Slash Your Energy Bills By Installing Solar Panels With These Money Saving Tips

Installing a solar energy system in your home can be expensive. You need to budget for the panels, installation, and maintenance in the years to come. However, the savings offered through using solar energy make it a really worthwhile investment. There are also government schemes to help you with financing if you need them. Here’s a guide to the costs you can expect.

Note that costs are approximate and will vary according to your home. It’s a good idea to get a bespoke quote for your individual requirements, or use the many online calculators to figure out your approximate cost savings.

Power and parts

Home systems range from 3kW to 8 kW. A 3 kW system could cost around $9,000 for panels and other parts. The cost has come down a lot in recent years and continues to change, so you might find it to be even cheaper in the future. Bear in mind if you live in a less-sunny location you’ll need more panels.

Installation and operating the system

Installation of this same system could cost around $7-8,000, and operating it around $3,000. Grid-tie installations are a great idea as any extra power you produce goes into the grid, and is credited to your electricity bill.

Incentives and tax credits

Many states offer incentives to help make solar panels more affordable. California for example has the CSI, which is a scheme whereby you get a cash rebate for installing solar panels. Solar panels are also eligible for federal tax credits, which can be enough to cover the costs of installation. The above costs don’t include any of these cost savings.

Financing options

To help you afford solar panels, the FHA offers special energy-efficient mortgages and home loans with generous repayment periods. Your individual state may also offer financing. If you don’t want to buy then leasing or ‘power purchase’ may be a solution. Solar lease means the installer retains ownership and you may a monthly lease. Power purchase means that a third party pays for the system and you pay an agreed set price for the electricity instead.