As per the Solar Market Insight Report 2021, 500,000 solar systems were installed in the US in the past year. This is despite the pandemic and its effect on global economies and therefore, purchasing power.
While most people are aware of how solar energy can help them and the environment, several homeowners are hesitant to take the leap. A common concern is not knowing the actual savings that are in store.
Today, we’re helping you understand this aspect of a solar conversion.
How much money can I save per annum?
To understand how solar energy can help you save money, start by estimating your total electricity expenditure in a year. In the United States, a typical residential customer uses about 10,694 kWh of electricity annually. By installing an appropriately-sized solar panel system, the average American household can save up to $1,390.22 in energy bills (per year). You can determine this by multiplying the national average electricity rate of $0.13 per kWh by 10,694 kWh. This amounts to savings in excess of $115 each month!
When will the savings begin to reflect?
Once your home’s solar panels are functional, you’ll see a noticeable decline in your electricity bill from the very next month. What’s more, to understand how quickly you’ll recover the investment, simply divide the total solar panel cost or initial investment by your annual savings ($1,390.22, as outlined above). The answer will tell you the number of years it will take you to earn a total return on investment. After this period is over, everything is a profit, minus the installation and maintenance costs, of course.
If you choose the right solar service provider, you can earn a higher profit, sooner. For instance, when you opt for SouthWest Sun Solar, the cost of installing solar panels is nil, and you can enjoy free repairs too. As a result, you have fewer costs to bear.
What tax benefits can I enjoy?
With abundant sunshine and clear skies, California is truly a Golden State that lends itself well to solar energy systems. What’s more, when you invest in solar panels in California, you can enjoy a number of incentives that further bring down your out-of-pocket expenditure.
For instance, 26% federal tax credits are available for those who purchase and install solar systems by December 2022. This amount will drop to 22% in 2023. Additionally, adding a rooftop solar panel improves the value of your home, but you don’t have to pay property tax on this added value. Apart from this, you can also get cash incentives and rebates under schemes like the Single-Family Affordable Solar Housing Program and Self-Generation Incentive Program.
Once you compare the one-time expense with life-long savings, it’s clear that not only are solar panels efficient, but they also help you save extensively. Since the price of energy is only climbing upwards, consider powering your home with solar energy today. To understand feasibility and the exact savings you can enjoy based on your consumption pattern, call 714-582-3909 or get a free quote online. We also have a referral program where you can earn $500 for each referral, so get started today!