In recent years, solar panels have become more accessible. Many homes today use them simply because they cut down on energy bills. Aside from that, they're also eco-friendly. Because of this, many solar panel owners use theirs as leverage to gain a return on investment (ROI).
The ROI for solar panels is calculated by taking the value of electricity generated by your solar panels and subtracting your energy expenses. The result is the value you'll receive when you sell your home. According to the Department of Energy, solar panels can add up to $20,000 to the value of a home, which is a hefty amount of money. However, it doesn't stop there because other things factor in solar panel ROI.
In this article, we'll discuss the intricacies of solar panel ROI and how you can make them work in your favor. Read on below to get started.
Solar Panels as an Investment
Solar panels are an investment that can pay dividends. Like any investment, though, they need to be installed correctly, in the right location, and cared for regularly to get the most from them.
The panels have an expected lifespan of 40 years or more, and their output may decrease by about half during that time. This decrease is offset by the increased efficiency of solar panels with age. As solar panel tech advances, panels will become increasingly more efficient.
It’s important to know that the output of a solar panel decreases over time, and panels should be replaced every 20 to 30 years.
Solar panels have a warranty that covers the panels, but you may not be able to take advantage of that warranty if you cannot provide proof of proper installation. In addition, if you’re not a DIY-er and have them installed by a trained professional, you’ll need to have the same person or company document their installation.
To get the most from your solar panels, you must:
- Have them properly installed by a trained professional
- Maintain your system to ensure the efficiency of the panels
- Periodically have them inspected to ensure there is no damage
- Remove snow and leaves from the panels at least twice a year, or once a year if you live in a sunny climate with lots of snow and leaves.
The Cost of Solar Panels
The return on your solar panel investment is determined by:
- The cost of the system
- The location of your home
- Your energy costs
These days, solar panels are pretty accessible and are offered by many companies. When considering the price of a solar panel, you need to first consider the size of the panel you need. The size will depend on how much energy you need and how much you can afford. If you’re using solar panels for your home, you will need to consider the size of your house as well.
Solar panels are expensive, no getting around that. They can cost as much as $20,000 and more, depending on your location and the size of the panels required. However, customers are eligible for rebates from the government and other incentives.
It’s important to note that some states have different rebates. If you’re considering solar panels for your home, you should verify with your state to see if you’re eligible for a rebate and incentives. Here are a few things to consider:
- You can get a rebate from the government depending on the size of the panels you install.
- You can get a bonus if you install them yourself.
- You can get a bonus if you use a green power provider.
Calculating Solar Panel ROI
Solar panel ROI is calculated by adding the value of the electricity they produce over their lifetime, then subtracting the cost of the system.
For example, if it costs $10,000 to install a system, but it will produce $22,000 in electricity over 20 years, the ROI is $12,000.
The rebate amount will change over time, but the cost of the system and the electricity it produces are fixed, making the investment much more secure than the stock market or other investments.
Modern life has its ups and downs, but energy costs are rising. If you’re looking for ways to save money, maybe it’s time to consider solar panels. You can do your research and buy solar panels online at an affordable price. Just keep in mind that you should familiarize yourself with certain parts of solar panels first before making a purchase.
If you’re looking for a home solar power system, Enlight Energy has got your back! We offer energy-saving solutions through solar panels in various applications, such as residential and commercial properties. Contact us today to learn more!