Intro to Solar Savings Calculators
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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 long-term 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 include the projected savings of the solar array for 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 isn’t cheap, 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 savings calculators are better for homeowners interested in 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 don’t compare 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 the cost of solar 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 company under consideration. Company-specific solar calculators take into account the products the company uses and the utilities it services.
Solar Panel Savings and Logistics Calculators Don’t Mention
There are several reasons why residential solar saves homeowners money. Solar calculators, however, often don’t mention them.
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 offer them.
How Solar Impacts the Value of a Home
The savings associated with residential solar has become an asset that homebuyers value, which is why they are more likely to pay extra for a home with an owned photovoltaic system on it. How much a solar installation will increase a home’s worth depends on its location and the interests of the buyer.
Lease Solar Arrays and Home Value
Some argue solar makes selling homes harder. However, this is only the case for homes with leased solar arrays.
Because the homeowner doesn’t own the solar panels, they have to buy out the lease or transfer it to the buyer, which would take quite some convincing. No one wants to take on someone else’s debt.
The Solar Financing Options That Saves 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, and that you are not paying for more than the system is worth over time.
This option, however, isn’t feasible for everyone. The second best financing option is a solar loan. Solar loans often allow homeowners to own their solar panels without a down payment.
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.
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 incentives programs. A less frequently used customer incentive is solar company referral programs.
Solar Power Cost Calculator Versus Savings
There are a lot of solar 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, which makes them hard to compare. However, when it comes to deciding if solar is a good fit, the solar savings calculator of a solar installer you’re considering is going to be the most accurate.
What Makes Company Specific Solar Calculators Better
The accuracy of a company-specific solar calculator is possible because this calculator is looking at the products that the company uses. Calculators not created by a specific solar company try to account for more variables, potentially making them less accurate.