Are Solar Panels Worth It For Your Home In 2020?

What if you could invest in a project that reduces your energy bill for years to come? With solar panels for home, you can do just.  The Earth produces more sunlight than we can realistically use, making it a good option for powering homes and commercial buildings. Additionally, most buildings are already positioned in a way that makes it possible to draw, and covert, that sunlight into power.

How Do Solar Panels Work?

Solar panels work in a unique way to pull energy from natural sunlight and convert it into usable household power and electricity. By installing numerous solar panels on your property’s roof, the solar panels can collect natural sunlight. The sunlight is pushed through the inverter, which then swaps the direct current (DC) power into alternating current (AC) power.

A solar energy system is made up of three parts, including:

• Solar panels: The solar panels themselves are used to pull sunlight into the inverter, converting it into renewable energy.
• Inverters: The inverter is the equipment that converts DC electricity to AC electricity for renewable power. There are string inverters and microinverters, which describe how the inverter is installed. String inverters are easier to install and cost less, but a micro inverter produces more energy.
• Mounting racks: Mounting racks are used to secure your rooftop solar panels. They can be used to position your solar panels in the best position for the most sunpower.
• Other equipment: Other equipment, like solar battery storage units, are sometimes installed. Storage units store solar energy, making them useful during power outages.

Solar panels have an 18% standard efficiency rate and are better for the environment than other sources of energy. When you transition to home solar panels, you will notice a lower electric bill.

Net Metering and Grid Connection

The majority of households’ energy solar systems are connected to a large grid. This type of community solar setup makes solar energy more efficient and cost-affordable for everyone. Net metering is used to pull energy when sunlight isn’t possible, like during the night. Net metering allows you to collect energy credits when your solar panel system produces excess energy and utilize them later.

Benefits of Using Solar Panels

Solar panels can significantly reduce your electricity rates. But in addition to the immediate cost-savings, solar panels also offer many other benefits, including:

• Environmentally friendly: Solar power does not pollute the environment like other electricity sources, including fossil fuels. It is a source of clean energy and helps reduce your carbon footprint.
• Tax incentives: Homeowners who install solar panels during 2020 will also enjoy federal tax incentives.
• Ideal for larger spaces: Solar panels are useful for both residential and commercial buildings. It is also a more efficient way to provide electricity to larger premises.
• Long-term savings: Solar panels not only reduce your monthly electricity usage, but they are also an excellent investment in the long-term. A solar power system is a renovation that will continue to return year after year. Installing solar panels can also increase the value of your home, so even if you don’t plan on living there long-term, you can still benefit from the cost-savings.

Solar panels are also more affordable than ever before. They can also be used for many different purposes, including residential, commercial, RV, or off-grid.

Types of Solar Panels

Solar panels come in different types of materials, including:

• Monocrystalline: Monocrystalline solar panels are the most common type used today. They are efficient, long-lasting, durable, and don’t take up a lot of space.
• Polycrystalline: Polycrystalline solar panels tend to be more affordable. While polycrystalline panels are still efficient, they don’t emit as much power as monocrystalline panels do.
• Amorphous: Amorphous panels tend to be more flexible, making them a good option for properties with unique characteristics or homes in locations with a lot of heat and humidity. They do tend to be larger than the other two types of panels, which make them less efficient.

Determine your property’s electricity needs to decide which type of solar panel is best for your household.

How Many Solar Panels Are Needed to Run a House?

Determining the number of solar panels needed to power your house or commercial building effectively will depend on a few factors:

• The size of your building
• The type of your system
• The type of panels
• Your location

Each household’s solar electricity needs vary, meaning it can be helpful first to consider your individual needs.

Calculating How Many Solar Panels You Need

If you’re questioning, “how many solar panels do I need?” you can use the following calculation to determine the number of solar panels needed:

• Determine your building’s location: First, you will want to assess your building’s location and how far you are from the nearest solar resource data site. You can also use the calculator to determine the typical weather and the average retail electricity rate in your area.
• Determine your DC system size: Solar energy is created by drawing sunlight into the inverter and then converting it to electricity. The size of the inverter and its ability to transform a solar cell into renewable energy will affect the efficiency rating and the number of panels you need.
• Your household’s energy needs: Your household’s energy needs will also determine the number of residential solar panels needed. Larger homes with more residents will typically require more residential panels than a house that is only occupied part of the year using minimal energy.
• Type of solar energy: The type of solar energy used can also affect your rooftop solar panel efficiency.  Off-grid households will need to draw more solar production than homes with solar panels that are a part of net metering. Additionally, not all houses are in a location that is eligible for net metering.

The number of solar panels needed can be calculated by taking the amount of kWh required and multiplying it by the number of hours of sunlight in your location each day. Then, you can take your kWh calculation and multiply it by 365 days. This equals your output.

Then, take the average consumption of homes in your area and divide it by your output. You are then left with the number of solar panels needed.

How Much Does It Cost to Run a House on Solar Panels?

Many homeowners wonder what their electricity bill will be after installing residential solar panels. While each homeowner’s energy efficiency will vary, you can determine your cost-savings by calculating how much you would spend using traditional energy and then comparing it to the cost of the solar panels. 

You will need to account for the cost of the:

• Solar panels
• Optimizer modules
• Inverter/converter
• Any additional equipment like mounting racks
• Installation costs

You have already determined your household’s average wattage usage. From here, you can divide that amount between the required costs and determine your price per watt. You can also use the Solar-Estimate calculator to figure out your specific price based on your home’s characteristics. The majority of homeowners will find that the 2020 average is $3.18 per watt.

Federal tax credits, however, can also reduce the cost of residential solar panels.

Calculating Your Break-Even Point

Just as with any significant investment, many homeowners wonder when they will reach their break-even point. The break-even point is the amount of time it takes to break-even from your initial investment of installing solar panels to the payback period. While many factors dictate when you’ll reach your break-even point, the average American will notice a return on investment in six-eight years. Fortunately, there are many calculations available to calculate your break-even point.

Can I Install Solar Panels Myself?

Some homeowners might wonder if they can enjoy the perks of solar panels for home, without paying for installation fees. While installing solar panels is becoming more manageable, it is also essential to make sure that it is done right. Improper solar panel installation could reduce the efficiency of the solar panels. It is also necessary to ensure that the panels are installed correctly from a solar expert so that they are secure for many years. If the equipment is damaged during installation, it is unlikely to be covered by the company.

If you do decide to DIY solar panel installation, keep in mind that you will likely need a city permit before beginning the solar installation process. If you’re looking to generate enough electricity for your entire house, it might be a good idea to go with a professional solar contractor.

You will find that many solar power companies offer incentives to go with their professional installation services. Some will even have solar financing and $0 down with no out-of-pocket costs, making it even more beneficial to go with a professional for your solar project.

Your solar system’s complete installation will only take a few days when done by a professional solar installer. Of course, many factors can affect this estimated timeline, including your location and whether you are using the grid or net metering.

Tax Credits

Solar panels provide homeowners with many cost-saving benefits, but they also reduce some of the planet’s pollution. For this reason, the United States government enacted the Solar Investment Tax Credit (ITC). This is a 26% tax credit for both residential and commercial properties. Since implementing this tax credit, the solar array industry has increased by over 10,000%! This 26% credit will reduce after 2020 and will continue to decrease each year. You can learn more about the tax plan and benefits here.

Energy costs will keep rising and costing you more of your hard-earned dollars. With tax incentives and good financing terms, there is no better time to consider solar panels. For more information about solar panels and their benefits to residential and commercial owners, consider visiting the Solar Energy Industry Association.