There has been a surge in interest in solar panel systems due to the increase in energy prices and new tax incentives for eco-friendly home improvements.
According to experts, solar systems are an excellent option for homeowners who can benefit from them. It may not be suitable for all homes, but for those it does work for, it can significantly reduce heating bills and minimize the negative impact on the environment caused by the burning of fossil fuels. Although the initial cost of installing a solar panel system is still high, it has decreased substantially in the past decade.
- The cost of solar panels has significantly decreased in recent years, making them more accessible to people living in remote areas.
- A recent study has revealed that covering only 50% of the world’s rooftops with solar panels would meet the world’s annual electricity needs.
- Regions such as Asia, North America, and Europe are potential hotspots for rooftop solar energy generation. However, storing solar energy can be expensive, which may hinder areas with varying weather conditions from efficiently utilizing solar panels.
- The cost of rooftop solar panels has decreased by up to 79% since 2010. This decrease in cost has made rooftop solar photovoltaic systems even more appealing to households and businesses aiming to reduce their reliance on electricity grids while minimizing their carbon footprints.
The Cost of Solar Panel Systems
The cost of solar systems varies depending on factors such as the size and quality of the solar array, and the country in which you reside.
On average, it takes around 6 years to break even and recover the cost of solar panel systems. Once you have reached this point, your solar system becomes free to use until the equipment wears out.
Generally, solar panels have a lifespan of 20-25 years, whereas the solar system’s inverter is guaranteed for 10 years. The inverter plays a crucial role in converting DC electricity generated by solar panels into AC electricity that powers your home.
Go with Battery-based Solar Panel Systems?
Although batteries are gaining popularity, most solar-powered homes do not have them. Instead, excess energy is sent back to the utility company as credit towards power usage when the solar panels are not generating enough, such as during the night.
However, it’s important to note that without a battery, if your utility loses power, your home will also lose power, even when it’s sunny outside. This is primarily due to safety concerns. If your solar panel system is still producing electricity and sending it to the grid during an outage, it could pose a risk to those working on the lines.
Increase the Value of Your Property
According to a study by Zillow in 2019, homes that have photovoltaic solar panels installed fetch a higher price of 4.1% compared to homes without solar panels. This means that on average, the installation of solar panels adds around $9,274 to the property value of a median-valued home. This additional value is significant, considering that it covers a substantial portion of the total cost of the solar system after claiming the solar tax credit.
Therefore, even if you are planning to move in the next few years, investing in solar panels is a wise decision. Additionally, you can also save money on energy costs before you move out.
Solar Panel Systems are a Smart Investment
As a homeowner, investing in a residential solar panel system can yield a return on investment ranging from 15-20%. In just 5-7 years, this investment can pay for itself and continue to provide benefits for the next 20-30 years.
In comparison to stock market investments, a solar system’s return on investment is much more stable and carries a lower risk profile. With solar systems, you can expect consistent savings on your electric bills, making it a reliable and secure investment. It’s important to note that this benefit is often overlooked when considering the investment case for a home solar panel system.
Beneficial for the Environment
Using solar energy is beneficial for the environment as it does not pollute the air or release greenhouse gases. It serves as a substitute for non-renewable power sources such as oil, gas, and coal, eliminating the need to use fossil fuels to generate electricity.
Many governments around the world aim to minimize the use of fossil fuels, and reducing our carbon footprint is a necessary step to accomplish this. The most effective approach to achieve this is by using solar panel systems.