Solar Panels: Saving The Planet While Saving Yourself Thousands
By 2023, everyone knows that green technology, such as solar panels, are the way forward if we’re going to save the planet from catastrophe at the hands of global warming. Solar Panels: Saving The Planet While Saving Yourself Thousands
What many people don’t know, unless of course they’re well acquainted with the topic, is that solar panels can also save you huge sums of money – adding up to tens of thousands of dollars over their long service life.
- What Are The Benefits Of Solar Panels?
A comprehensive list of every one of the benefits of solar panels would be difficult to cover in just one post, but below we’ve listed just a few of the key ways that solar panels can benefit both you personally, and the general population.
- Solar panels provide 100% renewable energy from sunlight, so following the payback period you’re essentially powering your home or business for free
- A study by Boston University has shown that solar panels lower the cost of electricity, even for homes that don’t have them, due to the low-cost excess electricity that is fed into the grid during peak hours, as opposed to relying more on expensive power plants
- A large scale study by the Lawrence Berkeley National Laboratory of homes with solar systems found that installing solar panels significantly increases home value
- Another study on residential solar systems, which was conducted by the National Renewable Energy Laboratory (NREL) found that homes with solar panels sell 20% faster than comparable properties without
- Solar panels have zero carbon emissions following installation, and at the end of their service life they’re recyclable, so they’re the perfect green technology
- Solar panels have long lifespans, giving you a long period of returns on your investment – the high quality SunPower panels that we use at Green Home Makeover have a life expectancy of 40 years or more
- Currently, there are a number of solar incentives available, which can significantly reduce the overall cost of your solar system and ensure that you enjoy maximum savings
- In addition to incentives lowering the cost of residential solar systems, the cost of solar panels is also at a historic low point, thanks to manufacturing advances
Solar Panels: Saving The Planet While Saving Yourself Thousands
- Exactly How Much Money Can You Save With Solar Panels?
This question is difficult to give a precise answer to without an individual assessment, as the exact amount you save from solar panels depends on many factors, such as your local electricity rates, how much power you use and whether you have sufficient roof space for a system that will fully cover your needs. However:
- As of November 2022, the average price of electricity in Illinois is 17.27 cents per kilowatt hour (kWh), according to the Energy Information Administration
- The average household energy consumption in Illinois is 1,058 kWh per month, so based on these figures, the average monthly utility bill in Illinois is somewhere in the region of $180 in 2023
- According to Forbes, the average home in Illinois with solar panels saved $1,391 in 2022, though theoretically, if your system is large enough, you could save much more than this, and cover your entire consumption
- Over the course of their service life, solar panels could save you over $40,000 in total, after deducting the initial investment
- How Much Can Solar Panels Increase Home Value?
There have been two large scale studies on home value and solar panels – one 10 year study by the Lawrence Berkeley National Laboratory, which was published in 2015, and another study by NREL, which was published in 2010.
- The study by the Lawrence Berkeley National Laboratory found that homes with solar panels saw a significant increase in value, with an average increase of $15,000
- The exact increase in value was dependent on factors such as system size, with an average increase in value of between $4,020 and $5,911 per kilowatt of solar panels
- At the lower end of $4,020 per kilowatt, a 6 kW system would increase the value of a home by $24,120, which is more than the cost of the average 6 kW system
- The 2010 study by NREL found that homes with solar panels sold for 17% more on average – and roughly by $20 for every $1 annual reduction in utility bills
- What Solar Incentives Are Available In Illinois In 2023?
Solar incentives can significantly reduce the overall cost of your solar investment, and ensure that you save more money in the long run. Currently in Illinois, the following incentives are available:
- The Federal Solar Investment Tax Credit
- Solar Net Metering
The Federal Solar Investment Tax Credit
The Federal Solar Investment Tax Credit (ITC) can reduce the overall cost of a solar system by 30%, for eligible taxpayers living anywhere in the United States.
Most homes are eligible, but everyone is different, and as solar consultants, we’re not qualified to advise our clients on their individual eligibility.
We therefore recommend that if you’re thinking of purchasing solar panels, you should always check your eligibility for this incentive with your accountant or CPA first. Solar Panels: Saving The Planet While Saving Yourself Thousands
Solar Renewable Energy Certificates (SRECs) are a solar incentive operated by Illinois Shines, under the provisions of the Adjustable Block Program.
The value of the SRECs that you receive are calculated based upon the size of your system, and they’re payable as a lump sum that can be worth up to 25% of the cost of your solar system.
Some installers will apply on your behalf and automatically deduct the incentive from what you pay, but you should be aware that if you do have to apply yourself, it can take up to 18 months to receive the payout.
Solar Net Metering
Solar Net Metering is a scheme in Illinois that allows you to enjoy the full benefit and financial savings of your solar panels, without having to invest in a solar battery system.
The way it works is that for every kilowatt hour of excess electricity that you feed into the grid during peak daylight hours, you generate a utility credit of equal value, which can be offset against the power you use later.
Currently, new applicants to the scheme get an agreement that operates on a 1:1 basis, so they get back what they put in.
However, once solar penetration reaches a certain percentage of peak demand, the agreement for new applicants will be changed, with less favorable terms.
Therefore, if you want to enjoy maximum savings from your solar panels, it would be wise to install your solar system sooner, rather than later, so you don’t need to invest in a solar battery. Solar Panels: Saving The Planet While Saving Yourself Thousands
Do You Want To Save With Solar?
If you’ve made it this far, it’s likely that you’re one of the many Illinois residents that are waking up to the myriad benefits of solar panels, and you’re thinking of taking the leap.
These days, however, installing solar panels isn’t as easy or as straightforward as many people might think. There are lots of informed decisions to make, lots of hurdles to jump over and there’s a lot of red tape. That’s why Green Home Makeover is here to help.
We’re a team of solar consultants, offering more than 8 years of industry experience, managing solar projects across Illinois, to help people go solar without any headaches.
We’ll assess your home and your energy requirements, design your system, and manage every aspect of your project, from A to Z. All you have to worry about is being home on the day of the installation.
If you’d like to know more about how we can help you make your solar dream a reality, get in touch for a free, no-obligation consultation and quote. Solar Panels: Saving The Planet While Saving Yourself Thousands