How Much Can You Save With Solar Panels?
How much you save from solar depends on a number of factors, including direct hours of sunlight, your home’s energy usage and your local electricity rates.
Typically, you’ll start seeing savings right away, but your payback period can vary depending on your initial investment and the size of your solar system.
How Much Can Solar Panels Save You on Your Energy Bill Each Month?
The amount of money you save with solar depends on a number of factors. The size of your solar system, how much energy you use, and the cost of electricity in your area all play a role.
In general, a solar system can save homeowners 50 to 90 percent of their electric bill each month. This savings is especially true in states where electricity rates are higher.
Solar panels work best in sunny, dry climates with little to no cloud cover. On cloudy days, however, the efficiency of solar panels can drop by 25 percent or more compared to a sunny day.
Tax Credits
There are several federal and state incentives available to help reduce the up-front costs of installing solar panels. These include tax credits, utility rebates and performance-based incentives.
The most popular incentive is the federal solar tax credit, which can save you thousands of dollars on your taxes. This is a non-refundable credit worth 30% of the cost of your solar system.
To claim the tax credit, you must file IRS Form 5695 as part of your yearly tax return. You must also meet certain qualifications.
If you own your home, and it is a primary or secondary residence, you are eligible for the tax credit. Rental properties are not eligible.
If you have an energy storage battery paired with your solar panels, you can get a full 30% credit. That’s a huge savings for homeowners.
System Lifespan
Solar panels are a great investment for homeowners and businesses because they can save them money on their energy bills. However, like any piece of equipment or appliance, they can start to degrade after a certain number of years.
This degradation is known as the panel’s “degradation rate.” It’s important to know what this rate is so you can plan for it and avoid losing valuable solar energy when your system’s useful life is over.
A panel’s degradation rate depends on a variety of factors, including the quality and materials used in its construction, your environment, and how well it’s maintained. Luckily, panel manufacturers are constantly making improvements that will extend their lifespans.
Maintenance
Solar panels are a great way to save on your energy costs, but they must be maintained in order to provide the best output. This involves keeping your system clean and working properly, as well as checking that your inverter is producing the appropriate amount of energy each month.
While most solar panels are self-cleaning, they can accumulate dirt, pollen, leaves and other debris over time that will reduce your electricity output. A professional cleaning can ensure your panels are operating at peak efficiency.
Fortunately, maintaining your solar panels is very easy and inexpensive. You can clean them yourself using a garden hose or you can hire a company to do it for you. However, it is important to be careful when cleaning them with a pressure washer because the high temperatures can damage the panels.