Solar power is all the rage in the United States. Nearly 50% of all American homeowners are considering switching to solar power.
They are interested in reducing their monthly energy bills.
In addition, these homeowners want to make a positive impact on the environment. Solar panels help reduce strain on the energy grid and use the unlimited resources of the sun to power their homes.
Read on to learn the cost of going green and transitioning to solar. Explore tips on how to calculate your average solar panels cost.
What Are the Variables that Drive Solar Panels Cost?
There are many factors that affect a solar power cost estimate. Labor and material are the two primary inputs into a solar project cost.
Labor is driven by the number of hours necessary to install solar panels. In addition, solar technicians need to install a power inverter and bi-directional meter.
Material costs are dependent on the product that you purchase. Not all solar panels are created equal.
Of course, both labor and material costs are driven by the power requirement and roof size. Larger work areas necessitate more installation time and more panels.
Also, consideration is made for home energy usage. The higher your energy demands are the more solar panels that you need.
Ultimately, local solar companies visit the house and produce an estimate. They review prior months’ energy bills and determine the scope of the work.
What Is the Total Project Cost?
While impossible to give an exact number without your home’s specifics, we can provide a rough estimate. The average cost for a solar panel installation is $12,810 according to surveys of the solar marketplace.
Another way to look at total project cost is as a function of energy use. The average home uses 6 kilowatts of power. The average cost of solar panel installation is $3.05 per watt.
Many states are interested in reducing strain on the electric grid. They also want to reduce carbon emissions and use renewable energy sources.
For these reasons, state governments offer tax incentives to transition to solar power. It is important to note that the $12,810 cost figure above includes tax incentives.
Is There a Positive Return on Investment?
Many consumers wonder whether it is worth it to convert to solar power. While there are significant upfront costs, the financial benefit is reduced utility bills each month.
How long does it take to make your money back from the initial investment? Of course, the return on investment calculation depends on various factors like the number of solar panels and location. However, independent studies show that you could break-even within six years.
A Recap of Solar Energy Costs
Switching to solar energy is a decision that benefits everyone. You will help save the environment while cutting your electricity bill at the same time. There are great financing packages and government tax incentives to help pay for it.
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