Solar panels are a great renewable energy source, and there are tons of benefits. Besides saving the environment, you can save money on electricity. Of course, there are things you must consider before you make the big transition. It’s a matter of space, time, and, most importantly, money.
The cost is the first thing you worry about when you’re looking to put up solar panels. Well, experts at CMC Roofing have got you covered. As for the solar panels’ cost, we’ve got a breakdown of it right here. Read on to learn more.
.Average cost of solar panels
Investment in renewable energy technology across the state has been growing! Because of this, homeowners can get solar in Texas at a lower-than-average cost, making going solar in Texas worthwhile! The average cost of solar panels in Texas is almost $2.77 per watt, slightly lower than the $3 per watt national average.
The average solar system in Texas costs $30,935 before the federal solar tax credit. Texans spend an average of $21,654 on solar panels after taking advantage of the 30% tax credit.
The following factors determine the total cost of solar panels. The price can vary depending on your specific requirements and what options you choose.
- System size.
- Energy requirements.
- Type of solar panels installed.
Reasons to go solar
With Texas electricity rates rising and solar panel prices falling, it’s the best time to go solar. Installing solar panels will not only save you money on utility bills but will also help to reduce the world’s heavy load on the electric grid. It will also help you practice energy independence. This means you won’t have to rely on energy providers for your electricity needs. You might also be wondering if the climate of Texas is right for them. It definitely is. In fact, it’s probably one of the most optimal areas to install solar panels.
Solar financing options
There are three common solar financing options:
- Cash purchases.
- Solar loans.
- Solar leases, also known as power purchase agreements (PPAs).
If you opt for a cash purchase, your initial cost will be around $21,645 after federal credit. An estimated payback timeline for this is around 13 years, and your estimated 25-year savings would be $21,350.
Buying your solar panels this way is great for saving money on energy and getting the most out of your solar panel system. A cash purchase not only has the shortest payback period, but you can save more money over time because you won’t have to pay interest like with a solar loan.
You own your solar system outright with a cash purchase. That is, every kilowatt of electricity you generate is either consumed at home or credited to future energy bills through net metering. Plus, you can pay little by little over time. It might not be the option most homeowners will go for because of the high upfront cost. But rest assured, the other benefits are worth it!
Many Texans choose a solar loan to pay for their photovoltaic (PV) systems because it often requires little money down. After that, you can finance the rest of your system with a monthly payment. However, some folks prefer to spend more money on solar panels for a lower monthly cost. This isn’t necessary, though.
Solar loans can provide some of the same benefits as a cash purchase. For example, once you have paid off your solar system, you’ll own it outright and be eligible for the federal investment tax credit.
That being said, this is a more costly option. This is because of interest that builds up over time. As a result, you’ll end up paying more for your solar panels in the long run. Moreover, the payback period is longer when you compare it to a cash purchase.
This route is different from the previous ones. If you choose to lease your solar system, you won’t own it. A solar lease essentially allows you to rent your solar system from an installer, just as the name suggests. You can use the solar energy produced by the panels during that time.
If you would prefer leasing over buying, this one’s for you. The monthly cost of solar energy is often less than that of electricity, which is a plus. But you’ll pay more over time since you’re leasing your system.
In this case, neither the value of your home nor the federal investment tax credit will increase. Instead, the company that installed your panels will be the owner of the panels and will be eligible for federal incentives.
It’s not the most popular option for Texan homeowners, according to data. However, it can be good if you try solar panels temporarily.
When installing solar panels on your home, you must check these boxes to ensure you’ve covered everything. It’s best not to leave any stone unturned!
- A permit from local city.
- Warranties (costs vary according to brand).
- Interconnection with electricity provider. This can cost you around $150 on average.
Investing in an eco-friendly power system is always a good move. It can get overwhelming thinking about the cost of solar panels. But with our cost breakdown, there’s no need to worry. The options are quite expansive! You can choose to lease out a system if your budget dictates it. If you want to transition into a solar-powered home, you can still be smart about your money. Not to mention, it saves a lot of it in the long run!
We at CMC Roofing Services have you covered in this department. If you have any questions, you can call us at (214) 501-5679. We also offer a free roof inspection for any solar panel-related inquiries. So rest assured, our experts have you in good hands.