Did you know that households in the United States paid a whopping $118.16 average for their April 2018 electric bill?
That’s right! All because the average cost of electricity in the country for that month ran for 12.89 Cents per Kilowatt-hour.
As someone who lives in Missouri, you may have paid a little less (statewide average was at $94.97). But this doesn’t mean that you can already relax. Especially since electricity rates have continued to show an upward trend over the last few years.
This then brings us to today’s big question, “Are solar panels a good investment?” Followed by “How can using solar energy benefit me?”
Don’t worry. All these (plus how it works and how much you can save in the long run) we’ll answer in this post, so keep reading! Just keep in mind all of the numbers quoted below our average numbers based on past performance in the market.
What Solar Energy Is in the First Place
Let’s talk about solar energy first. That way, you can have a better grasp on why solar panels are a worthy investment.
That massive ball of fire we call the sun produces what we call photons. These are energy particles that reach the Earth within 8 1/2 minutes. That’s after traveling a whopping 93 million miles.
Within a span of an hour, the sun sends so many of these particles our way that they’re enough to meet an entire year’s global energy needs.
To use this energy though, we need something to convert it into usable energy (AKA thermal or electrical power). That’s where solar panels come into play.
A solar panel consists of many solar cells. When photons come into contact with these cells, their electrons detach from the atoms. From here, the electrons pass through an electrical circuit, which then generate electricity.
The more solar panels wired together (called a solar array), the more solar energy it can convert. So, the more panels you have, the greater the amount of solar energy you can reap and use.
Reduced Reliance on Electrical Energy Means Great Savings
Think about how less electrical energy you’d have to use if you have a solar set up. Consider that the sun supplies us daily with its photons.
It’s almost like an unlimited supply of photons waiting for you to convert them into energy. Energy you can use for all your household appliances and gadgets!
With your solar panels, you can generate electricity on your own. This means you don’t have to buy it from an electricity company.
Here’s something to put things in better perspective:
The average household in the U.S. consumes about 11,000 kW/h. Last April, Missouri’s average electricity rate was 10.36 Cents. This means that if you were to use solar energy even for only 5,500 kW/h, you can already save about $570 a year!
Make the complete switch to solar, and you can save up to $1,140 a year. Within five years, that’s almost $5,700 in savings.
How’s that for renewable and money-saving energy?
More Reasons to Go Solar
If you’ve always wanted to take part in the green revolution, then going solar is one of the best ways to do that. Through solar energy, you minimize your need for electricity derived from CO2-generating fossil fuels (AKA gas and coal). This can then support all other efforts in reducing the risk and effects of global warming.
There’s also the fact that top-of-the-line solar power systems deliver reliable energy source. So long as the sun keeps shining, your panels will generate electricity. Although MO weather can be unpredictable sometimes, you can predict how much electricity your system can generate.
Furthermore, setting up your home with solar energy can boost its resale value! With so many home buyers wanting green features in their home, they may bid as much as $50,000 more on your home.
Do Solar Panel Benefits Justify the Installation Costs?
With all these benefits of solar energy, you may be wondering why not everyone uses them. For the most part, it’s because many worry about the installation costs.
Indeed, you can expect a hefty bill for your solar panel installation. But factor in all the benefits it’ll bring you, and you’ll see right away that these outweigh your initial expense.
How long is this “long run” though? After using it for about 10 years, you most likely have already recouped what you paid for it. After this, every kW/h of solar energy you use already translates to savings.
What’s more, solar panel technology continues to see huge improvements. Updates that have resulted in solar equipment costs seeing an 80% decrease!
To top everything off, you’ll find financing services that’ll help you have those panels up and running as soon as possible. You can qualify for a loan that doesn’t require a cash down payment. You’d need time to compare service providers though, but it’s all worth it once you start seeing considerable drops in your electricity bills.
All these translate to more affordable installation expenses. So, why not take advantage of it now to start your savings as soon as possible?
So… Are Solar Panels a Good Investment?
You bet they are!
With solar energy powering your home, you don’t have to rely that much on the expensive services of electric companies. You also no longer have to worry about dealing with the potential rise in electricity rates for many years to come. Best of all, using renewable energy sources allows you to become a more eco-conscious individual.
All said, we hope that this brief but concise explanation have answered your question, “Are solar panels a good investment?”. But if you want to know even more about solar energy, then please feel free to check our other resources out!