© David Mailaletti/The Philadelphia Inquirer/David Mailaletti Detail of one of the LG solar panels that John IK Lee bought for his home in Haverford.This fall, when John YK Lee realized his electricity bills had doubled, he finally decided to invest in solar panels.
For years, a Pennsylvania neurosurgeon considered installing them in his family's Havertown home. But last year he stepped up his schedule.
"Suddenly there was all this turmoil in the energy market," Lee (50) said. — I was very interested in our energy situation and the future. I started looking for what I could do."
He decided to take matters into his own hands, literally.
After obtaining the necessary permits, he plans to install the panels largely himself. After that, an inspector will come out to make sure everything is in order.
In total, Lee, a self-proclaimed do-it-yourselfer, expects to spend about $7,000, a third of the amount he was told by a professional installation company.
"I can afford to pay someone to install a solar panel," Li said, but this way his investment will pay for itself faster. "Trying to install a solar panel myself is the biggest DIY project I've ever taken on."
While the price of 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 homeowners received nearly $500 in bills for December, the month of cold days leading up to Christmas.
The constant price increases — from turning off thermostats to converting fireplaces to gas stoves and reducing the use of washers and dryers — indicate how they can lower bills.
Others may want to take bigger steps, such as installing solar power, which is a financial investment that not only lowers your monthly bills, but also benefits the environment.
"It produces electricity incrementally," said Dunbar Birney, a professor in the Department of Materials Science and Engineering at Rutgers University and an expert on solar energy. “It's a slow payback, but to the extent that it can increase the value of your home, it will pay it back within five years. Once you sell, the next owner will benefit.
After paying for residential solar installations, homeowners in Pennsylvania, New Jersey and Delaware are likely to pay off within 7 to 10 years, according to the Delaware Valley Consumer Checkbook.
© ALEJANDRO A. ALVARES/Philadelphia Inquirer/ALEJANDRO A. ALVARES Sellersville homeowners Bob and Athena Bauerle installed solar panels on the back roof of their home.In the meantime, however, people continue to reduce carbon emissions.
"Every little thing counts. If we put 5,000 watts [into a solar panel grid], that means somewhere else they're not burning natural gas or coal or whatever to generate those kilowatt hours," Birney said.
"A lot of homes need to be put on the roof," he added, to meet goals like those outlined in New Jersey Gov. Phil Murphy's fast-track plan to transition the state to 100 percent green energy by 2035.
© David Mayaletti/The Philadelphia Inquirer/David Mayaletti John YK Lee holds one of the solar panels he bought to start a project to install solar panels on the roof of his Haverford home.Solar panel installation costs and tax incentives
Homeowners considering switching to solar power need to weigh their options.
According to the Delaware Valley Consumer Checkbook, a typical solar project in the Philadelphia area in 2022 cost about $16,500. For large families, a 5-kilowatt system can cost about $20,000, says Birney, although prices can vary depending on location and company used.
If a homeowner can afford to pay for their system out of pocket, a 30% federal tax credit, local benefits and cheaper utility bills can become income or savings over time.
Depending on where you live, you may be eligible for other benefits in the form of state tax credits or utility rebate programs.
Birney said those who plan to stay in their homes longer will get the best return on their investment, but those who plan to sell their homes are also likely to benefit. A growing number of homebuyers say energy efficiency is very important to them, according to Zillow's analysis of more than three million homes sold in 2020 and 2021. The real estate firm also found that homes with environmental features, such as solar panels, tend to sell for more. or faster than houses without it.
“The solar energy that you own certainly provides that value,” Birney said. "It's not a sunk cost. It's an investment."
People who cannot afford to pay up front for solar panels can rent them through private companies, but there are fewer personal financial benefits. Checkbook, a nonprofit consumer publication, reports that such contracts are usually not profitable.
© David Mailaletti/The Philadelphia Inquirer/David Mailaletti John Lee moves a solar panel to the edge of his roof in Haverford.Philadelphia has a program that allows city residents to buy solar panels at a discount and another that allows people to rent them in exchange for lower energy bills.
"Best money I ever spent"
Margie Forgosh said she has wanted to switch to solar energy since she first read an article about how it could work as an energy source in the 1990s.
Some 30 years later, after paying off his student and business loans, he finally made it.
In October 2021, a freelance graphic designer and her husband Ari, a dentist, used their savings to pay about $20,000 to install solar panels on their home in rural Lehigh County outside Allentown.
He said he doesn't regret the decision, especially after hearing bills keep rising.
His family is trying to reduce energy use in other ways as well, and his monthly electric bill has been reduced to a $15 maintenance fee.
Going solar "was a big item on my bucket list for me," said Forgosh, 57, who also owns a Tesla electric car. “I am rewarded for giving myself the energy every day when the sun is shining to keep cooking. It gave me so much peace. … It's probably the best money I've ever spent in my life.
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