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The Pros and Cons of Installing Solar Panels
Its safe to say that renewable energy has become a huge trend in recent years, with countless businesses and homeowners moving away from outdated fuel sources. In fact, residential solar power installations rose by a whopping 34% from 2020 to 2021, thanks in large part to new legislation offering a 30% solar tax credit.
In other words, theres never been a better time to consider going solar!
If youre a homeowner, its crucial to weigh the pros and cons of installing solar panels before you take the plunge. Lets take a look at everything you should know about these systems.
Pros of Installing Solar Panels
As you might expect, solar panels can be a great investment for the right household. Here are a few key advantages to getting an installation:
Carbon Footprint Reduction
Perhaps the biggest benefit of solar panelsand the one most people are familiar withis the switch to green energy. Solar panels allow you to reduce your carbon footprint by using renewable solar energy as a resource.
Lower Electricity Bills
Another huge benefit of solar panels is that they can offer great financial savings. Depending on your state and your households energy use, you could save tens of thousands over the lifetime of your investment.
Money Back From SRECs
SRECs are short for Solar Renewable Energy Certificates. These allow you to earn money if your solar panels generate more electricity than your household uses.
For every extra MWh of electricity, youll earn one SREC. The amount states will pay for each SREC varies, but some will offer hundreds of dollars. Note, however, that youll have to live in a participating state to receive payment.
Financial Support From the Government
The recent expansion of federal tax creditswhich we mentioned aboveensures that homeowners who install solar panels can get a 30% tax credit until 2032. This can help counterbalance the initial cost of installation.
Protection From Rising Electricity Bills
Electricity costs are rising across the U.S., and homeowners can expect these costs to continue increasing. With solar panels, you can protect yourself by generating your own electricity.
Higher Home Value
Depending on where you live, your solar panels might earn you a higher home valuation if you decide to move. On average, youll earn around 4.1% more if your home has solar panels, a boost of $9,274 for a median-valued home.
Long Lifespan
You can expect most panels to last you for 20 years or more. For this reason, most systems come with a standard warranty of between 20 and 25 years.
Low Maintenance
Solar panels need little maintenance beyond the occasional removal or cleaning of dust and debris. If youre concerned about maintenance, be sure to ask your technicians about self-cleaning systems during your solar panel installation.
Cons of Installing Solar Panels
Despite their clear benefits, solar panels have a number of disadvantages worth considering as well. Here are the main cons to keep in mind:
High Installation Costs
Though solar panels save you money in the long run, the upfront costs can be high. You can expect to pay anywhere from $15,000-$20,000, depending on the type and size of the system you choose. Federal tax credits can help offset these costs, but they wont help you avoid them completely.
This hefty price tag means that many homeowners need to finance their solar panels, which means that interest also adds to the initial price.
Often, homeowners will have to wait several years before the savings generated by their solar panels equal the initial cost of the panels. This payback period will vary based on the solar panels youve chosen, how much electricity your solar panels generate, and the cost of electricity where you live.
Inconsistent Solar Energy Generation
Solar energy is an intermittent source of power. The amount of sunlight you receive will vary depending on your area, the season, the time of day, any foliage covering your roof, and the direction your roof faces. Whats more, debris from leaves and snow can hamper your solar panels energy generation.
Solar Panels Take Up Space
Solar panels need a fair amount of space for a proper installation, which means they wont be efficient for all homes. If you have a small roof with limited space, your solar panels will generate limited power.
Savings Are Lower in Certain Areas
While solar panels will save you money, youll get more bang for your buck in areas where electricity costs are higher. Sunny Hawaii, for example, has the highest electricity costs in the country, meaning that solar panels are a great investment. Louisiana, on the other hand, has the lowest average electricity costs, meaning that solar panels wont be as great a bargain.
Should You Install Solar Panels?
In general, solar panels can be a smart movebut only for the right home. Though your preferences may vary, there are a few signs these systems are right for you:
- Your home receives a fair amount of sunlight with little to no foliage cover
- Switching to green energy is important to you
- Energy independence is important to you
- You live in an area with high electricity prices
In the same vein, there are a few situations in which you should never install solar panels:
- You have an aging roof that will need upgrading soon
- Your roof is too small or shaded to install solar panels
- Youre planning to move and wont reap the energy savings
- Youre not comfortable with financing the upfront costs
Note that we still advise speaking with an expert solar panel installer as you weigh your options. Because solar panels have seen so many modern advancements, you might be surprised at what your roof can handle and how much you can saveand you wont know unless you ask!
Consider Getting Solar Panels Today
Installing solar panels on your home offers some major pros and cons, so its important to weigh each one before you make your final decision. These days, the advantages of solar tend to outweigh the drawbacks, which is why its always a smart move to get a quote and speak with an expert to ask any questions specific to your home or installation.
As you work to upgrade your home, dont forget to check out our other content for additional tips and insights!