Do Solar Panels Really Help You Save Money?

 You probably already know that solar panels and other green energy initiatives can help save the environment. We desperately need to find clean, renewable energy sources to combat the effects of climate change. The over-use of fossil fuels has led to longer droughts, destroyed ecosystems, shorter growing seasons, extinct species of plants and animals, and more.

However, home solar systems aren't cheap. So the question we need to answer is, are solar installations worth it? Do you really save money with solar panels?

We're here to provide some answers. Keep reading for everything you need to know about solar panel costs and savings.

Energy Savings

First, let's take a look at your energy bill. The average American pays $115 a month.

When you outfit your home with a solar system, you can eliminate this bill. In other words, you can save about $1,400 a year.

On the low end, a whole home solar system will cost $15,000. Based on these numbers, you can pay off your solar system in a decade with your energy savings alone.

Tax Savings

If you're wondering, "Do solar panels save you money on your taxes?" the answer is yes. Throughout 2022, you can get up to 26% of your solar costs back through tax credits. Using the example above ($15,000), you would get almost $4,000 back.

This would reduce your total costs to just $11,000, making it even easier to pay off your total expense. Some states also offer property tax exemptions. You won't be penalized on your property taxes by adding value to your home through solar system installations.

Check out https://blueravensolar.com/texas/top-solar-panel-installer-in-el-paso/ to find more answers to "How much money do solar panels save?"

SRECs and Net Metering

Aside from your solar panel utility bill reduction, you can actually earn money with home solar systems. For example, most states offer net metering programs where you stay connected to the power grid.

When you create more energy than you use, you can sell it to the power company in exchange for credits. You can cash in on these credits to get free electricity from the power company during periods of low sunlight.

There are also SREC programs that pay homeowners based on how many megawatt-hours of energy they produce each year. You're not going to make thousands of dollars through this program, but you will get free money just for going solar.

Home Equity

Finally, if you're asking, "Do solar panels save you money?" consider what a solar system will do for your home equity. Home solar systems can increase property values by as much as 4.1%.

If your home is worth $350,000, adding solar panels could increase that figure to $364,350. If you're not planning on selling your home anytime soon, you can use that positive equity to take out a HELOC, pay off debt, and more.

Are You Still Asking, "Do Solar Panels Save You Money?"

There are multiple ways in which the answer to "Do solar panels save you money?" is yes. What solar panel incentives have got you excited? Contact your local solar company to learn more about the incentives specific to your hometown.

And if you're looking for more ways to save money, reduce your carbon footprint, or live a better life, we've got you covered. Feel free to explore the rest of our blog to find more insightful articles.