This fall, when John YC Lee realized his electricity bill had doubled, he finally decided to invest in solar panels.
For years, a neurosurgeon had considered taking them to the family home in Havertown, Pennsylvania. But last year he accelerated his schedule.
"All of a sudden there was all this chaos in the energy market," said Lee, 50. I started by looking at our energy and our future. I started looking for what I could do.
He literally decided to take matters into his own hands.
After obtaining the necessary permits, the panel is usually installed independently. Then an inspector comes out to make sure everything is in order.
All in all, Lee of Do It Yourself expects to run about $7,000, or about one-third the cost of a professional installation.
"I could pay someone to install solar panels," he told me, but the investment would pay off faster that way. "Trying to install solar on my own is the biggest DIY project I've ever done."
While natural gas recently dropped to its lowest price in nearly three years, many households have seen their electricity bills rise in recent months. Some suburban Philadelphia homeowners saw bills of nearly $500 in December, a month that included cold days around Christmas.
For some, rising prices have made them more aware of ways to cut their bills, from turning down thermostats to switching furnaces to gas stoves and reducing the frequency of using the washer and dryer.
Others may be willing to take more drastic measures, such as installing solar panels, a financial investment that not only benefits the monthly bills, but also the environment.
"It's slowly producing electricity," said Dunbar Birney, a professor in Rutgers University's materials science and engineering department and a solar expert. "It's a cold payment, but as much as it can increase the value of your home, it pays for itself in five years. After the sale, the next owner wins."
After paying to install a residential solar system, homeowners in Pennsylvania, New Jersey and Delaware can break even within seven to 10 years, according to Delaware Valley Consumer Checkbook.
Meanwhile, people are still helping to reduce carbon emissions.
"Every little gesture counts. If we put 5,000 watts (from solar panels on the grid), that means they're not burning natural gas or coal or anything else to generate those kilowatt-hours," Bernie said.
He added that more homes will need to be put on rooftops to meet targets similar to those set by New Jersey Gov. Phil Murphy's Fast Track Plan for the state to run on 100 percent clean energy by 2035.
Installation costs and tax benefits
Homeowners should consider solar energy and evaluate their options.
A typical solar project in the Philadelphia area will cost about $16,500 in 2022, according to Delaware Valley Consumer Checkbook. For large households, a 5-kilowatt system can cost about $20,000, Bernie said, although prices can vary by location and company.
If a homeowner is able to pay for their system out of pocket, the 30% federal tax credit, local incentives and lower bills can turn into income or savings over time.
Depending on where you live, you may be eligible for other incentives through state tax credits or utility rebate programs.
Those who plan to stay in their home longer will get the most out of their investment, Bernie said, but those who plan to sell their home will also benefit. According to Zillow's analysis of more than three million home sales in 2020 and 2021, more and more homebuyers are finding that energy efficiency is very important to them. The real estate company claims that homes with more environmentally friendly features, such as solar panels, sell for more money or faster than homes without them.
"The solar panel you have definitely provides that value," Bernie said. "These are not big expenses, this is an investment."
People who cannot buy solar panels in advance can rent panels from private companies, but the personal financial benefits are small. These contracts are often not good deals, says Checkbook, a nonprofit consumer publication.
Philadelphia has introduced a program that allows city residents to buy solar panels at a discount and another that allows people to rent them for lower electricity bills.
"Best money I ever spent."
Margie Forgosh She said she has wanted to go solar since she first read about its potential as an energy source in the 1990s.
After 30 years of paying off her student and business loans, she finally did.
In October 2021, a freelance graphic designer and her husband, Ari, a dentist, dipped into their savings and paid about $20,000 to install solar panels on their home in rural Lehigh County, just outside of Allentown. Pennsylvania
She says she doesn't regret her decision, especially after hearing about the increase in utility bills.
Her family is also trying to reduce energy consumption in another way, and the monthly electricity bill has been reduced to 15 dollars for the service.
"It was a big list for me," said Forgosh, 57, who owns a Tesla electric car. "The bonus is that the sun shines every day, and I have the energy to drive and cook. It gives me such peace. ... It's probably the best money I've ever spent."
