Solar panels can save money by reduction and sometimes even elimination of a monthly electric bill. The typical residential solar installation could have an upfront investment in the range of $15,000 to $25,000 with a 5-kilowatt system. With the U.S. federal solar tax credit presently standing at 30%, homeowners save thousands upfront, which drops the cost by $4,500 to about $7,500. All in all, depending on the local rates of electricity, it would take a solar panel system to turn in returns within 6 to 10 years, translating into considerable savings for the life expectancy of a system, which is 25 to 30 years.
Prices of electricity continue to go up, thus making solar panels increasingly cost-effective. Between 2010 and 2020, the cost of electricity in the US went up about 14%, while installing solar panels became over 70% cheaper, which encouraged people to adopt solar panel installation. Still, depending on one’s location-for instance, California or Hawaii, where the average price of electricity exceeds $0.30 per kilowatt hour-solar panel adopters have a possibility to reach break-even points faster, as quickly as in just five years.
For businesses that entail high usage of energy, solar panels can save them even more. Firms such as Apple and Walmart are early adopters of large-scale solar because it saves them operational costs and reaches their sustainability goals. Solar panels being installed by Walmart on many of its stores are estimated to save $1 million annually in electricity.
The long-term value of solar panels goes beyond utility savings. In fact, a 2019 Zillow study reported that homes with solar installations sell for 4.1% more than comparable nonsolar homes, which equates to a $10,000 boost on a $250,000 home. Solar installations also provide energy independence for homeowners, protecting them from unpredictable utility price spikes.
Battery storage systems, when integrated with solar panels, improve savings because they store excess energy that can be utilized later. That saved energy could lower the consumption of grid power during peak hours, saving even more when in locations employing time-of-use rates. Systems like the DBS2300Plus efficiently store energy from the sun while adding value through extending power availability and increasing savings.
While utility rates are on the rise, solar continues to be considered one of the most reliable methods for cost-cutting with long-term savings in mind.