Are Solar Panels Worth it in 2023?

Advantages of Solar

Let’s start with the positives. What benefits are associated with going solar? 

Lower Electric Bill

One clear advantage of solar energy long-term cost saving potential for homeowners. By installing solar panels, you can take control of your utility costs and mitigate the impact of rising prices. While electricity prices have increased by 5 percent since 2010, the cost per watt for solar systems has dropped by 70 percent during the same period. Solar panels also last between 25 and 35 years, making them a reliable and durable investment for the future. 

Increase Home Value 

According to a 2019 Zillow report, homes with solar panels sold for 4.1% more on average than comparable homes without solar power. For the median-valued home, that translates to an additional $9,274. If you ever decide to sell your home complete with a solar system in place, solar installation will make your home much more attractive for potential buyers.

Renewable Resource 

Homeowners can leverage solar panels to access eco-friendly and renewable energy, supporting the environment. The growing use of alternative energy sources plays a crucial role in mitigating carbon emissions worldwide, paving the way for cleaner air and a more sustainable future. Opting for solar power is a significant step towards reducing your carbon footprint and promoting a greener planet overall. 

Minimal Maintenance

The durability of a typical solar system is built to last for 25 years, without requiring significant upkeep. In most cases, periodic cleaning of the roof to remove any debris is the only maintenance necessary. Rainfall is usually sufficient to keep the panels clean. However, some homeowners prefer to schedule an annual check by a professional to ensure that the solar panels are receiving maximum sunlight exposure and functioning correctly. 

Potential Tax Credit

By taking advantage of solar rebates and incentives, you can save significantly on the cost of your new installation – often pocketing money each month! The federal ITC is one incentive that saves 30% off your total costs with no cap to its value. In addition to this, states may also grant savings up to 50%, including state tax credits, cash rebates and certificates for renewable energy production. With all of these programs combined, you have a good shot at earning back a large portion of your upfront costs. 

Disadvantages of Solar

In what cases is solar not the best option? Here are a few instances where it may not be worth the investment: 

Installation Cost 

Even with the incentives and tax credits available, solar can be a steep upfront investment. The average cost of a solar system can be upwards of $20,000, so it’s important to be aware that solar companies can charge high prices for installation. 

Electricity Bills are Low

While solar could be a great investment for many homeowners, if your electricity bills are on the low side already you may not see returns immediately. The primary advantage of solar energy is that it saves you money by offsetting electricity expenses, which may not be a significant concern if your costs are already manageable. 

Location 

Your home’s location can make or break its solar power system, as areas with more sunshine year-round generate significantly higher returns on investment. It’s also important to note that roofs facing south, southwest, or west receive more direct radiation from the sun, allowing the panels to work to their full potential. 

Not for All Roof Types 

Not every roof is fit for solar. The size, shape and slope of your roof are important factors to take into account when exploring solar possibilities. Roof structures can certainly be roadblock with solar installation, with the most ideal set up being a south-facing roof with a slope between 15 and 40 degrees. 

Installing solar on a steep roof can be quite the challenge and requires special mounting equipment. To make the most of your solar installation, seek out an open area with minimal obstructions – like trees or chimneys – to ensure optimal performance. 

How to Maximize Solar Savings

In most cases, going solar is a smart investment. We’ve put together a few tips to make sure you’re maximizing you’re reaping all the benefits throughout the process: 

1. Shop Around 

The process of shopping for solar panels can be daunting. It’s imperative to dedicate time to do thorough research and compare quotes from various companies to ensure transparency, quality, and remain within budget parameters. By exploring all options, homeowners can ensure they’re getting the best quality at the best price. 

2. Look Local 

It’s possible bigger solar installers could charge inflated prices for their services, emphasizing the importance of getting quotes from solar installers in order to compare. 

3. Research Equipment Options 

When looking for the optimal solar installation, all options must be weighed carefully. While some equipment may boat high efficiency ratings and tempting price tags, investing in the more expensive options does not automatically mean higher savings. To uncover the best system for your needs, you’ll need to compare quotes with different types of panels and inverters along with various financing offers before choosing your setup. 

How Much Will Solar Installation Cost?

It’s important to conduct comprehensive research on the overall cost of your solar panel system and the factors that contribute to it. With solar power gaining more popularity, the cost is expected to decrease even more. Some of the primary factors that can impact your budget are: 

1. System size 

The amount of energy you use is directly linked to the size and cost of your solar set up. More consumption requires a larger system, which will lead to a need for more panels. The bigger your system, the pricier it will be. 

2. Equipment

 Cheaper panels may feel like an easy way to cut corners when it comes to cost, but it’s important to strike a balance of savings and quality investments. You’ll want to make sure the equipment you invest in will last and work efficiently. 

3. Roof characteristics 

If the space, slope, and direction of your roof are not ideal, it doesn’t mean solar isn’t still in the cards for your home. However, the more complex the installation the more costly it will be. Additionally, if your panels aren’t getting direct sunlight they will be less efficient, reducing savings. 

4. Labor 

Solar companies will differ in their installation price, so it’s important to shop around and find the best fit for you and your project needs. 

5. Location 

Solar prices differ from state to state, and generally warmer states see cheaper prices. Rebates and incentives will also be dependent on location, which will be crucial factors in your total installation cost. 

Is Solar Worth it in 2023? 

1. Rise in Electric Costs 

Electricity costs have seen a spike and will likely continue to rise. According to sources, as of December 1, 2022, Duke Energy Progress raised their rates to $0.129 per kWh (after tax). This is a 9.3% increase in energy costs, compared to their typical 4% average increase in past decades. 

2. Cost Declining

As electricity prices are on the rise, the cost of solar panels has been decreasing. According to EnergySage, solar prices have dropped by 29% in the last decade. With the availability of various affordable loan and financing options, solar power is now attainable for most homeowners and business owners. 

3. Take Advantage of Government Incentives 

Government incentives at the state and federal level are expected to reduce in the coming years. Therefore, it’s wise to take action and take advantage of the current government incentives before they expire. Delaying the decision to go solar could lead to missing out on these programs altogether. 

Overall, for the majority of homeowners solar is a smart investment in 2023. We have slowly started to see inflation fall, and more people are being trained on the ins and outs of installing solar, with large investments at the federal level. Serious supply chain issues faced in previous years are now resolved as well. If you’re interested in installing solar for your home, get started here, or click below. 

FAQ

How much money can I save with solar panels?

The specific amount of money you can save with solar panels depends on various factors including size of the system, energy usage, and electricity rates.

How much do solar panels generally cost?

According to sources, solar panels cost about $20,020 as of 2023 for a 10kW system. This estimation includes the federal solar tax credit, but not additional local rebates and incentives that may be available. 

How long does it take to install solar panels?

The installation time for solar panels can vary depending on the size of the system and complexity of the installation. Typically, residential installations take 1-3 days.