5 Things to Consider Before Buying-Solar-Panels
Buying solar panels allows you to actively create your own energy production without sacrificing any space inside your home. How amazing would it feel to be energy independent and to know that you are harnessing the sun’s power to run appliances and maybe even power your car? Consider the Tesla solar roof, which is competitively priced and has an understated look. In fact, the Tesla roof is getting almost as much attention as the Tesla Model 3! Not only has Tesla stock gone berserk, but many homeowners are thrilled to find that unlike the car, the Tesla solar roof cost is pretty darn affordable.
But maybe we're getting ahead of ourselves here! Before you commit to buying solar panels, you should consider whether or not it is a wise investment to buy a solar panel system for your home.
Consider the following 5 tips while you shop for the perfect roof tiles.
Will I Save Money with Solar Panels?
Getting solar panels for your home seems like a win-win situation. Not only will you be doing something environmentally sound by buying them, you will also be saving money. The actual cost of the solar panels and how much you will save all depend on a few important factors which we’ll review below. Also, you will save more the more you currently spend on electricity bills. However, with solar panels, you will not be at the mercy of price fluctuations, the way you are with with electricity rates. They also vary from one state to another. For instance, in California, the rate is just above 18 cents per kilowatt-hour but Washington state, the rate is just over 9 cents per kilowatt-hour.
The Solar Investment Tax Credit (ITC)
ITC supports the expansion of solar energy, and since 2006 the industry has grown by more than 8,600%! The ITC offers a 30% tax credit, but after 2019, the credit will begin to decrease incrementally. In 2020, the tax credit will be 26%, in 2021 22% and beginning January 1, 2022 it will be 0% for residential solar panels. The tax credit allows you to apply the credit to your personal income taxes. It is used when you buy the solar panels and have them installed. The way a tax credit works is it matches a dollar-for-dollar reduction in income taxes. So, for 30% of your income tax, you’ll be credited per dollar. As you can see, it’s more beneficial to buy the solar panels rather than waiting. It’ll only become more expensive.
How Much Do Solar Panels Cost?
Before tax credits, the average residential system runs anywhere between $15,000 to $25,000 but can cost more than $40,000, depending on the size of the home and the amount of panels you have installed. Generally speaking the solar panel system costs between $3 to $5 per watt. You also have the option of leasing with little to nothing down. You would be leasing anywhere between 20 and 25 years with the option to buy at the end of the lease term. Keep in mind that if you lease, you will not be eligible for the tax incentive.
How Do I Find the Right Solar Panel System for My Home?
First you need to figure out how much energy you consume and need (visit here and follow the prompts). Based on the size of your home and your needs, you can begin omparison shopping for solar panels the way you would compare auto insurance rates. Get at least 5 quotes from contractors. Remember that if you’re buying, you’re increasing the value of your home.
Do I Need to Insure My Solar Panels?
As mentioned before, the value of your home rises when you buy a solar panels for your home but you won’t need to insure them because they usually come with a 20 or 25-year warranty. You may want to buy insurance for them after your warranty ends, just in case they need to be repaired. However, you may or may not be able to add solar panels to a homeowners insurance policy. You may have to buy an endorsement. This all depends on your insurance carrier, so contact us to find you a knowledgeable and reputable agent now: 855.214.2291. For more about Solar Panels, visit here.
Another factor that will dictate how much you will save using solar is how much sunlight exposure you have now. Also, the more sun exposure you have, the more you will save with solar. So, let’s go back to the examples of California versus Washington State. You will save quite a bit if you live in sunny California, where electricity costs are high. In Washington state, there is a deficiency in sunlight exposure and electricity costs are much lower. There’s far less incentive to buy a solar panel system if you live in the northwest versus the southwest and California. To get an estimate of how much energy you may generate and use based on your location, visit here and follow the prompts.
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Homeowners insurance is an important protection to have even when it’s not required for a primary home, a vacation home or condo.