using solar energy is the major savings you’ll see on your energy bills. Adding a big enough solar panel system to your home will result in a significant decrease in your energy bills from the moment the system starts working. In the sunny state of California, which has higher electricity prices and year-round sunshine, the savings are even more dramatic.
In addition to lower energy bills, California offers a generous net metering program. Net metering is when your solar panel system connects to the electrical grid and essentially sells excess energy from your solar panels to the utility company. This way you’ll pay less when you have to use the grid.
Return on Investment
The most difficult part of investing in solar energy is — you guessed it — the initial investment, which can be upwards of $16,000 or more according to the Department of Energy. While it’s difficult to come up with the initial sum to install solar panels, you’ll quickly see a return on your investment. If you save $100 each month with a $16,000 system, you’ll break even in under 14 years if utility costs remain the same. Since utility costs are on the rise, you’ll see a return on your solar investment even sooner.
Tax Credits
The calculations for how soon you’ll break even assume that you’ll pay the full amount for your solar installation — but you won’t have to. Most solar installations qualify for the Federal Investment Tax Credit, which is a 30% tax credit in the following year. This significant credit is meant to encourage homeowners to invest in clean solar energy, and it can save you a good amount of money on your installation.
Other Benefits of Solar Power
There are several benefits of solar energy that aren’t necessarily based on finances but often make the investment worth it. These include:
- Significantly reducing your home’s carbon footprint
- Gaining greater energy independence
- Investing in renewable energy sources
- Solar systems are low-maintenance
If you’re looking to install solar panels for your home or are still weighing the pros and cons, Big Mountain Air is here to help. We can walk you through your best solar options and help you decide the best course of action.
Contact us today to speak to a qualified service representative and begin the installation process.