Is Solar Energy Right for You? 5 Key Factors to Consider
Renewable Central
Is Solar Energy Right for You? 5 Key Factors to Consider
Standing at the crossroads of energy choices can be daunting, but expert insights can illuminate the path forward. Founder & CEO and Owner & Head Electrician share their seasoned perspectives to help you make an informed decision about solar energy. The first advice focuses on redirecting your energy spending, while the final insight emphasizes the importance of timing and incentives, among a total of five expert recommendations. This article brings you a comprehensive understanding straight from the professionals in the field.
- Redirect Your Energy Spending
- Think Long-Term Investment
- Lock in Cost Stability
- Evaluate Sun Exposure and Costs
- Consider Timing and Incentives
Redirect Your Energy Spending
If you're paying an electric bill every month, you're already investing in energy—just not for yourself. Solar flips that script. Instead of renting power from your utility company, you're redirecting what you already spend into something you own that doesn't increase over time. The reality is, you have to pay for power regardless. So, the question becomes: do you want to pay for power on your terms or the utility company's terms? One is more affordable, fixed, and has an end date, while the other is everlasting and ever-climbing.
Look at your current energy costs, your roof's potential, and what incentives are available in your area. It's not about whether you can afford it—it's about whether you can afford to keep doing what you're doing. Because you're committed to spending that money either way. Is it going to go to you or the utility?
Think Long-Term Investment
One key piece of advice is to think long-term. Solar energy is an investment that pays off over time, especially if you plan to stay in your home for several years. Consider your roof's sun exposure, your current energy bills, and any available local incentives or rebates.
If your roof gets plenty of sunlight and your electricity costs are high, solar can offer significant savings. Think about how much control you want over your energy, as solar provides greater independence and protects against rising utility rates. This choice isn't just about saving money; it's an investment in future energy security.
Lock in Cost Stability
Owning your own "power plant" through a solar installation offers long-term cost stability, allowing you to avoid the rising rates associated with renting energy from a utility company. While utility rates always seem to increase year over year, solar lets you lock in lower, predictable energy costs and build equity in your home. If you also like to see your investments grow, a solar installation can offer a return similar to or better than the stock market. Especially if you plan on buying an EV, the payback of solar on even a somewhat-shaded roof could be worth looking into.
Evaluate Sun Exposure and Costs
Some Things to Consider When Going Solar
Our advice we would give to someone on the fence about going solar is to become solar-smart and do your research.
First, evaluate the following:
- The amount of sun your roof receives. Solar panels require almost direct sun to be able to produce energy. If there is a large amount of shade covering your roof, solar might not be a viable option.
- The direction of your roof. In the northern hemisphere, your roof should face south for the highest production. Depending on your home setup and location, other directions may work as well, but south-facing panels produce energy best.
- The cost of electricity in your region. The higher the price of electricity from your utility company, the more money you will save by installing rooftop solar panels.
If your home checks these boxes, solar power will likely be a wise investment.
Although you might have the ideal home design for solar panels, a low electricity bill might turn you away from installing a renewable energy source. If you live in a state or city charging expensive rates for power, if you do not use a large amount of power, solar might not be worth it. A good rule of thumb to follow is having an energy bill higher than $75 dollars per month for solar to be worthwhile. The more you pay for electricity, the faster the solar panel system can be paid off.
Understanding the value of solar becomes easier when you can see how much it will help you save. Luckily, professional solar installation companies, like Blue Raven Solar, calculate how much you can save by installing a custom rooftop solar system prior to installation. Several factors can affect the amount of savings you experience, including taking advantage of available incentives, rebates, credits, and your chosen financing method. Opting for a lease or power purchase agreement (PPA) may result in monthly savings, while purchasing a system outright typically allows you to eliminate most of your power bill. If you finance your solar panels with a loan, the loan payment is often designed to be lower than your previous monthly energy costs, ensuring consistent monthly savings.
If you pay cash or finance your system, you are also entitled to the Federal Solar Investment Tax Credit (ITC). The ITC allows you to take 30% of the total cost of your system and apply it as a tax credit in the following year.
Consider Timing and Incentives
Piece of Advice
There's no time like the present. Right now, solar prices are near all-time lows, the 30% solar tax credit is available, and electricity prices are high. The longer you wait, the more likely you are to miss out on lucrative incentives—and the less you'll save overall.
Factors to Consider
Before going solar, first, ask yourself the following questions:
How high are your electricity rates?
The more you pay for electricity, the more you'll save with solar. It's as simple as that. If your electricity rates are low, solar might not be worth it from a financial standpoint. But if supporting a cleaner environment is your main motivation, solar can still make sense. You can try EnergySage's Solar Calculator to get a quick estimate of your potential savings.
Do you have access to lucrative state or local incentives?
As of 2024, anyone with a big enough tax bill can take advantage of solar's best incentive, the investment tax credit. But local and state incentives, like net metering, SRECs, and state tax credits and rebates, really sweeten the deal. If incentives bring down your cost of solar considerably, or increase your long-term savings, solar can still save you money even if your electricity rates are relatively low.
Do you own your property?
It can be tough to convince your landlord—or even joint property owners—to go solar. Sometimes it works, so it's worth trying, but in general, those who own single-family homes will have the easiest time going solar. You can always check out community solar if you rent or don't have rights to your roof, though.
Is your roof a good fit?
South-facing roofs with slopes between 30 and 45 degrees are ideal for solar. But even with an east- or west-facing roof, solar often still makes sense. Just make sure your roof isn't too shady and that it's in good condition. In general, if an asphalt roof is older than 10 years, you might need to consider replacing it before going solar. Solar panels typically last 25+ years; you should expect the roof underneath them to last at least that long. If your roof isn't a good fit but you have a sunny property with plenty of space, check out ground-mounted solar setups.
