Nearly 70% of homeowners want to go solar. The number of solar powered homes is on the rise, but what's holding some homeowners back from making the jump?
Unsurprisingly, the answer is cost. At Semper Solaris, the number one question we answer is, "Will solar panels make financial sense for my household?"
Many homeowners can benefit financially from going solar, but it will depend on factors ranging from the solar payback period by state to the current cost of your electric bills.
Read on to find out if solar power is the right financial choice for your household.
Solar Power Generation
You stand to save the most money if you can offset 100% of your electricity use. First, you'll need to know how much solar power you can generate on your property.
Homes that can generate the most solar energy typically have south-facing roofs with no shaded areas. The size and condition of your roof will also play a role in how many panels you can install. Even something as simple as your region's cloud coverage can impact your ability to generate solar power over time.
Current Electricity Use
We're facing inflation across the nation, but the surge in electricity prices is outpacing the increase in inflation. In 2022, electric bills rose an average of almost 15%.
If your home is a good candidate for solar panels, the next thing to determine is your electric bill before and after solar panels. You can get a rough estimate of long-term savings by multiplying your annual electricity costs by 25-30 years, the current lifespan of most solar panels. For example, if you spend $1200 on electricity each year and offset electricity use by 100%, you will avoid up to $36,000 in electric bills.
Solar Payback Period by State
Of course, the raw amount of electricity savings is impacted by the cost of solar panels themselves. The solar payback period is the amount of time it takes to pay for your solar panels before you're saving money free and clear of solar payments, and it varies by state.
Your state's solar payback period will reflect:
- How much energy you use
- How much solar power you generate
- The cost of your system
- The cost of electricity in your area
- Any state or local incentives (on top of federal tax incentives)
It typically takes homeowners 8-10 years to pay off solar panels and installation. Putting tax incentives toward these costs can speed up the payback period and reduce your overall investment.
Want a Thorough Financial Evaluation? Contact Semper Solaris
For many homeowners across the nation, solar power provides a clear financial benefit. However, your potential savings will depend on everything from the solar payback period by state to your state and local solar tax breaks to your energy consumption.
The best way to get an accurate financial evaluation is to work with a solar provider. Contact Semper Solaris to book an appointment and find out more about how much you stand to save by going solar.
