Societal focus on sustainable practices along with the rising cost of living has led to a growing interest in alternative resources. Many homeowners have considered utilizing solar power to save on electric bills, increase property value, lessen environmental impact or a combination thereof. But is going solar really the answer, or even an asset? Here are things to consider before flipping the switch.
Putting solar panels on your home can be a huge cost savings. You can choose to lease them, which requires no upfront investment, or buy them. Depending on whether you plan to supply part or all of your power needs, most homes require between 15-25 panels and will be in the ballpark of $15,000-$35,000 (before incentives, such as the 30% federal tax credit). Oftentimes with a purchase, it includes a low interest rate and the loan is transferable to the next homeowner.
A custom calculation will consider your average consumption, panel wattage, roof characteristics and sunlight hours. A good Q&A can be found on the U.S. Department of Energy website at energy.gov/eere/solar/homeowners-guide-solar.
Solar panels last an average of 25-30 years, which is about the same as the average roof, so timing is important: Your roof should be less than 10-15 years old and in good condition to avoid costly panel removal and reinstallation later. Many companies offer combined roof replacement and solar installation to save time and money. Note that factors like panel type, climate and installation quality will affect the life span of the panels.
For example, a recent home purchase with heat pumps revealed an average monthly electric bill of $1,200. The homeowner is now installing leased solar, which is estimated to reduce the electric cost to approximately $205 per month for 25 years at a 0% APR, with a lower rate of 16 cents per kilowatt hour (kWh) and no upfront or out-of-pocket costs. The solar lease can be transferred to a future homeowner, pending a credit check. The solar company also offered to replace the home’s nine-year-old roof at no cost; however, that option would have increased the monthly payment to approximately $450–$500. This example highlights why negotiation is key to securing the best long-term energy solution for your family.
Owning or leasing solar panels is typically a strong investment. Most homeowners who purchase solar recoup their costs within about 10 years and can save tens of thousands of dollars over the system’s lifetime, depending on energy usage, system size and electricity rates. Solar also offers added energy independence and the option for battery backup — an especially reassuring benefit during harsh New England winters.
Kim Foemmel
Foem
mel Fine Homes
1 Lumber Street, Suite 207C
Hopkinton, MA
(508) 808-1149
Kim.Foemmel@gmail.com
FoemmelFineHomes.com
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