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Are Solar Panels Worth It?

Last updated on November 29, 2021

Are you considering installing a solar energy system and wondering whether it’s a solid investment?

This article will answer all your questions.

For many homeowners, the rising cost of electricity is enough reason to choose solar energy, rendering the installation worthwhile.

However, the cost of solar panels and their energy and financial savings depend on a few critical factors.

According to the Center for Sustainable Energy, installing a solar system costs between $15,000 and $25,000 on average.

Solar panels are not only good for the environment but guarantee a huge saving on your energy bills in the long run. On top of that, you can earn money by selling excess electricity to the grid. All these features can help you significantly increase the value of your home.

Solar Panels Decrease Electricity Bills

If you are overwhelmed by the huge electricity bills from your electricity consumption, then you should consider switching from grid power to solar power.

Your current electricity bill is a significant determinant of whether the solar panel system is worth your investment or not. This is because your bill will reflect in the amount of money you can expect to save once your solar panel system is operational.

Solar panels harness sunlight to generate energy that will be used in your home instead of using power from utility companies. Their operation reflects through a direct saving on the grid utility bills.

Additionally, during the sunny season, solar panels generate excess energy as they receive more sunlight. This power flows to the electric grid for other consumers to use. As a compensation, the utility company offsets or eliminates your electricity bills by reversing your meter reading to reduce your electricity bills.

To enjoy the full capability of your system and to lower your electricity bills as much as possible, make sure you consider the following factors for maximum power production:

●         How the utility charges for electricity – utility companies charge differently depending on the location. Solar panels will be worth more in an area where the utility charge is high.

●         Sunlight exposure – the solar panel system will be worth more if your home is in an open place where the rooftop receives more sunlight.

To accurately determine how much money you can save on your electricity bills by using solar panels, you can use a solar calculator or talk to an energy efficiency expert.

The online solar calculator combines local power rate data to provide you with a personalized estimate of how much you can save and how quickly your investment will pay off.

Make up the Upfront Cost

In a nutshell, solar panels are definitely worth investing in.

The prices of solar panels equipment and the installation process can alternate significantly depending on the solar company provider and the equipment you buy.

Even though upfront costs are high, solar panels need minimal maintenance, and they last for over 20 to 25 years with little or no change to the amount of power they produce.

These minimal long-term expenses can cover the upfront cost. Take your time to review all the equipment you need and weigh the price to the quality desired to ensure quality equipment at an affordable price.

It is advisable to always select good quality solar panel equipment to save a considerable amount of cash in the long run. Monocrystalline and polycrystalline solar panels are the most common for home installation, and monocrystalline solar panels are typically more efficient than polycrystalline ones.

The cost of solar panels depends on several factors like:

●         The amount of energy you need

●         The system size

●        Type of the solar system

●        The location

Solar Panel Systems Are Simple to Finance

You can acquire solar panels by buying, loan financing, and leasing finance methods. In case you plan to lease, loan, or buy a solar panel system, you can in any case make considerable savings on your electricity bills.

Solar leases and power purchase agreements do not require a down payment.

Although you can choose to buy, loan, or lease solar panels, the method will significantly impact the systems’ long-term value. To fully benefit from the savings and gains from your solar panel system, it’s better to buy than to lease or loan.

Additionally, when you buy you own the system and get free maintenance services.

You Can Get Incentives

Incentives play a significant role in the decision to purchase and install a solar panel system. Most governments offer incentives to homeowners for installing solar panel systems.

Incentives allow you to sell the excess energy you produce by solar panels to the local utility company to offset your electricity bills.

The federal tax benefit is non-refundable, which grants you the incentive to offset your electricity bill but not cash.

You may also get incentives such as property tax exemption, waived fees, and cashback, depending on your location.

Have Low Maintenance cost

Solar panels require simple and minimal maintenance throughout their lifetime.

The main operational cost is cleaning the solar panels which you can do by yourself or hire an expert for the job. Apart from cleaning solar panels, you will need to replace the inverter after 5 to 7 years.

Why?

The inverter is responsible for converting the solar energy into AC electricity and heat continuously, and the electronics it’s made of wear out from continuous use.

Additionally, most manufacturing companies provide 20 to 25 years of warranty for solar equipment, and can fix your equipment for free or at a low cost if you run into a problem.

Cables may sometimes require maintenance to ensure smooth and efficient operation of the solar power system.

Solar Panels Are Environmentally friendly.

Solar panels use sunlight to generate clean energy and installing solar panels on your house will help reduce greenhouse gas emissions. It will also reduce your dependence on fossil fuels such as coal and natural gas.

When you burn coal to produce power, it emits harmful gases into the air. These gases lead to air pollution, climate changes and public health problems.

Solar panels produce clean energy with no emissions or harm to your health or the environment.

All these combined factors make solar panels worth your investment, as they generate clean energy, improve your health and reduce healthcare costs.

Solar Panels Are Reliable

Once you install the solar panels, they can produce energy during all seasons as long as they can get at least a few hours of sunlight from the sun.

They are not subjected to nationwide power disruptions that occur in the case of electricity outages. With solar panels, a constant power supply for home use is assured.

Solar Panels Only Need Sunlight Exposure.

Solar panels use sunlight to generate energy, and considering the availability of the sun, you can harvest sunlight to produce power, rendering your investment worthwhile.

Renewable Source of Energy

The amount of energy that can be extracted from the sun is actually massive, and it’s a recurring, daily activity. The entire world can harvest solar energy without worrying about the source drying out or ending.

WIth solar batteries, the energy produced by solar panels can be stored for future use, unlike other energy sources. This guarantees consistent and reliable power, that can be used all throughout the day.

Increases the Value Of Your Home

Installing a solar panel system will increase your home or property value because solar panels have several benefits.

With a solar panel system, you can save on your monthly electric bills by generating your own electric power and storing energy for future use. This system can translate into compiled additions on the value of your property:

  • If you wish to resell your property in the future, you can expect a higher sales value as customers consider the solar system a great addition to the property.
  • You can get loans quickly as it becomes less risky for a lender to give you a loan, due to the fact that the loan to value ratio of your property will decrease.

The upfront value of solar panels is a worthwhile investment in your house that can guarantee your money back, either through higher sales value, or through accumulated savings on electricity bills.

A Wider Range of Solar Panel Products

The availability of various types of solar panel products widens the choice for the customers and ensures that a specific quality-to-price balance is always met.

Solar panels are designed to meet your specific needs. For example, if you want to install a solar panel on a budget, polycrystalline solar panels are the most suitable option.

However, if you’re looking for solar panels to use in factories or industries, thin-film solar panels are the best.

Manufacturers also design solar panels to meet the performance requirements of customers or homeowners who;

●   Want to store the solar energy for later use,

●   Wish to reduce their energy cost, especially when they are spending a high percentage of their power on heating.

●   Want a solar panel system that lasts long.

The wide variety of solar panel options allows you to purchase the specific system to meet your needs.

You Can Become Energy Independent

With solar panels, you can generate your own energy to use instead of buying power from utility companies.

How Does Solar Independence Work (off-grid)?

Solar panels generate energy in the form of direct current, which can be stored in a solar battery bank, to be maintained as a backup power source.

Depending on the amount of solar energy produced, you will have enough power to meet your needs. Rising prices of electricity will not affect you, nor will power cuts from maintenance to the grid, nor will blackouts caused by damages to the grid.

Solar Panels Have a Lasting Warranty.

The manufacturing companies offer a long-lasting warranty of 20 to 25 years, making solar panels a less risky investment as they are guaranteed by the manufacturing companies.

Return on Investment

Although solar panels have a high upfront cost, the money you will save each month on the energy bills will pay off the system’s upfront cost and offer a steady return on investment.

Once the upfront costs of the solar panel system are paid off, all the future reduced electricity bills will add to your financial savings and help you explore the full benefits of solar power.

Bottom Line

With all the benefits and advantages solar panel systems offer, the decision to switch to solar energy makes much more sense.

If you live in an area with high electricity rates, a suitable solar setting, and you can afford the initial upfront cost, do not hesitate to install solar panels at your property because it is highly worth it.

Solar panels bring major benefits for your environment, your wallet and for reducing your electric bills.

Moreover, the incentives offered and the heightened value of your property are additional benefits you can expect to earn from the solar panel system.

Savings will take some time to materialize in a steady return to the solar investment, but the decision to install a solar panel system will greatly improve your property, your environment, your health and your finances.

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    E-Green Electrical

    E-Green Electrical are the pioneers in energy efficiency. We specialise in helping our customers reduce their carbon footprint and impact on the environment while saving money.

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