Is Solar Power Worth It for Your Home?

In a world where resources are constantly diminishing and becoming more expensive, it's important to find ways to conserve. One area we've focused a lot of our time into is figuring out how to create energy without using fossil fuels. For many people, the most logical answer to this problem is solar power. If you're thinking about investing in solar power for your home, here's what you can expect in terms of the upfront investment and the results later on.

Cost

The first thing you have to consider when you're thinking about adding solar power to your home is whether or not the upfront cost is worth the return on investment. Of course, this depends on several different factors. Some homeowners may spend several hundred dollars on their monthly energy bill while others may spend less than $100. The more you spend each month, the more you stand to save in the long run.

According to NerdWallet, the average cost of solar panel installation is about $15,000 before you include tax credits and other incentives. There is a tax credit available for just about every state, including Hawaii. One important thing to note is that a system has to be fully installed and functional in order for you to receive this tax credit.

When you factor in the tax credit, you're looking at a total cost of somewhere between $10,000 and $15,000 for a full home solar system installation. While that might seem like a lot, it's important to look at how much you stand to save over time.

Return on Investment

Now that you understand how much solar panel installation generally costs, it's time to look at what you can save by using solar power for your home. There are tons of factors that determine how much solar power will save you, so it's important to look at all of them.

First off, you need to think about how much sunlight your solar panels are getting. A Hawaii solar panel will do a lot better than an Alaska solar panel because there tends to be a lot more direct sunlight in Hawaii. However, you also have to consider the cost of electricity where you live. Each state pays a different amount per kWh, so you might not stand to save as much if electricity is affordable in your area.

Another thing you want to look at is how much energy you tend to use. The maximum amount you can save is 100% of your yearly energy usage, so this is an important number to know. If you only tend to spend about $100 on your monthly electric bill, the savings you'll see by installing solar panels won't be very impressive. However, the opposite is true if you find yourself spending $200 or more every month to keep your home cool and comfortable.

Finally, you need to know how much of your electrical needs can be met by your solar panel system. This depends on the size of the system, the amount of sunlight you're getting and the amount of electricity you use. If your solar panels are only able to cover 50% of you power usage, you're not going to save a ton of money. If you can get a solar panel system that can cover at least 90% of your home's power usage, that's when you start to see big savings. After a decade or two, your solar power system will have paid for itself and you'll be getting nearly free electricity.

With the shortage of so many natural resources in today's world, it's important to find alternative ways to power our homes. If you're in Hawaii, solar panels are a great way to capture some of that natural sunlight and turn it into energy. Talk to a local solar panel installation company to find out more about the benefits of solar power in Hawaii.