While solar panels are helping people save money on their home’s energy bill, many still balk at the idea because they believe it will cost too much. Solar panel installations can be expensive, ranging from $4,500 to $36,000 in the U.S. A few factors will determine the upfront costs of solar panels, including your desired solar panel system size (in kilowatts), electricity rates, roof size and location. While these numbers may seem daunting, there are several ways to reduce what you’ll pay out of pocket.
5 Ways To Lower the Upfront Cost of Solar Panels
Finance Your Solar Panels
Many homeowners don’t have extra cash on hand for home improvements, but you can still obtain solar panels with a solar Power Purchase Agreement (PPA). A PPA is a leasing agreement with the solar provider in which installment payments correlate with how much energy is used each month. This allows you to enjoy solar without dishing out large upfront payments. Plus, the provider handles repairs and maintenance for free throughout the life of the PPA.Reduce Your Energy Consumption
One determinant of how much you’ll pay is your system’s size. The more energy you use, the larger the system you’ll need. Conduct an energy audit to take a close look at how you’re using energy in your home. Are you turning off lights and appliances when not in use? Using energy-efficient lighting? Do you have appropriate insulation? If you reduce your household’s energy consumption, you’ll save money on solar panels by purchasing a smaller system.
Install During the Off-Season
The sunnier the weather, the higher the demand for solar panels. However, solar providers often offer attractive discounts and rebates to install solar panels during the fall and winter. These incentives can knock a good deal off the cost of your solar panels.
Hire a Solar Provider the Right Way
Working with any contractor, you run the risk of inflated fees and faulty installations, leading to extra costs to correct. To avoid unnecessary solar panel installation expenses, look for contractors with experience working in your community. Get pricing from a few providers to ensure you’re not being overcharged and make sure all costs are spelled out in your contract.
Take Advantage of Tax Credits & Rebates
One big cost-saving measure is the federal solar tax credit. While this won’t defray upfront costs, it will provide a 30% credit for solar panel costs, ranging from labor to equipment. Also, be on the lookout for statewide solar incentives and rebates for extra savings. Using these incentives, along with net metering, can help you repay any financing quicker, reducing your total installation costs.
Reduce Your Solar Upfront Costs with Solar Optimum
Despite the upfront cost of solar panels, you’ll save much more in the long run when you go solar. Get started on the path to saving today with help from Solar Optimum. We’re a trusted solar provider who can identify the appropriate solar solution for your home, help you finance your new system and install it correctly. Contact us today to discuss your solar needs or download our Ultimate Guide to Going Solar.
