Saving money and the planet

Many consumers looking to cut down on their electricity bills are interested in the possibility of installing a solar panel system in their homes to benefit from the most readily available source of renewable energy - the sun. While that sounds as simple as paying for the panels and their installation, however, there are a few factors to be considered in making sure that the initial cost - which can be significant - will be made back in power savings and other benefits in the long run.

Are solar panels a good investment?

1. Decrease Greatly Electricity Rates

Given an adequate amount of available sunlight to convert into energy, consumers residing in areas with high electricity rates will get the most benefit from an investment in solar panels. Personal finance blogger Ryan Luke says that on average, an American household can save around $17,696 over 25 years by switching to solar. He deduces this figure by subtracting the average cost of a solar panel installation in most states, which is $16,177, from the total electric utility cost of $33,813 in a span of 25 years.

2. Fully Utilize Sunlight Exposure

An adequate supply of sunlight should be re-emphasized, of course, as panels can only produce energy from what amount of sunlight it can absorb. This makes solar panels a particularly worthwhile investment in sunny, dry regions such as the USA's Sun Belt, much of Africa, and Australia. The most efficient solar panels have a cell efficiency of around 20 percent, meaning a fifth of the sunlight that hit the panels will be converted into electricity.

3. Story Behind Solar Panel: Incentives, Moral and Financial

Governments are motivating homeowners and businesses to invest in solar panels. In the United States, a tax credit is available on federal taxes based on the upfront cost of installing a solar panel system, although from 2022 onward it will only be available for commercial properties. State governments also offer incentives, such as New York's 25% tax credit on solar power investment, currently capped at $5,000. Solar rebates - cash incentives subtracted directly from the purchase cost of the equipment - are normally granted through programs that are managed by governments or utility companies. Where these are available, demand will be higher for solar power systems, but sourcing professionals should be careful to note the eligibility requirements of the programs in their markets to ensure they are buying the right products.

Aside from a notable reduction to the electricity bill, investing in solar energy also makes a great contribution in saving the planet. It's been common knowledge for years that non-renewable energy sources such as fossil fuels will eventually run out - very bad news if renewable energy doesn't take off on a large enough scale. In addition, the use of solar panels leads to better air quality, as it provides electricity without burning.

Where to Buy Best Value Solar Panels: 2022 Solar Purchasing Guide

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