One of the biggest reasons people consider switching to solar is energy savings. Aside from the fact that solar is one of the best green energy sources for the environment, it will also save you substantially on your energy bills. The amount that you save is dependent on how much energy your solar system produces. But this isn’t the only way you can save with solar. Government incentives will allow you to save substantially on your taxes too. We will go over some of the ways you can save with solar and try to give you an idea of how much you can save.
How much will solar panels save on electricity bills?
The more energy your system generates, the more money you’ll save with solar panels. A domestic solar system typically generates 350-850 kilowatt-hours (kWh) per month. According to the US Energy Information Administration, the average home uses 909 kWh of energy every month, therefore owning solar can save you up to 90% on your monthly electric expenses! Certain states will even allow you to sell energy back to the power company. This is called net metering, and Massachusetts is one of the states that allow this. If you have a large enough solar system on your property to produce more energy than you use you can actually turn a profit off of it!
How much can you save with tax incentives?
You can get tax breaks from the government if you own your own solar system. The government allows owners to deduct 26 percent of the cost of installing a rooftop solar-electric system from their federal income taxes starting in 2021, including the cost of any necessary renovation or retrofitting work associated with the solar installation. As a result, if you spend $10,000 on your system, you will obtain a tax credit of $2,600. As an added bonus, many states allow homeowners who install solar panels to deduct the cost of the system from their state income taxes.
What does all of this mean for solar owners?
If you don’t own a solar panel system your power is currently owned by the power company. And they have the power to decide whether or not the price goes up, as well as how much you get. A solar system on your home can help you break free from some or all of those ties (some customers prefer to get systems that reduce their electricity need but not outright eliminate the need for the public power grid).
How you install your solar system and who you choose to do so might have a significant impact on your future savings. Get in touch with Future Energy Solar so that we can guide you on the correct path to maximize your financial investment. Our experts have the knowledge to make sure that you will see the fastest return on your investment possible. Act fast before the Federal Tax Credits and Incentives reduce in value and soon maybe even go away completely.