In addition to the cost per watt of solar panels, there are other factors that affect the overall cost of a solar energy system . We have listed some of the most important ones for you below.
needs energy
Consider the real cost of electricity , as using solar power may or may not save you money on your energy bills. The bigger your home and the bigger your monthly electricity bill , the more benefits you will get from switching to solar energy. In some cases, a solar system can eliminate a homeowner's electricity bill .
On the other hand, if you already have relatively low utility bills , you may not see enough savings to justify the cost of installing a solar home system .
location
The location of your home plays an important role in saving solar panels. Using data from the Centers for Disease Control and Prevention (CDC), data analysis website Stacker determined that the following 10 states are the sunniest in the continental United States:
roof type
You can use the solar panel system even if you don't live in such blue sky conditions. Most solar panel installers use photovoltaic panels that can absorb both direct and indirect sunlight. However, these solar panels generate more energy on sloping rooftops that maximize sun exposure. On the other hand, a flat roof would require sloped platforms, which would increase the labor and total cost of installing your solar system.
In addition, roofs facing south, west or southwest are more exposed to the sun. For example, a house with less shade and a south-facing roof that slopes between 15 and 40 degrees will get more sun. As a result, these homes receive and store more solar energy . On the other hand, a home surrounded by trees or in a less sunny region like the Pacific Northwest may not save as much money as a homeowner in Arizona or California .
The age of your roof and its structural strength will also affect the total cost of installing a solar panel. Repairing your roof or upgrading roofing materials to support shingles will incur additional pre-installation costs and affect the overall cost.
solar stimuli
State and federal governments are offering solar energy incentives to help offset the upfront cost of using solar energy . In particular, the Federal Solar Tax Credit or Solar Investment Tax Credit ( ITC ) plays an important role in helping residential solar panels make better investments . This tax credit offers a 30% discount on the total cost of installing solar panels.
Local incentives vary by country. For example, some states allow you to earn and sell credits for electricity generated by your solar system through net metering programs. Others offer solar discounts. We recommend using the state's Renewable Energy and Energy Efficiency Incentive Database to find out what government rebates and tax credits you can get .
Payment Options
Solar energy providers offer a variety of payment methods that affect the profitability of your solar investment. Here are the four payment options you can choose from for most solar companies :
- Purchase: Paying for your solar system is the most cost-effective way to pay for a solar system. Not only will you avoid paying interest over time, but you will also be able to claim a federal tax credit on your next tax return.
- Solar Loans: Solar companies understand that not all homeowners are willing or able to pay for their system upfront , so they partner with a loan company to provide loan options. As with all bank loans, the interest rate will depend on your credit score.
- Solar Rentals : Some homeowners may rent out their own solar array systems. In this scenario, the solar company still owns the system and pays a fixed monthly fee to install the solar panels. This option is not as profitable over time as buying or funding your own system because you are not eligible for state or federal benefits. However, you avoid paying large amounts up front.
- Power Purchase Agreement (PPA) : A solar power purchase agreement allows you to pay little or nothing for the actual installation of a photovoltaic system. Instead, you pay the utility company monthly based on the power generated by the system . Think of it like paying a regular electricity bill . As with a lease, you do not own the system and are therefore not eligible for tax credits.
