Installing solar panels in a home or even a business is usually a decision that’s based on two factors. These days, more and more people are choosing to go solar out of a sense of responsibility for the environment. While that’s a growing trend, it’s still true that most folks who decide to travel this route look at it as an investment. They want to know how much they can really save by going solar. It actually depends on the home or the building’s power needs and the system that’s put in place.
Going Full Solar Provides the Best Long-Term Benefits
Going full solar is going to provide the best long-term benefits because it means that for the next 20 or 30 years, you won’t have to pay a dime on your electric bill. On average, people spend about 125 dollars per month on that. This brings the savings to a total of 1500 per year. That’s only counting the savings that you can achieve on your monthly bills.
There are also tax breaks that you can get from going solar. Those are also going to vary depending on the size of the system that you install. With those tax breaks, though, you’re going to reduce the time it takes to win back your investment.
Is it a Good Idea to Not Go Full Solar?
There’s also the alternative to not go full solar. Can this make sense financially in the long run? It really depends on the energy output that the home or building requires. Also, on the size of the solar energy system that’s put in place. One of the benefits of not going full solar is that the cost to install the system would likely be lower. In some situations, however, even smaller systems can benefit a home or building if they power perhaps the part of the property that typically uses up the most energy.
Suppose the cost of a solar-powered system that doesn’t provide energy for the entire house is around $8000. From that, in the following years, thanks to new legislation, homeowners could claim 30% of the total cost as a tax break. This would bring the total cost for the system to less than $6000. With the amount of money that this will save month over month, the investment would fully pay off in less than ten years. That would leave, on average, 15 years when it would actually be generating “revenue” for the homeowner.
Keys to Save by Going Solar
It could be a mistake to install a smaller system than the home might need for fear of the initial investment. Keep in mind that you’ll be eligible to deduce up to 30% of the total cost. Although it may take some time for the initial investment to pay off, you can start seeing benefits immediately as the electric bill goes way down. It’s also important to remember that setting up a solar energy system could increase the value of a property. That means that you may not only be looking at how much you can save by going solar but also what you could gain from it. The added value to the property could make the investment worth it, even if you don’t own the place for the next 20 or 30 years.
