Is Residential Solar Power Worth It?
Solar power has its perks, but it doesn't mean you should invest in it blindly. Solar systems are expected to last for 2-3 decades. It's a big commitment and you need to do your research, and confirm that you're making the right decision.
Below are ways to confirm if installing a solar system is worth it for you.
Solar vs. Utility Costs
How much do you spend on electricity bills every month? For solar power to be worth the cost, it needs to be cheaper or similarly priced as your current utility rate. If the cost of solar power is higher, it doesn't make financial sense.
How do you calculate your current utility rate? You can check the state average or calculate it based on your monthly utility bill.
As for solar, you can ask a local solar company for a quote. Also, remember to ask them to calculate the levelized cost. When installing a new energy source, you have to consider the installation cost, operating and maintenance costs, and fuel costs.
Solar system installation is top-heavy as the operating and maintenance costs combined with fuel costs are almost non-existent compared to installation costs. By calculating the levelized cost, you can compare the cost of solar power to your current utility bill.
If the levelized cost of solar power is lower than your current bill, consider installing solar power. Keep in mind that the levelized cost isn't the same as the cost per watt.
Placement
Before you install a solar system, the installation company will visit your home to determine the best placement. The contractor will need to check the amount of sunlight your property receives and if there are buildings or trees that may hinder direct sunlight.
Solar Power and Home Value
Typically, home improvements such as solar power installation often increase home value. However, the increase isn't as straightforward as you might think. There are two ways to get solar systems: you can choose to lease the system or own it.
The latter will increase your home value, while the former might be a burden. The difference lies in terms of the lease. For example, can you pass the lease to the next homeowner? Does it have a buy-out option? Can you vacate with your panels? If the new owner can't use the solar system, it adds little to no value.
Ultimately, installing a solar system in your home will have more upsides than demerits. With rising utility rates and favorable federal tax investment credit, it makes sense to install a solar system.
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