The Installation Cost and ROI Of Solar Panels

Environmentally thoughtful homeowners to rely on many different green building materials and techniques to accomplish their goals of an energy efficient and environmentally friendly home. Some materials, installation techniques, and appliances can assist, but the one thing that has been increasing in popularity as it reduces in price is solar panel installation. Solar panels can have a meaningful impact on the amount of fossil fuel-derived energy consumers use in their homes each year. While the amount of savings varies by state, even a small decrease in dependency on traditional energy sources can have a high impact on both a household budget and on the environment.  The planet needs help.  

Quantities Of Solar Panels In United States

The quantity of solar panels installed in the United States has grown by around 13% in the last year, with projections showing that the industry will only proceed to develop. While there are many thoughts to be made before purchasing solar panels, including how much sunlight the house gets, the cost of energy in the region, and how long someone means to live in a home, many homeowners find that the benefits far outweigh the initial costs. And with the expense of installation falling each year, more homeowners are starting to make the switch.

The expense to install solar panels. To power a 2,500-square-foot home, the common household would install a 6KW solar panel, for an expense of around $18,000-$20,000 on average. There are many factors that can determine the total expense of installation, however. The average size of houses in the U.S. has been in decline for the last few years; smaller homes won’t require as much energy to run, and would, therefore, be compatible with lower, less expensive panels. Homes that see a lot of sunlight are also better able to make the most of photovoltaic power, while homes that have more shade may need more panels or panels placed at a distance from their home, increasing installation prices.

Solar Panel Parts: What? Why? And How Many?

Let's talk about batteries first.  Batteries, whether the homeowner prefers panels or photovoltaic shingles, and how many panels the home ultimately needs can all change the final price of installation, even before tax credits, rebates, or other incentives that may lower a homeowner’s out of pocket expenses. The return on investment person continuing to pen ROI for solar panels can be measured in a few ways. The first is an immediate return, the savings that homeowners will realize on their electric bills each month. These savings can vary excessively based solely upon where the homeowner lives, as well as on other parts such as how much energy the household typically uses in a month.

The state of California has the best ROI on solar panels, with a common yearly savings of around $1,500, while Washington state gets the lowest ROI with an average annual savings of approximately $409. For example, most home-buyers are willing to pay around $15,000 more for a home with solar energy than a similar home without. So, even if they plan on selling their home in five to 10 years, they’re still coming out ahead. Finally, because solar energy is a clean energy source, homeowners also see benefits that exceed savings. Relying more on fresh, eco-friendly energy sources means a healthier environment to live in. And because the price of energy continues to climb each year, homeowners will continue to see returns on their initial investment that will multiply over time, rather than decrease the way some other home improvements will.

What about the return on investment? In addition to the long-term return on the placement of getting solar panels, there are other critical benefits as well. These include ways to offset the initial price of the panels, reducing their installation by as much as $10,000 in some areas. One concern is the tax credit. Until the end of 2019, homeowners can get a tax credit that is 30% of the price of their solar panels. After this, homeowners can deduct a large percentage of the price of the system from their taxes.

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