How Much Money Can Installing Solar Pane ls Really Save?

For most homeowners the decision about whether or not to install solar panels really comes down to the cost of the solar panels and installation versus the long term savings that using solar energy can provide. So how cost effective is it to install solar panels?

No one can calculate exactly how much money you can save by using solar energy because energy prices fluctuate and there are other factors that need to be taken into consideration. But, many homeowners that have switched to using solar energy report that they have cut their energy bills from usually 50% to as high as 90% which can add up to a lot of money saved over the course of 20 years.

Another factor to keep in mind when you are considering buying solar panels for your home is that homeowners can usually get large grants and rebates from state and Federal programs to help defray the cost of buying solar panels. So you might be able to install solar panels in your home for a lot less than retail price if you quality to take advantage of those incentives. Many solar panel dealers will help you fill out the paperwork necessary to get those rebates and grants.

If you are building a new home then the cost of buying and installing solar panels for energy can be folded into your home loan or home mortgage so that you won’t have to put in any money up front to install them. Since the solar panels will be part of the home and will add value to the home most mortgage companies look at the cost of solar panels as a home improvement.

If you have a pre-existing home that you want to fit with solar panels you can take out a mortgage or secure a home equity line of credit to finance the up front cost of the solar panels and the monthly energy savings that you have as a result should more than pay for the loan payments. The home improvement of adding solar panels also increases the value of the property.

Once the solar panels are installed it takes awhile for the cost of the installation to be absorbed but after that point the amount of money that you save can be hundreds of dollars per month depending on the price of electricity and how much electricity you use. An existing home usually reaches the “payoff point” where the solar panels have paid for themselves in savings after about 6-8 years. A new home will reach the payoff point almost immediately.