Purchasing solar panels for your home can be a significant, but valuable investment. While costs vary depending on the size of your home and your power needs, there are some clear financial benefits that are consistent for all homeowners.
Energy Bill Savings
With the installation of solar panels, you immediately will be purchasing less energy from the local utility. Each kilowatt hour that your system generates is money in your pocket. For example, an 8.5 kilowatt solar array typically generates around 10,748 kilowatt hours (kWh) each year. That can add up to more than $1,200 savings in a single year. As energy rates continue to rise, the savings only increases.
Federal Tax Credit
The federal government is still offering tax incentives on the purchase of home solar systems. The current tax credit is equal to 26% of the cost of a system installed by December 31, 2020.
State Tax Credit
The Residential Arizona Solar Tax Credit also offers savings – 25 percent of the cost of your solar panels, up to $1,000. This credit is taken directly off your personal income tax in the year you install the system.
On average, solar panels raise a home’s value by around four percent. That can be a significant boost if you’re considering selling your home in the future. While the payoff based on the median home price is significant, it’s not likely to immediately offset the purchase and installation cost of solar panels completely. So, it makes sense to consider how long you plan to be in your home prior to installing panels. In other words, timing matters.
Want to learn more about the specific value you can gain from solar? Call the experts at Cool Blew Solar today. We’ll be happy to answer your questions and provide you with a detailed quote to determine if solar is right for you.