Did you know that one home switching from fossil fuels to renewable energy, like solar panels, has the same carbon emissions impact as planting 150 trees?
If you are want to benefit your wallet and the earth, you should look into solar panels. In fact, due to the government’s focus on climate change, saving money with solar panels has never been easier!
How much money do you save with solar panels? Keep reading our guide to learn the answer and the benefits of solar.
How Much Money Do You Save with Solar Panels?
Solar panels have dropped in price 60% since 2011 and about 70% since 1998.
Solar panel savings depends on your location, average energy consumption, and the price offered by solar companies in your area.
In addition to saving you money on your electric bills, installing solar panels increases the value of your home, and you will receive an additional tax break. However, it is important to note that the tax break does vary by state.
If you are in Kentucky and want to invest in home solar installation, visit https://blueravensolar.com/kentucky/ for more information.
Benefits of Solar Panels
When buying solar panels or researching if home solar panels are right for you, knowing the benefits beyond solar panel savings is important.
The top benefits of solar panels include:
- Reduced air pollution
- Reduced water pollution
- Decreased need for nonrenewable resources
- Reduced hazardous waste
- Helps the fight against climate change
Other benefits include low maintenance costs, diverse applications such as photovoltaics or solar thermal, and constant technology development.
How Much Do Solar Panels Cost
Solar panels can range from $10,636 to $26,460 after the 30% federal solar tax credit. You do, however, get 30% of total system costs from the equipment and installation as a federal income tax credit.
The greater number of panels, the greater number of kilowatts. While it will cost you more upfront to buy more panels, it will save you more money in the long run.
It depends on how much you spent on the project when it comes to earning back your investment.
Ways to Finance Solar Panels
If you want to install solar panels on your home but are worried about the costs, don’t worry! If you cannot pay out of pocket, there are several different ways to finance your solar panels. The top three are below.
A benefit of a personal loan is that many do not require collateral. However, a downside is that the interest rate is likely to be a little higher.
If you have a high credit score, you’ll most likely get the lowest interest rate available.
The Federal Housing Administration’s PowerSaver loan gives homeowners three options:
- PowerSaver Home Energy Upgrade: $7,500
- PowerSaver Second Mortgage: $25,000
- PowerSaver Energy Rehab 203(k) loan: $217,500 – $625,000 depending on location.
These loans typically require a credit score of at least 660 and a 45% debt-to-income ratio.
Home Equity Loan
A home equity loan allows you to borrow money from the equity in your home. The bank typically finances up to 85% of the equity in your house.
These loans also come with a low interest rate.
Invest in Solar Panels Today
We hope this guide answered the question “How much money do you save with solar panels?”, as well as any additional solar panel questions.
Check out our website if you enjoyed this guide and want to learn more about insurance, money, or investing.