Let’s talk about incentives that might lower the price of solar panels and the advantages that make them worthwhile now that you know their potential cost.

Savings on Energy Bills

The place where you’ll make money off of your solar power system is on your electricity bills. Solar panels can entirely or nearly eliminate your power expenditures, depending on where you reside. That amounts to roughly $120 each month for the typical American!

Your solar panels provide free power, so each kWh you use is a kWh you don’t have to pay a utility company for. Additionally, using the energy generated by your solar panels might lead to significant energy savings, depending on your region’s electricity cost. These long-term solar savings will eventually be enough to offset the expense of installing your panels.

Additionally, you can reduce your energy expenditures to zero if your state mandates that your utility provider offer net metering, which will hasten the rate your solar panels pay for themselves. With net metering, you may give the grid any extra power your solar panels generate during the day in exchange for bill credits. When your solar panels aren’t producing power, the bill credits balance off the cost of the energy you consume later, resulting in more utility bill savings! Even when the sun isn’t shining, your solar panels may still help you save money on electricity.

However, not all net metering regulations are created equal, and some states don’t provide them. Before taking advantage of a net metering scheme, research the rules of your power provider.

Federal Solar Tax Credits & Incentives

American households can benefit from the federal government’s Clean Energy Tax Credit until 2033. The tax credit, also known as the Investment Tax Credit (ITC), is given to taxpayers who invest in clean energy by installing new solar systems on their primary or secondary dwellings. It is equal to 30% of the solar installation expenses.

This indicates that you are qualified for a $5,400 tax credit if you install an $18,000 solar system on your house before 2033. And while such government incentives won’t immediately lower the cost of your system, they will speed up the process of paying for itself.

• Uncategorized