Electricity prices are rising every year. Many are turning to solar panels as an alternative, money-saving source of power. But how much do solar panels cost to install and maintain?
And, more importantly, how much can they save you and is solar worth the cost?
To learn the answers to these questions and more, here is your guide for the cost of Utah solar panels.
How Much Do Solar Panels Cost?
The average cost to install solar panels is between $15,000 and $25,000. Most systems last about 20 years and require very little maintenance aside from cleaning.
But the true cost of solar panels depends on how much money you will save on electricity.
Before installing solar panels, you will want to be sure you will be saving on electricity. This will depend on things like your location, electricity usage, and incentives. Here is what you need to consider.
Your Electricity Bill
The first thing to do is review your electricity bill. The higher your bill, the more you will save.
But be mindful. Electricity rates and usage are volatile. If prices fluctuate, so can your savings. You will also need to check how much power your house uses to assess how many panels you will need to power your home.
Solar panels are designed to last for about 20 years with limited maintenance costs. If your electricity bill is $1,000 per year, then you’ll break even with a system that costs about $20,000.
Sunlight Exposure
Obviously, the more sun exposure your solar panels get, the more electricity they produce.
States like California and Arizona average more sunlight hours per day. You also need to consider the orientation of your home toward the sun, the type of roof, and potential shade.
You can have an expert solar provider like Blue Raven Solar give you a solar rating. You can arrange a rating at blueravensolar.com/utah/. They’ll let you know if your home would be efficient and compatible with solar panels.
Consider Incentives
The federal government offers great incentives for installing residential solar panels. A residential tax credit is available for taxpayers to claim 22% of the installation cost for systems installed by December 2021.
Utah State also offers the Utah solar tax credit, officially known as the Renewable Energy Systems Tax Credit. This credit covers up to 25% of the installation cost but is capped at $1,200.
This residential tax credit is phasing down. From 01/01/22 the cap drops to $800. Then $400 in 2023 and expires in 2024.
Depending on your location and circumstances, these incentives can make installing solar panels very cost-effective. Beware as these incentives are not likely to last. As solar energy is becoming cheaper, these incentives are being reduced.
Leasing Solar Panels
You can also consider leasing solar panels. This is a good option if the upfront cost is too expensive.
Be sure to check how leasing will impact your eligibility for incentives. It is also likely that leased panels will not increase your home value.
Utah Solar
What if you are paying high energy rates and your home has a suitable solar rating?
It is almost certainly worth investing in solar panels while the 22% federal and 25% state tax credit is in place. Not only are will you be saving on energy for the next 20 years, but you’re also helping to save the environment.
If you enjoyed this post about when you should install Utah solar panels, check out the rest of our blog.
