Solar ROI In 2023 Vs Grid Power
Solar is an increasingly popular choice for American homes in 2023, and not merely because of the environmental benefits to using clean energy. Solar ROI In 2023 Vs Grid Power
In this article, we’ll look at what kind of return on investment you can expect with solar panels, how much you can save over their lifetime compared to grid power and we’ll tell you how you can get free solar panels in Illinois in 2023. Solar ROI In 2023 Vs Grid Power
- Solar Return On Investment In Illinois In 2023
According to Forbes Home, the average home in America relying on grid energy spends around $125 per month on their electricity bill.
By installing enough solar panels to cover your energy needs, you can reduce your monthly spend on electricity to $0, as solar panels provide 100% renewable energy for the duration of their service life.
- In Illinois in 2023, the average price of electricity is 17.27 cents per kWh, according to the Energy Information Administration, and the average monthly usage is 1,058 kWh
- The average monthly electricity bill in Illinois in 2023 is $182, based on the above figures
- In 2022, the average home in Illinois with solar panels saved $1,391 over the course of the year, compared to what they would have paid in utilities
- Over the course of their lifetime, your solar system could result in net savings of $25,000 to $40,000
- How Much Do Solar Panels Cost In 2023?
According to the Solar Energy Industries Association (SEIA), the cost of residential solar installations has dropped by around 60% since 2011.
Whereas in 2011, a 6kW system might have cost somewhere in the region of $50,000, today a system of the same size will set you back between $16,677 and $22,562, before incentives.
However, the drop in cost of solar systems has largely been due to improvements in manufacturing processes, and now they’re about as streamlined as they can be.
In addition, due to the high inflation of the last year, the cost of labor and materials are increasing – so prices are once again starting to go up.
How Much Do Solar Panels Cost In Illinois?
The cost of solar panels varies to an extent, from state to state, even without factoring in local incentives.
- In Illinois, the average 6 kW system costs around $16,740, according to Forbes Home
- The average cost per watt of solar panels in Illinois is between $2.70 and $3.30
- The cost per watt is usually dependent on the size of your system – larger systems will cost more overall, but the price per watt will be lower
- How Much Can Incentives Reduce The Cost Of Solar Panels In Illinois?
Solar incentives can significantly reduce the overall cost of your solar investment, and ensure that you enjoy the full benefit of your solar panels. Solar incentives that are available in Illinois include:
- The Federal Solar Investment Tax Credit
- Solar Renewable Energy Certificates
- Solar Net Metering
The Federal Solar Investment Tax Credit
The Federal Solar Investment Tax Credit (ITC) is a tax credit that can be worth 30% of the cost of your solar system, if you meet the eligibility criteria.
Most taxpayers in the US are eligible, but every home is different – and as solar consultants, we’re not qualified to advise our clients on their eligibility for this incentive.
We therefore recommend that if you’re considering buying solar panels, you should always check with your accountant or CPA first to find out if you’re eligible for the Solar ITC.
If you’d like to know more about the Federal Solar Investment Tax Credit, check out our blog article “Solar Tax Credit Extension For 2023: All You Need To Know”.
Solar Renewable Energy Certificates
Solar Renewable Energy Certificates (SRECs) are a scheme operated by Illinois Shines, in participation with the Adjustable Block Program, and this incentive can reduce the overall cost of your solar system by around 25%.
The amount is calculated based upon the size of your solar panel system, and is payable as a lump sum. Some installers apply on your behalf and automatically deduct the amount from what you pay.
If you have to apply yourself, however, you should be aware that it can take up to 18 months to receive the payout. Solar ROI In 2023 Vs Grid Power
Solar Net Metering
Solar Net Metering is a scheme in Illinois that allows you to enjoy the full benefit of your solar panels, without having to purchase a solar battery system.
The way it works is that when you feed excess electricity into the grid during peak sunlight hours, you generate utility credits with your utility company, which can be offset against any power you use later.
Currently, the scheme operates on a 1:1 ratio – so for each kilowatt hour (kWh) that you put into the grid, you get a credit worth an equal amount.
However, once solar penetration reaches 3% of peak demand, the terms of the net metering agreement will be recalculated for new applicants, and will be less favorable.
Therefore, if you want to get the current terms that are available, and see the full benefit of the power your solar panels generate, it would be wise to install your system sooner rather than later. Solar ROI In 2023 Vs Grid Power
- How Long Are The Warranties On Solar Systems?
The length of the warranties on solar panel systems varies from company to company, and usually different parts of the system have different warranties.
- At Green Home Makeover, the SunPower solar panels that we use come with the industry’s most comprehensive 25 year warranty
- Our solar panels also have a life expectancy of 40 years, or longer
- The solar inverters that we use also come with a 25 year warranty, compared to the 5 or 10 year warranties offered by most other companies
- Our solar batteries come with a 10 year warranty
- If you lease solar panels from us and any part of the system breaks during the lease period, it will be repaired or replaced
- Can You Get Free Solar Panels In Illinois?
If you would like to have the financial benefits of solar panels, without the upfront costs, you’ll be glad that in 2023, you can actually get free solar panels in Illinois. The two possibilities for this are:
- Illinois Solar For All
- A solar panel lease
Illinois Solar For All
Illinois Solar For All is a scheme that offers free solar panels, or shares in a community solar project, to income-eligible applicants that live in the state of Illinois.
Green Home Makeover is an approved vendor of Illinois Solar For All, and we’re proud to have given access to solar to many homes, through this scheme.
If you think you may be eligible for Illinois Solar For All, get in touch and we’ll discuss your options.
Solar Panel Lease
If you’d like free solar panels in Illinois, but you’re not eligible for Illinois Solar For All, a solar panel lease might be the right option for you.
For a fixed monthly fee that is not subject to inflation, you can lease a solar panel system and save 35 – 40% compared to what you otherwise would have paid in utilities.
At Green Home Makeover, we offer solar leases to customers with a credit score of 650 or better, and the lease duration is 20 years. Solar ROI In 2023 Vs Grid Power
Want To Save With Solar?
Whether you purchase, lease or get free solar panels via Illinois Solar For All, solar is an easy way to save thousands of dollars, by generating your own electricity from renewables.
Getting solar panels, however, isn’t as straightforward and many might think at first – there are lots of hurdles to jump over, and lots of red tape. That’s why Green Home Makeover is here to help.
We’re a solar consultancy with over 8 years of industry experience, helping homes across Illinois install solar panels without the stress associated with managing a solar project yourself.
We’ll assess your home and your energy requirements, design your system and manage your solar project, from A to Z. All you need 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 switch to solar, get in touch today for a free, no-obligation consultation and quote. Solar ROI In 2023 Vs Grid Power