Should you get solar panels on your house? What are the pros? What are the cons? I’m gonna talk about it and explain it all to you guys right now. I have to say it mainly comes down to the cost. Whether or not the solar panels are going to be able to save you some money, versus your electricity bill in the long haul. There are a couple of other things:
First of course, if you love the environment or if you want to contribute to environment protection, this is a great way to generate green energy. Not just for your house but also for the electric cars that hopefully you drive. That way you’re 100% green.
Of course, there are the aesthetic aspects. Are you going to really like or hate the way the solar panels look on your roof? Is it going to devalue the house? Probably not, but still this is something that a lot of people are avoiding.
Are solar panels worth it?
I’m going to break down the cost part of this, which is going to be the main part of your decision. coming up next. Before we dive in just one more thing left to do – I just want to thank my sponsor Avonex, the after-market accessories for Tesla.
There is a discount code that they’ve generated for you guys, so you can save yourselves a few bucks when you shop there next time. Let’s talk about the solar panels and the cost:
Now let’s first just understand what the pieces are here. The solar panels that you install on your roof will generate electricity from the Sun. The Sun comes up pretty much every day where I live. I don’t know if it’s different where you live but it’s pretty much guaranteed free energy that is being converted to electricity.
That electricity can be used right away in your home if you’re running air conditioning and so forth. When the Sun goes away there’s not much electricity being generated, so then you start using your grid power. A lot of times rates are lower at night, so overall your bill gets lowered by 30, 40, or 50 percent, even more than that.
Are solar batteries worth it?
A second sort of scenario is where you don’t just use that energy up right away. You have it stored in your home battery. That’s right your home will have a battery home just like your iPod or your cell phone or your car and that’s where you store the energy.
Even at night when the Sun is not shining the energy that is stored during the day will be used and you don’t have to really get it from the grid and pay electricity bills to your local utility company.
Now, if you’re generating too much, meaning you can’t use it all, in many states here in United States you can actually sell that energy back to your utility company. They are required in a lot of states, here in the United States and in Canada, they require the utility companies to generate so much percentage of their total generated energy from green sources.
You’re essentially helping them and they will pay you for it. Basically you can get the solar panels that I will just power your home at the time when Sun is being generating energy or you can store it in the battery and then use it when you please.
Let’s talk about the cost and this is where it really varies. This is like buying a house or a car. You can’t just say yes or no, and this is how much it’s going to cost, because it’s going to depend how big your house is. How much energy do you need to generate?
How much energy can home solar panels produce?
Are you just there in the evenings? Do you run air conditioning during the day? Do you have electric cars that you have to charge, because that sometimes doubles or triples the amount of electricity you use. Cars use a lot of electricity when they need to be recharged overnight.
You need to figure out how much energy you use every day and that’s going to dictate how much electricity you need to generate with your solar panels. Do you live in the sunny areas like in California or in the areas where it’s cloudy and rainy. In these locations it’s much harder to generate the energy, so you might need more solar panels.
It also depends on where your house is located and what kind of configuration your roof has. Does it have a lot of access to the Sun or is it somewhere in the shade and it’s not really pointing into the Sun? All of this really matters and how much you’re going to spend on this is going to depend on these factors. Contact your local solar installation companies. Try to contacting small ones and big ones.
Video and transcript by kind permission Alex at E for Electric
They’ll give you different pricing but they will also come out and do an estimation of how much energy you need, and how much energy your house can gather. There are some calculators online you can utilize it but even then it’s very generic. It’s not until they actually come out and do a full cost-analysis when you’re really going to know.
Do you want to just buy an installation and pay for it up-front or do you want to finance it? Do you want to lease it? that’s a big decision that you have to make. If you’re financing, you can do it using your home as a collateral. A home equity line has a lower interest rate. Do you want to put on your credit card with a much higher interest?
In a lot of states there is a rebate and a lot of countries have federal rebates. Right now in the United States you can claim 30% of the installation towards your income tax and therefore you can get a rebate that way. With electric cars as well, there are rebates in each state and sometimes even a city.
I’m moving to Sacramento and I know they have their own really good incentives for that. Most importantly, you need to know what are the rates of electricity in your area. You need to know how much money you’re going to save and if it’s going to be worth buying this system …
If you don’t have any electric cars, if you’re not home during the day much and your electric bill is fifty bucks, it might not be worth it to you. An average installation is about $25,000 minus the rebates but again it depends on the size your house, so a lot of time you can finance this and then you find out if you used to pay $200 for your electric bill and now it’s only 50 and you’re paying $100 a month you’re paying off your loan, well you save yourself 50 bucks.
Do solar panels really increase home value?
Obviously, it raises the value of your house because once you pay it off the house is going to cost more, and by then these solar panels are going to a future ‘must-have‘. We also don’t know what’s going to be happening with electricity prices. The electricity prices can go up and therefore you know that the the value of your home with solar panels will of course go up as well.
Who knows, electricity might go down and and then therefore your investment may not be as valuable as you might have thought. You’re kind of gambling it but a lot of this is relatively easy to predict in the next three to five years.
Another piece of the puzzle is home energy storage batteries. Tesla Powerwall say they’re about 5000 dollars apiece and you may need one, two or three, depending on how much energy you want to store. You have to go figure out if you’re gonna spend an extra 10000 dollars on the home batteries, is it worth it?
Those batteries will be feeding your home at night but if you’re not really gonna use the energy at night, you’re obviously going to lose money. Each installation is very specific to your actual needs, and an installation company will help you decide this.