Rising energy prices and new Tax Incentives for Green Home Improvement Interest in solar power is on the rise this year.
Experts say it’s the right time for many homeowners to take advantage of solar energy.Solar power won’t work in every home, but when it does it can save a lot home utility bills Reduces environmental damage from burning fossil fuels. Installing a solar system is still not cheap, but initial costs have come down significantly over the past decade.
solar panel cost
Costs vary by state and depend on factors such as the size and quality of the solar array. Nationwide, the average cost of a residential solar power system is about $20,000 after deducting a 30% federal tax credit. EnergySage.com (opens in new tab)an information site for alternative energy for homes.
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EnergySage Communications Manager Nick Liberati elaborates on that. The federal tax credit deducts his 30% of the solar panel installation costs ($8,580 total in this case) from federal taxes, bringing the cost to him at $20,020.
On average, it takes 8.7 years to break even. That means it takes 8.7 years to save enough power to recoup the cost of the solar panels. After that, solar energy is free until the device wears out. Solar panels are usually guaranteed to last 20-25 years, but the system’s inverters are usually guaranteed for 10 years. Inverters convert the DC electricity produced by your solar panels into AC electricity that you use in your home.
Should I buy a solar panel battery?
The average solar panel cost above does not include storage. A battery can add an average of $9,000 or more after federal tax credits, depending on size and other features. Specifically, according to Liberati, the national average cost for a 10- to 12-kilowatt-hour size battery is about $13,000. From 2023, all home batteries will qualify for a 30% tax credit as long as their size exceeds 3 kWh. So you can deduct $3,900 from your taxes, and your after-tax deduction for the battery will be $9,100.
Although storage batteries are becoming more and more popular, most solar houses do not have storage batteries. Instead, most consumers send their surplus energy to the utility as a credit for electricity usage when the panels are not being sufficiently collected, such as at night.
Without batteries, when your utility loses power, your home loses power, even if it’s sunny. “The main reason for this is safety,” says Liberati. “If a solar panel system is still producing electricity and sending it to the grid during a power outage, having power on the grid can be a serious threat to utility workers trying to restore power to the grid. pose a serious safety threat.
If you have a battery with “Isolation capability”, it won’t be a problem. Islanding is a technique that allows a house to stand on its own. “When the system is isolated, it doesn’t pump extra power into the grid, so solar energy can continue to be generated and supplied to batteries during blackouts without risk to line workers. “We can do that,” he explains Liberati. He points out that not all solar panel systems with energy storage are automatically self-contained. If you do get a battery, you’ll need to make sure your installer provides the proper equipment to enable this technology.
Things to consider when buying solar panels
Vikram Aggarwal, CEO and founder of EnergySage, said the transition to solar could be threatening to many, as it would require thousands of dollars up front.
Aggarwal encourages weigh-in and confirms claims such as utilities and governments offering solar power for free. EnergySage helps with this, he says, connecting consumers with reputable contractors. The site also has information about incentives offered by various states.
Another factor to consider is the solar energy your utility company gets from you, especially if you have no batteries and rely on the utility to run your home when you don’t have enough panels collected. how you trust
Michael Ware, senior solar specialist at a consulting firm eco motion (opens in new tab), says there are tensions about how utilities will trust customers with solar power. Utilities are looking for discounts, as well as how they pay for other forms of energy they sell to consumers. But solar advocates want utilities to lend customers the full price of electricity.
Sherry Shields, director of communications and marketing for the Florida Solar Energy Center at the University of Central Florida, said solar installers were skeptical about whether the panels would be covered or whether additional insurance would need to be purchased. He said he would have to check with his insurance company.
More Reasons to Go Solar
One of the reasons people use solar power is simply to save money, says Robert Stoner, deputy director for science and technology in the United States. MIT Energy Initiative (opens in new tab)“I think most people who invest in residential rooftop solar just want to be part of the transition and just keep it understated,” he says. “There’s nothing wrong with that…some people, like me, own a home. My weekend home is at the end of a five-mile-long Barrier Beach. There’s just no.” Stoner says his solar system, which includes a series of lead-acid batteries, provides all the power. Some of it comes from the sense of independence that I have gained, some of it comes from experiencing the miracle of being powered by the sun. “
Rotraut Bockstahler, 86, of Sarasota, Florida, installed 26 solar panels and a Tesla battery in November 2016 with her husband. About $19,600. The battery cost about $8,400, with a tax credit of about $2,500, for a net cost of about $5,900. “We feel strongly about climate change and want to contribute to reversing that trend,” says Boxsterer. Moving to solar power is one of the most positive decisions she’s made for living in Florida. We were lucky to get power every time.”
The move to solar power doesn’t always mean complete disconnection from the utility. When the system was first installed, the need for electricity from the utility was greatly reduced, bringing the electricity bill down from about $40 to $60 a month, Boxstahler says. With energy costs rising, it now exceeds $100 per month.but in addition Electricity bill savingshe counts the money saved because she didn’t have to get food that didn’t spoil and a hotel room when the power grid broke down.
If they have any regrets, she says, it’s not getting a bigger system. So I feel we should have included more circuitry that could be battery powered,” she says.
Should I wait for new solar panel technology?
Another reason to be hesitant about moving to solar power is that technology advances may offer more efficient and cheaper options. And it’s true that different technologies continue to emerge. For example, some companies offer shingles that act as solar heat collectors. And standard solar panels have become more efficient, cheaper, and better looking.
If you wait, maybe you’ll have a chance to get something better?
Aggarwal says solar panels are improving slightly each year, but don’t expect dramatic change. Ten years ago, each panel probably produced 240 or 245 watts, he said. Currently they generate 400 or 420 watts of power respectively. That means you get more power from the system that covers the same amount of roof he space. According to him, the panels were previously bright blue with silver edges. Now they’re all black and “look beautiful,” he says. And they are more durable.
Solar shingles is not yet ready for widespread use, he says. Aggarwal said a roofing company plans to introduce an “interesting product” this year. However, solar shingles are less efficient and more expensive than traditional solar panels. However, if you plan to replace your roof, Solar shingles may be worth considering, he says.
Ware said he expects battery prices to drop over the next five or 10 years as companies explore different battery technologies. Some jurisdictions require outdoor installations due to fire hazards.
Is Solar Right for You?
Some homes are not suitable for solar power.
- For example, if you have an old roof that needs to be replaced in a few years, it makes sense to wait because removing and reinstalling solar panels can cost thousands of dollars.
- If your roof faces north or is shaded, it may not be suitable for solar power.
- Liberati said installing solar power on roofs covered with clay tiles is more complex and costly.
There is another option for those who cannot install solar collectors on their roofs.
Community solar includes a series of solar panels that people are interested in purchasing. People who participate in community solar typically receive credits from utility companies for the electricity generated by their share of the project. You can find information about Community Solar Projects in Your Area (opens in new tab) on the EnergySage website.
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