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Are Solar Panels Expensive? Up-Front Costs, Installation, and Return on Investment

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Over 4,000 temperature records were set in the United States in the first half of the year alone.

The energy used to combat these temperatures damages wallets of Americans. Not only that, but it also further contributes to the world’s climate crisis.

The combination of heatwaves and high energy costs has many people asking the same question. Are solar panels expensive?

A decade ago, solar panel costs were challenging for the average person, but that may not be the case anymore. Here is how solar panels have become more affordable.

Are Solar Panels Expensive?

The cost of solar panels has decreased over the last two decades, but calculating the total cost depends on your needs. The size of your home and the amount of energy usage will determine the cost.

Learning more about the installation process can help you evaluate your home and energy needs. Solar panels are an investment, but luckily, other factors have made them a painless investment.

Financial Incentives

If you opt for residential solar panel installation, you’ll no longer need to foot the entire bill. The federal government created the Investment Tax Credit (ITC) to help encourage homeowners to make energy-efficient choices.

The ITC helps significantly reduce the initial cost of installation. You can deduct about 26% of the total cost from your federal taxes.

Most individual states offer additional credits or incentives as well. For instance, Florida does not require sales tax for solar panel installation. The state also exempts the increased value of your home from your property taxes.

Increased Home Value

Your property taxes may not go up because of solar panels, but your house’s value will. Many homeowners replace old appliances or improve their exterior landscaping to increase a home’s value. These techniques work, but only for a short period.

Alternately, solar panels last 25 to 30 years. So even if you do not plan on selling your home within the next few years, the increased value will be long-lasting.

Solar Panel ROI

An increased home value isn’t the only ROI you’ll see with solar panels. The first perk you’ll notice is a significantly reduced energy bill or no energy bill at all. If your panels create more power than you need, you’ll benefit even further.

Some energy companies will provide credits for any additional energy that you create. Otherwise, you can include a solar battery bank with your installation. This will allow you to bank any excess energy created to use on later low power days.

Solar Panel Benefits

Are solar panels expensive? Considering the lower costs, government incentives, and increased value, solar panels have become much more affordable. Not only can they help you save cash, but they can help you save the environment.

Looking for other home improvements you can make to save money or increase your house value? Check out our other articles for suggestions. You’ll have your house working for you in no time!

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