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Are Solar Panels Worth It? Here’s How to Know

In Business
May 08, 2021
Are Solar Panels Worth It? Here's How to Know

The Center for Sustainable Energy collected data that suggests solar panel installation costs between $15,000 to $25,000. 

With that level of upfront cost, it’s natural to wonder about the return on investment. You may have friends and family that claim they’re happy with the decision, but are solar panels worth it? 

If you wait, you may miss out on significant lifetime savings that can go toward your retirement or other goals. Follow along by reading the sections below, and we’ll get you much closer toward a decision today.

Take a Hard Look at the Utility Bills

How much can solar panels save?

Cutting back on power costs is, of course, the number one way to offset the cost of solar panels. Unless you’ve taken some time to run the numbers, you’re definitely in the dark. It’s natural to feel uncomfortable if you don’t have the hard facts in front of you.

Studies completed by the U.S. Energy Information Administration suggest an average cost of $115 per month. If you live in an area with a higher standard of living, the risk and reward might be higher than you think.

Look for Incentives

If you live in an area that prioritizes green energy, you may find grants from the government or bonuses from utility companies. The federal government does its part as well by offering tax credits through 2021. A lot of these tax incentives will have a direct impact on your income taxation. For that reason, you will need a tax calculator or—if you’re able—speak to a tax professional.

When you’re considering a long-term investment like this one, every penny counts toward making it pay for itself. As solar energy surges in adoption, these kinds of incentives may not stick around for much longer.

Identify the Solar Radiation

The math is quite simple but critical to understand your situation. The more sunshine that your region enjoys each year, the more solar panel savings you’ll enjoy. You may find help with this type of evaluation from one of the professionals at blueravensolar.com/virginia/.

Independent statistics and analysis from the EIA identify altitude, pollution, and distance as key factors. PV collector tracker systems can track this from your home, but you can also rely on local researchers. 

Calculate Your Return on Investment

There are two generally accepted ways to calculate the return on your solar panel cost. If you want to crunch the numbers and understand your profitability, this is a critical tool to make that happen.

The first suggested calculation is to divide the net return on investment by the cost and times that by 100%. Alternatively, Investopedia suggests subtracting the final value from the initial, dividing that by the total investment, and once again multiplying by 100%. 

So, Are Solar Panels Worth It? 

Investments in your property only make sense if you have the right long-term plan. If you live in an area that invests in green energy, you may even have a few hands up along the way. 

Are solar panels worth it? The numbers suggest that they are, but it’s always worth your time to do more research. You also never know who friends and family may know that can provide a unique perspective. 

Did you find something helpful to your considerations today? Find out more about solar panels and much more in the rest of our blog!