One of the main reasons people get residential solar panels is to cut electricity costs, which can spiral out of control during SoCal summers. Homeowners can enjoy immediate upfront cost savings as well as long-term financial savings in addition to taking advantage of state and federal tax incentives.
1. Electricity savings
Homeowners using solar panels are able to avoid the frequent rate hikes that can raise the cost of using fossil fuels. While how much power is generated and used varies widely by home, most homeowners can expect an average savings of nearly $1500 in just the first year alone, not counting any additional income made by selling some of the energy back to the grid. Even if you lease rather than buy, you are still locked in to a more predictable rate.
2. Tax incentives
Incentives vary by state. In California, homeowners can exempt the equipment from property taxes, make money by selling excess electricity produced back to the grid, and receive a 30 percent tax credit, which can save the average homeowner up to $9,000 when installing solar panels. There are also funding options that help people increase the energy efficiency of their homes.
3. Property value
One overlooked financial benefit of solar panels is the value it adds to the home. Even if you aren’t planning to sell your home in the next few years, solar systems typically last anywhere from 25-30 years. A study from the Lawrence Berkeley National Laboratory found that homebuyers will pay an additional $15,000 for a home with a solar energy system.
When you buy a solar system outright, it can take anywhere from 5 to 10 years to pay off, but over the life of the solar panels you can save as much as $20,000-$25,000 dollars. Even with a loan for solar panels, homeowners can still expect to save around $12,000 during the life of the solar panels.
Looking for solar panels San Diego residents swear by? Turn to CES Solar San Diego. We’ve been helping local families go solar for years and can help you too. Give us a call today at 1-855-45-COAST and ask about a free consultation. We look forward to hearing from you.