Solar Power Cost Savings Calculator
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Everyone wants to save money. Saving money is the reason Black Friday is one of the busiest shopping days in America.
However, for big-ticket items, calculating the best deal is a little more complicated than finding the lowest price. It requires looking at the savings that the solar array is going to produce for the homeowner.
There are several solar calculators on the market, but not all of them tell the projected savings that the solar array is going to give the customer. Savings tells the customer far more than the cost, which is why Go Solar Group’s savings calculator algorithms stand out among the plethora of solar calculators available on the internet.
A Look at Solar Savings Estimators
Successful people think about the long-term benefits of their investments. The source of electricity should not be an exception. Although solar is an expensive commodity, the return on investment of solar makes the price worth it.
Solar savings estimators look at the long term benefit that the customer will gain from their purchase instead of the cost of solar without context. There are several reasons why this type of calculator is a better estimator for solar.
One of these is that cheap solar panels don’t always mean they will withstand the test of time. Another is that solar cost calculators aren’t comparing solar to the alternative cost of utility generated electricity.
What is the Average Cost Savings on my Electric Bill
The biggest thing to consider for a solar installation is how much it is going to cost compared to the local electric bill the customer already pays each month. If the solar array is going to cost less than utility-generated power, it is worth the investment.
Factors That Go Into an Energy Savings Calculator
A quality solar savings estimator takes into account the products purchased as well as the local utility company rates over time. The estimated savings from one solar savings calculator isn’t going to account for every variable across every solar installer.
When looking at solar savings calculators, make sure it is for the companies the customer is considering. Company-specific solar calculators use the products the company uses and the utilities it services as determining factors.
Do Solar Panels Really Save Money?
The short answer to this question is yes. There are several reasons why residential solar saves homeowners money.
These reasons vary from increased home value to decreased electric rates. Other factors, such as the type of solar array, financing and solar incentives can also impact solar savings.
Together all these different factors make solar not only a viable energy option but a cheaper one as well. People that invest in solar have looked at these factors and seen the benefits that these savings can give them.
How Solar Impacts the Value of a Home
Because more people see the savings associated with solar, they are more likely to pay extra for a home with a photovoltaic system on it. However, the worth of the home depends on its location and the interests of the buyer.
Some argue solar doesn’t increase home value but instead makes selling the home harder. However, this is only that case for leased solar arrays.
Leased solar arrays make selling a home difficult because the homeowner doesn’t own the solar panels, which makes it so they can’t sell the solar panels with the home. Instead, they have to buy out their lease or convenience the buyer to take on the lease.
Which Financing Option Helps Homeowners Save the Most
The best financing option is cash. Solar companies often give discounts for systems paid in cash. Paying in cash also means the homeowner doesn’t need to pay interest.
This option, however, isn’t feasible for everyone. The second best financing option is a solar loan. Solar loans have low rates and short terms, allowing homeowners to own their solar panels without needing upfront cash.
Why Utilities Cost More Than Residential Solar
Solar used to be far more expensive than utility generated power. However, because of price decreases, net metering and federal incentives, solar is now cheaper in most locations.
What Incentives are Available
The most impactful incentive is the federal solar investment tax credit (ITC). This tax credit reduces federal taxes owed and decreases the cost of solar by thousands of dollars. Most solar companies won’t even recommend solar if the customer can’t qualify for it.
Other incentives are dependent on the state. Such as state tax credits and utility solar incentive programs. A less used customer incentive is solar company referral programs.
Solar Power Cost Calculator vs. Savings
There are a lot of cost calculators on the internet these days. However, which one to use gets a little tricky.
Some calculators determine the savings of a solar array; others calculate the cost of solar. There are also several different types of solar calculators to choose from, such as solar panel calculators and solar system calculators.
Each of these calculators uses different metrics and is, therefore, hard to compare. However, when it comes to deciding if solar is a good fit, a solar savings calculator produced by the solar installer is going to be the most accurate.
This accuracy is possible because this calculator is looking at the products that this specific company uses. Calculators that aren’t specific to a solar company have more variables to account for, making them less accurate.