How much money does solar panel technology really save?

Jun 28, 2021 at 12:22 PM CDT

Straight Arrow News

solar panels

Solar panel manufacturers market the technology as an environmentally friendly solution that lowers electric bills. Do the advertised benefits outweigh the initial installation costs?

Straight Arrow News

Tags: Climate Change

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Taylor Knight: SOLAR PANELS ARE EVERYWHERE

AND WITH PRESIDENT BIDEN PUSHING GREEN ENERGY WITH HIS CLEAN ELECTRICITY STANDARD, NOW THERE’S EVEN MORE INTEREST.

BUT DOES THAT MEAN ITS FOR YOU?

AND WHY DOES SOLAR POWER SEEM SO POLITICAL?

LETS ME EXPLAIN.

SOLAR PANELS COLLECT ENERGY FROM THE SUN AND TURN IT INTO ELECTRICITY.

ELECTRICITY FROM THERE, MEANS LESS FROM HERE AND LOWER ELECTRIC BILLS FOR YOU.

A LOT OF PLACES ARE ALREADY USING SOLAR LIKE NFL STADIUMS AND THE OLYMPIC HEADQUARTERS.

CELEBRITIES LIKE LEONARDI DI CAPRIO ARE ALSO BIG ON RENEWABLE ENERGY.

HE POWERED THE ENTIRE SET OF THE MOVIE, INCEPTION USING SOLAR.

SO THAT’S ALL REALLY COOL BUT CAN IT SAVE REGULAR HOMEOWNERS LIKE YOU MONEY?

THERE ARE A LOT OF WAYS TO FINANCE SOLAR PANELS FROM LEASING TO LOANS. LET’S LOOK AT A TYPICAL PURCHASE.

THE ACTUAL COST OF THE SOLAR PANELS DEPENDS ON THE SIZE OF YOUR HOUSE AND CAN OFTEN RANGE FROM 10 TO 40 THOUSAND DOLLARS.

THEN YOU HAVE TO ACCOUNT FOR THE INSTALLATION AND WATCH OUT, THERE MIGHT BE SURPRISE EXPENSES LIKE CUTTING DOWN TREES FOR DIRECT SUNLIGHT, REINFORCING YOUR ROOF OR HAVING TO UPGRADE YOUR ELECTRICAL.

SO WHAT ABOUT THE SAVINGS?

START OFF WITH A 26% TAX CREDIT ON YOUR FEDERAL INCOME TAX.

THEN, MANY UTILITIES AND STATES WILL ALSO GIVE YOU A REBATE INCENTIVE AVERAGING 1-THOUSAND DOLLARS.

ADD TO THAT, MOST STATES ALSO OFFER A PROPERTY TAX OR STATE INCOME TAX CREDIT TO REDUCE YOUR COSTS EVEN MORE.

PLUS, IF YOU INSTALL ENOUGH PANELS, YOUR ELECTRIC BILL COULD GO ALL THE WAY DOWN TO ZERO!

SO LET’S TALK NUMBERS.

IN THE BEST CASE SCENARIO LET’S SAY YOUR SOLAR SYSTEM COSTS YOU $20 THOUSAND DOLLARS.

AND YOU LIVE IN SOUTH CAROLINA FOR A COMBINED TAX CREDIT OF 51% OF YOUR PURCHASE,

EXCLUDING ANY REBATES, YOUR TOTAL COST IS $9,800.

THE AVERAGE ELECTRIC BILL IS $1390 A YEAR, SO DIVIDE 98-HUNDRED BY THAT AND YOU WOULD NEED TO LIVE IN YOUR HOUSE A LITTLE MORE THAN 7 YEARS TO BREAK EVEN.

AND OF COURSE YOUR RETURN IS GOING TO BE DIFFERENT IF YOU LIVE IN SEATTLE VERSUS MIAMI.

AND AS FAR AS POLITICS GO, THERE’S A BIT OF FAKE NEWS OUT THERE. HEADLINES DECLARING TRUMP’S WAR ON SOLAR IS MISLEADING AT BEST.

BOTH TRUMP AND BIDEN ENCOURAGED SOLAR GROWTH.

AND ACCORDING TO A PEW POLL LAST YEAR, 65% OF REPUBLICANS AND 90% OF DEMOCRATS FAVOR DEVELOPING MORE ALTERNATIVE FUELS.

SO WHEN IT COMES DOWN TO IT, GETTING SOLAR REALLY ONLY MAKES SENSE IF YOU WANT TO HELP THE ENVIRONMENT LIKE LEONARDO OR PLAN TO STAY IN YOUR HOME FOR A WHILE.

LET US KNOW WHAT YOU THINK IN THE COMMENTS BELOW.

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