Installing solar panels on your home is one way to increase the value of your home. For $12,000, you can expect to receive $8,500 worth of added value. This is an average return of 4.1%, but it can be higher in certain states. It's worth considering solar panels if you are unsure whether they are worthwhile. Continue reading to learn more about solar panels and the pros and cons of installing them on your house.
Installing solar panels
Installing solar panels comes with a lot of expenses. The largest cost is for the solar module. This is usually the largest expense. Your savings will also depend on how large the system is. You will save more money the more solar panels you have.
Solar panels can reduce your carbon footprint and save you money on your electricity bills. Depending on the location and the use, the average home solar PV system could save you between 1.3 and 1.6 tonnes of CO2 per year. Once installed, a solar panel system will seamlessly switch between the National Grid and the solar panel system, ensuring no disruptions to your electricity supply.
Savings
Solar panels offer more than electricity production. Solar panel installations can reduce your energy bills. A solar panel installation can reduce the cost of electricity by about $1,060 per annum for a typical household. If power disruptions are frequent, a solar panel system could also be used to backup your generator.
Solar panels can help you save money. This depends on many factors such as how much direct sun you get every day. It is also important to consider the size of the solar panel array as well as the conditions of your roof. Your local electricity rates will be the biggest factor in your savings.
Prices
Depending on the number of panels installed, solar panels can cost a lot. The total cost of solar panels is broken down into two parts: the hard and the soft. Soft costs cover labor and installation costs. Hard costs include permits and taxes. Based on the design, size and type of your solar panel system, both the hard and the soft costs may change. The costs of hard costs are usually smaller than the costs of soft costs, and they vary depending on where you are located.
The price of solar panels can vary from $2.25 - $4 per watt, depending upon the size of the system and the brand that you purchase. The US solar panel cost per watt is about $2.5-$4. The cost of installation can be offset by a solar tax credit up to 26 percent
Return on investment
You must consider many factors when calculating return on solar panels investment. First, find out what your local energy costs are. A solar panel can provide you with energy for over 10 years, so you must determine how much energy it will save you each year. The incentives and policies in your state, such rebates or incentives, are also important. To help you decide the best solution for your needs, get quotes from multiple companies.
Second, take into account the performance and efficiency of your panels. Solar panels typically lose 0.5% to 1% of their annual output each year. This degradation should be accounted for in your ROI calculation, and you should aim to obtain at least 80% of your initial output. In other words, if you purchase a 300-watt panel, you should expect to generate only 240 watts at the end of its lifespan.