You’ve probably heard about the differences between Solar Power costs vs Regular Electricity and wondered how much it will cost to install solar panels. You’ve probably also heard about the fluctuation of electricity prices and the rising cost of batteries. When you switch to solar energy, you’ll save money. Let’s compare the two! Continue reading to find out about the advantages and drawbacks of using solar energy.
Solar panels cost
Installing a solar power system will not only reduce your electric bill but also allow you to qualify for a federal tax credit of 30%. You can receive rebates up to thousands of dollars if you provide the correct paperwork. For homeowners looking to cut down on electric costs, a 30% tax discount is especially beneficial. But how does the tax break work? Let’s look at some benefits and disadvantages of installing solar energy on your property.
The first and most significant benefit of solar electricity is that it has zero carbon emissions. Compared to conventional electricity, solar energy will save you a significant amount of money on your monthly utility bills. And the best part is that you can save up to 95% of your electricity bill by installing solar panels! Solar energy has many benefits. Property owners can also save money by installing solar panels. For example, you can take advantage of tax credits of up to 30% of the total cost of installing a solar energy system. You can recover the cost of installation within 10 years or less.
Cost of batteries
A lithium-ion solar battery costs about $4000 at the beginning. However, the payback time is longer. You can usually stack multiple smaller batteries together to make a bigger one. This makes it easier to produce energy on a budget. It can make modularly most battery packs so that you only need the amount of energy you consume each day. An average household uses 28 kWh per day. Therefore, you will need more batteries to produce more energy.
The cost of a battery for solar power systems is around $10,000. However, the benefits of using a battery for backup energy are very different for different households. Batteries are great for optimizing your energy bill savings. You might not need a battery if the feed-in tariff in Australia is very low. You can then choose between various battery storage options.
Volatile nature of electricity prices
Rising energy costs are driving increasing price volatility for electricity. Increasing amounts of renewable energy have made some markets more volatile than others, but it doesn’t mean that these volatile prices are unavoidable. They may even increase volatility as renewable energy forces conventional generators out. This could create an environment of feast or famine for energy users. In addition, as reliance on fossil fuels declines, electricity systems will become more exposed to natural gas costs. Energy prices fluctuate based on the supply and demand of power and gas.
For example, extreme weather can increase energy demand, which disrupts supply and drives up prices. Growing economies require more infrastructure, which leads to a higher demand for energy. Meanwhile, poor-performing economies have cut demand and reduced costs. The result is an increasingly volatile market for electricity and gas. Despite these risks, solar energy will continue to provide a viable alternative to utility companies and the unpredictable nature of electricity prices.
Solar energy can save you money
The Energy Department recently released statistics highlighting the cost savings of switching to solar energy. These studies show that solar energy will save consumers 24 percent on fuel costs over 25 years in Hawaii, California, Colorado, and New Jersey. During the same period, 30-year investment in US Treasury bonds would only yield a return of four percent. Solar energy can save money and increase the value of your home.
If you don’t want to invest in solar equipment upfront, there are several options for leasing. There are many solar leasing companies like Sunrun or Vivint that offer plans that enable you to go green without having to pay upfront fees. You will receive two bills per month as a customer of a solar leasing company – one to the solar system, and one for your utility provider. Pay your utility provider for the power you generate and for the excess power you send back to the grid. Going solar can save money if your monthly utility bill is high.