Buying solar panels for your home is a valuable investment. We all know the costs, but what about the benefits? Here are three financial benefits to consider in determining whether a solar investment is right for you.
Generate your own energy, save on your energy bill
The energy you produce from solar panels means that you will buy less energy from your local power company. Each kilowatt-hour generated corresponds to the savings made. A 6-kilowatt solar installation will generate approximately 7,674 kilowatt-hours (kWh) per year. With a standard electricity cost (about 11 cents), this represents a savings of about $ 844 a year. And as energy costs continue to rise, the value of your savings will increase over time.
30% federal tax credit
The federal government offers tax incentives for the purchase of solar energy and other renewable energy assets. When installing a solar panel in your home, you will be eligible for the federal residential energy tax credit, which equals 30% of the cost of systems installed before December 31, 2019. If you install 6 kW by Solarize Cincy (the estimated price of $ 15,000), you are eligible for a $ 4,500 tax credit.
SRECs, a state-based credit system
Most states provide additional credits for investments in solar energy. In Virginia, utilities must purchase a small percentage of solar energy for each kW of energy they sell to their customers.
The renewable solar energy credits (SREC) represent a megawatt-hour of electricity (1,000 kWh). For every megawatt-hour (MWh) created by your system, you can sell the renewable energy attribute on the market. Due to the changes adopted by Virginia earlier this year, the value of SREC has decreased. However, the current market will pay about $ 10 for SREC. As in the previous example, a 6-kilowatt system could generate 7 SRECs or 70 USD per year.
How much do solar panels cost?
Here is the previous example in more detail:
We bought a 6-kilowatt solar photovoltaic system ($ 15,000)
From this cost, we spend less energy because we create ours ($ 844 the first year or $ 27,765 in 25 years)
In addition, we received a federal residential energy tax credit ($ 4,500).
Finally, we sold our renewable solar energy credits (SRECs) ($ 70 per year or $ 1,630 over the expected life of the system).
About the Company
10432 Balls Ford Rd. #300
Manassas, VA 20109
