Do residential solar panels offer a good return on investment?

residential solar panels return on investment

The popularity of residential solar panels has risen significantly in the past few years. More and more people want to enjoy the benefits of solar power and improved ways for a good return on investment. High-quality San Diego solar panels are a wonderful, energy-efficient addition to your home or business, and for a good reason. Not only are they an excellent environmental choice, but they are also a smart financial investment.

However, if you are thinking about going solar, one of the first things that must have crossed your mind is – the cost. While it may seem like a large investment at first, installing solar panels on your roof means thinking about the future – both yours and the planet’s. If you’re still on the fence, the residential solar panels return on investment can be the deciding factor in your dilemma.

Cost of equipment

There are several factors that contribute to the price of your solar panels, such as the brand, the size, and quality of materials, as well as the durability and capacity of solar panels, etc. You need to closely examine each one of them to determine the final cost of your investment.

As an example, let’s take a look at one of these factors. One of the most important things to consider when switching to solar power is the type of solar panels you need. There are different solar panel sizes available on the market, each made to match different energy requirements of a property. Before even trying to calculate your return on investment (ROI), you first need to find out which size fits your home and your consumption habits. The larger the size, the higher the initial investment cost.

Installation

Before investing in solar, you may be wondering if you should opt for a professional solar panel installation or go the DIY route. Although the DIY approach might seem appealing initially, to install solar panels properly, you need to be familiar with construction work and learn how to connect electrical components.

Not only will you need to determine the adequate size of your solar power system and buy adequate equipment, but you will also need to dedicate your time and effort to successfully complete the project – by yourself. Not to mention that you’ll be running the risk of injury and electrical fires.

If you want to be absolutely certain everything is in its place, you need to factor in the cost of hiring someone to do the job. This usually includes a general contractor, a roofing contractor and a licensed electrician. A renowned solar company boasts experts who have been designing and installing solar panels for years. They can adequately assess your home’s energy needs, obtain the necessary permits, and provide warranties on their work.

Various incentives

Solar is the energy of the future and the goal is to bring this clean, renewable energy within the reach of everyone. This is why the government offers several ways to help you during your switch. You can get a return of up to 30% of your initial investment, including the cost of parts and installation.

But this is not all. There are rebates and grants which vary from state to state. The Department of Energy has the full list of every type of tax credit and return available to you depending on the area, so don’t hesitate to check it out and make the most out of going solar in San Diego or anywhere else in the States.

Payback period

While wondering about residential solar panels return on investment, you are actually trying to determine what is known as the ‘payback period’. When you invest in solar panels, the energy consumption of your home will go down.

As time goes by, these accumulated savings will at one point be equal to the initial cost of solar panel installation. This means that after a certain period you will have earned the invested money back! Just compare your past electricity bills with the new monthly spendings and you’ll see a huge difference.

Changing costs of utility

One thing you can never truly fully account for is the change of the costs of electricity rates. The cost of electricity has been known to rise over the past and it can sometimes be hard to calculate. The good news is that if you fully switch to solar power, you will not be affected by cost escalation. Even if you only partially switch to solar, you will still experience perks and quirks of solar panel installation to a considerable extent!