The average solar panel system costs about $14,000, not including installation. The total cost of solar panels depends on where you live and the size of your home.
You may want to install solar panels in your home, but you don’t have $14,000 or more lying around. Is it possible to get affordable solar panels for your home?
It is, and we have a few ideas for you. Read on for tips to make solar panels affordable.
1. Tax Incentives
The federal government offers a tax credit for qualifying solar panel installations. The qualifying part means that you have to install a photovoltaic (PV) system.
You’ll be able to get a tax credit of 22% of the cost of the system. The caveat is that you have to have the system installed before December 31, 2021. After that, the tax credit goes away.
A tax credit is a lot different than a tax deduction. A deduction is simply subtracted from your total income for the year. A tax credit is directly subtracted from your tax bill.
Your state might have tax incentives as well.
You’ll want to check with your accountant or tax advisor to see how a solar install becomes more affordable with tax incentives.
2. Find a Good Installer
You take the DIY route to make solar panels more affordable. That’s not advisable considering that you still have to pay for the panels yourself and get the permits.
You still could end up paying more because you don’t know what you’re doing.
One of the ways you can save money is to make sure you get the right-sized panels. Getting panels that are too large or not installed in the right place
The right installer knows everything about solar panels. Some offer financing and can find ways to help you save money. You can find a good example of a solar installer at https://blueravensolar.com/.
3. Take the Long-Term Approach
Do you know what your breakeven point is for a solar panel installation? You know that solar panels will pay off eventually.
Knowing when is going to help you determine how much you can realistically spend on solar panels.
If you choose the finance the project with a renovation loan or finance through the installer, add up the total cost of the loan.
Add up the principal and the interest you’ll pay over the life of the loan. Then figure out how much you’ll save each month.
Multiply the amount you’ll save on energy bills by 12 for your annual energy savings. Then divide the total cost of your loan by the annual energy savings. That’s an estimate of how many years it’ll take to break even.
How Can You Make Solar Panels Affordable?
There’s are a few tricks you can use to make solar panels affordable. Start by getting the right installer. They’ll know how to balance quality and affordability. They’ll also know the latest tax incentives to save even more money.
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