Solar panels are expensive to make and they require qualified installers. They must also be complemented with a reliable power supply. However, the savings achieved are normally higher than their upfront cost.
Solar power costs are determined by several factors. The most efficient solar panels tend to be the most expensive. Also, consider that the number of solar panels needed increases for larger households.
Comparing the Costs and Benefits of Solar Panels
Solar panels may seem more expensive than conventional diesel generators at first look. However, solar panels operate with sunlight, which is a free energy source. They also have much simpler maintenance requirements than other power generation systems. On the other hand, a diesel Genset depends on fuel deliveries to stay operational. Maintenance is also more demanding since the generator is exposed.
In a few words, solar panels are more expensive than diesel generators at first look. However, when total ownership costs are considered, it tilts in favour of solar power. Since sunlight is free & maintenance is minimal, solar panels can achieve low costs per kilowatt-hour.
The price of installing solar panels determines how they will perform financially. Getting quotes from several solar companies is strongly recommended. You should also ask for a detailed breakdown of what the solar offer includes.
Installing Solar Panels as an Investment Decision
For many homeowners, going solar can be as lucrative as investing in a small business. While solar panels are normally installed to reduce bills, they may bring other benefits. Keep in mind you need reliable information to decide if it is worth installing solar panels. The first step is to contact a qualified solar provider to get a professional assessment. This will give you accurate data on solar system prices and how much you can expect to save.
The money you save on electricity bills is strongly determined by local conditions:
Solar panels are more productive in sunny locations. This is because there is more sun, which means they can produce more electricity.
Solar energy is more valuable in places with expensive electricity. If two solar panel systems have the same energy output, savings will be greater in the location with the highest kWh prices.
A lesser-known benefit of solar panels is that they increase property value. A building that can produce its own electricity is worth more than a building that depends 100% on the power grid. Also, many states give you a tax exemption for any increase in home value that is due to a solar panel system. In other words, your home is worth more and it has smaller power bills, but your property taxes stay the same!
Depending on local regulations, it may be possible to make money from your solar panels. Panels are only productive during the day, and most of their energy output occurs around noon. On the other hand, homes consume energy during the day and night. However, you can become a small-scale electricity supplier if you have net metering.
Net metering allows users who generate their own electricity to export energy back into the grid. If the balance is in your favour then it is subtracted from the electricity consumed from the grid.
Depending on how large your solar panel system is, it may be possible to bring the power bill down to zero or even.
Some power companies carry over your balance to the next bill, while others actually pay you in cash.
Solar panels can be considered a solid investment if you can pay off the investment within a reasonable timeframe. Solar panel manufacturers normally offer several different warranties. However, the payback period can be less than 5 years under favourable conditions.
Using high-quality products is important to get the best results with solar power. Ideally, a solar panel system should be properly installed and covered by warranties, but it should also offer an attractive return for every dollar spent.
How Solar Panels Can Pay for Themselves
For homeowners with access to low-interest loans, it may be possible to go solar with zero net cost. The solar panel installation can be paid with the bank’s money, and then you can use power bill savings to cover the loan. If the annual savings are higher than the loan payments, your solar power system can purchase itself.
Solar panel systems seem expensive if you only focus on their sales price. However, their operation and maintenance costs are very low and they have a long service life. The upfront cost of solar panels is normally recovered multiple times in the form of power bill savings.