With government incentives, a constant barrage of advertisements, and rising electricity costs, installing solar panels on homes has become more intriguing to many homeowners over the past few years. Are the panels worth the investment? Like most other big financial decisions, the answer to the question is dependent on every homeowner’s individual circumstances. Here are some things to consider.
How long are you going to live in your home?
Purchasing solar panels is a large upfront cost. Many people take out loans with the solar companies to cover the costs of the solar panels and installation. This loan is tied to you, not your home. It can take up to ten years before you’ve recouped your initial investment. If you plan to stay in your home for the long term, then you will eventually enjoy the benefits of a small to zero electric bill along with no loan payments. If you know that your home is a short term living situation, then think carefully about installing solar. It adds another layer of complexity to getting your home sold. An awesome Realtor® (like me) can walk you through the different scenarios of how to get your home sold. Having a loan makes things a little more tricky but not impossible. Just be aware that most buyers are not willing to take on the cost for the solar panels that they did not choose to install.
How much electricity do you use and how much can you make?
It’s important to consider how much electricity you use and how much you will make. For example, if you live in a home in Lake of the Woods that is constantly shaded by trees, then your production may not be as high. If your consumption of electricity is lower, then the amount you make may not provide as much savings to you. However, if your home is in a sunny spot, your production may outweigh use. Consulting with several solar companies can help you figure this out. They can estimate how much energy your home will make based on its location and compare this to your electric bill.
What is the condition of your roof?
Before solar panels are installed, the roof of your home needs to be inspected. The solar company will make sure that your roof can support the weight of the panels and inspect the general condition of your roof. All roofs have a lifespan. If your roof is more than ten years old, you may need to consider replacing it before installing the solar panels. You don’t want to have to remove the solar panels in a few years to have the roof replaced and then the panels reinstalled.
Can you participate in net-metering?
Net metering is a benefit for some homeowners considering solar panels. Your home is connected to the electrical grid of your electric company. Any excess power your home produces is sent out to the grid and you receive a credit on your bill for that power your home produced. Locally, Dominion Energy participates in net-metering. Rappahannock Electrical Cooperative does not.
Can you take advantage of tax credits, rebates, or other incentives?
You will have to do a little research based on exactly where you live. Programs and incentives can vary not only by state but also by locality. Here is an article that explains some programs available in Virginia. Make sure to do your research to fully understand what incentives and for how long you can receive them.
There are definitely a lot of factor to consider when determining whether solar panels are the right option for your home. Remember to get estimates from several different solar companies before you decide to install.
