Can Switching to Solar Save You Money?

You work hard for the money you earn, and it can be quite the sting when the monthly utility bill arrives and eats up a good chunk of your income. Many homeowners can relate to this feeling, and like you, they wonder whether switching to solar can lower the cost of enjoying the comfort and convenience of modern electrical and HVAC systems. 

For many homeowners, investing in solar energy solutions can indeed reduce monthly utility bills and add value to the property. Over the long term, solar panels are a cost-effective investment with a proven track record of generating positive returns. 

What Makes Solar Energy Cheaper for Some?

Solar can be a positive solution for most homeowners, but there are a couple of exceptions. Certain factors need to align in order for solar energy to make sense. These include:

• Space and sun exposure: Solar systems need to be installed on either a roof or open space in the landscape or above the driveway. The installation space must receive sufficient sunlight in order to generate sufficient power for the home. 
• Local energy rates: In most cases, local energy rates are rising, which makes solar a cheaper alternative. 
• Battery storage: In addition to purchasing solar panels, it’s strongly recommended that you install battery storage to use stored energy during evening hours when solar energy production is significantly reduced. 
• Energy usage: For homes with considerable energy consumption, solar panel systems significantly reduce reliance on power from the utility provider. Conversely, for homes with minimal energy consumption, solar panels can generate far more electricity than necessary.

4 Important Considerations

While there’s never been a better time to make the switch to solar, there are a few factors to consider beforehand:

• Eligibility for rebates: Talk to your trusted tax professional before starting the process. Most homeowners will be able to take advantage of federal or local tax rebates or other incentives. But it’s always a good idea to verify first.
• Renovation: If you plan on making any changes to the layout of your house or you’re replacing your roof soon, it’s best to do so with the solar setup in mind to get an optimal arrangement.  
• Moving: If you plan to move in the next few years, then panels and the value they add to your home are less likely to generate a positive return on your investment. But they can increase the property value of your home as solar is attractive to many buyers.
• Check net metering: Find out if your generated energy would be eligible for a local net metering program. These policies allow homeowners to claim electricity bill credits that can nearly zero out the utility bill. While it’s still cost-effective to make the switch without this option, you won’t be able to take advantage of those extra cost-savings.

None of these factors disqualify someone from installing solar panels at their home. They can just make a difference in the installation timeline or monthly costs. But even if your space isn’t a perfect fit for a quick installation, the benefits far outweigh the difference.

The Benefits of Solar Leasing

An alternative to purchasing solar panel systems is to lease them. Solar leases can lower the upfront cost and reduce your commitment. In many cases, leases still offer access to net metering, which means that you can use your panels to generate a positive return without actually having to own them.

For homeowners eager to dip their toes into solar energy, leasing can be an excellent opportunity that allows you to test solar energy within your home without having to make a significant financial commitment. 

National Solar Incentives

The Inflation Reduction Act has established numerous incentives and credits for homeowners ready to adopt “green” energy solutions. Among these are 30% federal tax credits for solar systems installed before the end of 2032. Of course, many other state programs and local incentives are available from utility providers.

Therefore, it’s advisable to speak with a trusted tax professional and licensed solar installation provider to learn more about the programs available, eligibility requirements, applicable filing deadlines, and other crucial details.  

Schedule Your Consultation With Solar Liberty Today

At Solar Liberty, our specialists can help you determine which systems and configurations are best suited for your needs and desired outcomes. We offer a broad range of solutions from industry-leading manufacturers and can help you select, install, and maintain the optimal configuration for your home.

Moreover, we can help you navigate rebate programs, net metering, and other factors that can significantly reduce the cost of investing in solar energy. 

When you’re ready to shrink your monthly utility bills down to size, contact the specialists at Solar Liberty to schedule a consultation with our team.