Benefits to Buying a Home Solar System
There are many benefits to buying a home solar system. Aside from providing you with free electricity, a home solar system increases the value of your home and generates passive income. You can take advantage of tax credits and zero-down loans to make your investment even better. Here are a few reasons to install your own solar panel system:
Cost of home solar system
The cost of a home solar system will vary depending on how many solar panels are needed to power your entire house. The number of bedrooms isn’t necessarily indicative of energy use, but it is a good starting point. Each household uses energy differently, so a good way to calculate how much a home solar system will cost is to examine your electric bill from the last month. Similarly, you should calculate the cost of a battery system if you intend to use it for backup power.
Depending on how big you want your system to be, the cost will vary, ranging from $30000 to $60000 for a 10 kW system. For a fully off-grid home in an area with moderate sunlight and high energy needs, you may be able to pay around $70,000 for a 10 kW solar system. However, if you want to go off the grid, you’ll have to invest in additional batteries and a backup system such as a generator.
The federal government has offered tax credits to encourage the development of solar energy systems. The current solar tax credit is worth 26%, which means a $20,000 solar system installed in 2021 can be claimed. This credit will carry over into 2022, so if you installed a solar system in 2022 and still have not used it by then, you’re still eligible for the full $2,200 federal investment tax credit. However, you should understand that this credit is only available to you if you own a solar system and owe taxes on the purchase.
The tax credit can be applied to your primary residence, second home, or investment property. If you have a solar system installed in your primary residence, you may qualify for the tax break. The amount you receive will depend on whether you’re installing the system on your primary residence or a second home. If the system isn’t operational yet, you can apply it to your second home. You can even carry the credits forward into the next year if you have no other solar panels.
Return on investment
The annual financial savings that solar panels can provide can help offset the costs of a home solar system. The cost of installing a home solar system varies depending on the size and equipment used. You should factor in any state or local rebates and tax credits when estimating the total cost. Also, consider buying solar renewable energy certificates (SRECs) if they are available in your area. The financial benefits of a solar panel system far outweigh the initial cost.
Ultimately, the payback period of a solar system will vary depending on the efficiency of the panels and the cost of electricity that you were paying before you installed your solar system. The company that installs the system should be able to determine the payback period. In general, a solar panel system can pay for itself in about eight years. While this may seem like a long time, the payback period for a home solar system can be significantly shorter.