How Does Having Solar Panels Work To Save You Money

If solar panels pay for themselves they can be installed at zero net cost.

How does having solar panels work to save you money. For example if you borrow 12 600 for a 6 kw solar system with an interest rate of 4 and a repayment period of 15 years the annual debt payment is slightly over 1 100. One of the main advantages of installing solar panels is the reduction of your electric bill. Let s say you want to buy 200 watt solar panels it s easy enough to work out that you will need 13 panels to cover your 2 500 watts per hour. That means homeowners with high electricity rates from their utility are the ones who save the most when they switch to home solar power.

That means homeowners but not renters can subtract the credit from the federal income taxes they owe in effect reducing the price of their solar purchase by nearly one third. One of the biggest advantages of installing residential solar panels is a 30 federal tax credit on the total cost of a system. 200 watt panels x 13 2 600 watts per hour. Your money personal finance.

However exactly how much you save is greatly influenced by where you live. So yes you do save money. Homeowners in washington will save about 12 905 on average if they go solar over a 20 year period. More sun means more energy produced and a greater potential to save with solar.

Your home s orientation toward the. When you install solar panels on your roof you are essentially turning your home into its own mini power plant. Going solar is a major step towards a greener approach to living. People can also profit from solar energy by having solar.

Certain states like arizona and california average more sunlight hours per day. Typically the annual savings will be higher than this and no money will come out of your pocket. You generate renewable energy reducing or eliminating your electricity costs altogether. When you go solar you effectively install a mini power plant on your roof to replace the power plant where your utility gets its electricity.