There are many pros and disadvantages to installing solar panel on your home. However, it is important to note that installing solar panels can also result in some maintenance costs. Before you purchase your panels, it is important to consider the costs involved. These benefits are detailed in this article. Learn more about solar panels for your home. You can find out if you are a good candidate for solar panels.
Cost of installing solar panels
Depending on how big your home is and how much energy you use, the cost of installing solar panel panels will vary. The amount that you save depends on several factors including the size of the solar panel array, your roof condition, and the electricity rate. But the savings you can anticipate will make the investment worthwhile. Here's how to estimate the cost of installing solar panels on your home. First, estimate how much electricity you use each month.
Find out the average price of electricity in your local area to figure how much money you'll save within the first year. If your solar array has a lifespan of about 25 years, you'll probably find that you'll see a return on investment in as little as two years. However, you will need to take into account inflation in utility costs. You should also consider the fact that electric bills increase by 2.2% annually.
Tax credits
For solar panels installed in your home, the government provides a tax credit. The credit can reduce the cost of your system from forty to seventy per cent depending on how many panels are purchased. There are restrictions. The credit cannot be used if your tax liability is less than $800. To cover the cost for installing solar panels, you might consider getting a loan.
There are two types for tax credits on solar panels: federal or state. The federal credit is worth 10% of the cost of your equipment. You can get a credit of up to $300 for installing solar panels in your house. Credit can be claimed on your individual tax return. The IRS does not require any specific documentation. However, it is important to keep all receipts for audit purposes. These credits are available for new and used systems.
Return on investment
The solar panel's payback period is calculated by taking into account both the total cost to install and maintain the system as well as the annual benefits, such the avoided electricity costs. Once you have calculated the benefits, divide them by the electricity cost before installing the panels. An average solar system will pay for its self in about eight years. To determine if your area has sufficient sunlight, click here. Charleston, S.C. has a solar-electric system that costs around $13,000. There are incentives available for 30 to 65 percent. This means you can expect to get a return of $20 or more within eight years.
In addition to producing clean energy, solar panels also produce electricity. This can help you save money every month. These systems are also able to be used in the daytime when electricity is not required from the grid. This will allow for you to decrease your dependence on the grid. It may also give you an opportunity to live off-grid if there aren't incentives in your area. To capture the benefits of solar panels or other home energy technologies, a simple payback period will not suffice.
Maintenance costs
Solar panel installations are not subject to active maintenance. Some homeowners may choose to have their solar system checked and cleaned. This service is not nearly as common for residential systems as it is with commercial ones. It can cost a few hundred dollar per year. You can avoid paying this additional cost by scheduling annual maintenance prior to installing the system. A yearly inspection of your panels could also be part of your maintenance costs.
An annual solar inspection costs between $150 and $180. This inspection will verify for corrosion and wear, loose bolts, crack glass, or panels. Repairs may be required if these items are found. The cost of repairs can range from $650 to $384 for each panel. You may also need to trim trees or relocate the solar panel system. Some companies offer bundle warranties. Depending upon how much electricity is used each year, annual inspections or cleaning can cost between $150 and $384 per solar panel.