How Installing Solar Panels Can Help Lower Your Energy Costs
Nowadays, more and more people are veering away from fossil fuels as a source of energy. Apart from the negative effects that fossil fuels have on the environment, they are unsustainable and, depending on their nature, can be costly. A study conducted by the Edison Electric Institute asserts that electricity prices rose 2.5% annually from 2000 to 2006 and continue to be on an upward trend, owing to the rising cost of coal and natural gas.
Solar power as alternative green energy
Nowadays, homeowners are installing solar panels, not only to harness a clean and sustainable source of energy, but also to cut on electricity costs or eliminate them entirely. Investing in solar panels drives your need to depend on conventional electric providers down, which means that the panels will eventually end up paying for themselves over time.
In addition to the savings you incur when you switch to solar energy, the United States government offers significant tax credits as an incentive to those who choose the environmentally-friendly option. The federal solar tax credit, otherwise known as the Investment Tax Credit or ITC, lets you deduct 30 percent of the cost of installing an energy system that harnesses the power of the sun from your federal taxes.
This currently applies to residential and commercial systems, and there is no ceiling or cap to its value. This tax break is available until the year 2019. By 2020, it will lower to 26 percent, and lower itself even further to 22 percent in the following year. From 2022, new installations of commercial energy systems can deduct up to 10 percent of the cost, and no tax break will be offered for residential solar energy systems.
That means that the best time to purchase and have a system installed will be anytime within the next two years, in order to take full advantage of the ITC. In addition to the ITC, you may be eligible to more rebates if you live in a state that has energy saving policies in place.
Benefits of installing solar panels
Solar energy systems will produce electricity during the day, and any excess generated will be fed back in your grid. In this case, your provider will credit you for the export of power, which will further lower your electricity bill. If you manage to eliminate using electricity from your provider entirely, they may end up paying you for the electricity your panels feed back into the grid. That’s hundreds of dollars in residential income annually just for having some!
The average cost for a 3kW solar energy system after the 30 percent tax break can run you up to $10,500. While this may seem like a daunting number, you can expect approximately $600 in savings per year, which means that your solar panels will be able to pay for themselves in 17 and a half years. If you live in a pro-solar state that recognizes energy-saving policies, you may be able to avail of extra incentives from the government that can help you recoup your investment in less time.
For safe and hassle-free solar panel installation, call Handy Crew. From design engineering, applying for a permit, installation, and even looking up and availing of government incentives, Handy Crew can guide you through every step of your solar energy switch. Contact us today for a free estimate