Costs & Savings
Cost of Installation & Savings
When it comes to solar energy, many people think a solar system would cost a lot of money, and this skepticism is understandable specially in today’s day with so many trendy investment opportunities available, that promise to “save you lots of money.”
The simple answer to the question “do solar panels really save you money?” is yes. In fact, you can start saving money by switching to solar power, even with financing options that allow you to go solar with zero money down. You will produce your own clean electricity from solar panels rather than buying more expensive electricity from your local electric company that causes untold amount of pollution to create that energy.
Let’s not forget that you will get back up-to 26% of your solar system cost as a tax credit which could be deducted dollar-for-dollar from your yearly taxes. Also, you may be eligible to receive rebates or incentives from your local utility company if applicable. These will significantly increase your savings.
Although you will save a lot of money by going solar, however, it is important to understand just when you can expect to see these savings. Some options allow savings from the very first day of installation; That is if you borrow money with a loan or qualify for a lease, you can reduce your monthly electric bill immediately. The other option would be to purchase the solar system; If you decide to buy the system, you will have an upfront expense but will save a lot more in the long run since you have the option to pay off portion of your investment using the investment Tax Credit (ITC).
With that been said, there are other important aspects that will determine the true value of your savings, such as direct hours of daily sunlight and the size and angle of your roof. Yet, local electricity rates play the biggest role in determining how much solar energy can save you. In the paragraphs below you will learn more about those savings.
Understanding Your Utility Company’s Rates
Each utility company uses different structure or “tiers” of usage and each has a different formula to calculate electricity cost. Higher energy usage tiers have higher rates. In these schemes you pay more as your energy demands increase. However, when you “go solar” your utility company removes the top tiers from the cost formula. Therefore, the more you are spending on electricity current, the higher the ROI (Return on Investment) you will enjoy on an installed solar system.
Amount of Solar Power You Will Get from Your Solar System
The electricity generated by the solar system is dependent on a variety of factors and the same system on different situations will produce different results. Factors such as roof slope, roof orientation, shading, temperature, latitude, azimuth, and degradation of solar panels, etc. all play important roles in designing your solar system. We take all these factors into account and design a custom solar system uniquely for your home or business which will satisfy all your current and future electricity needs.
Some people believe that their roof must be only facing south to be able to generate solar power efficiently, but the truth is, east and west roof orientation can also be effective. It all depends on the arrangement of your solar panels, which should be determined based on your property’s location and the amount of sun exposure it gets throughout the year. Our professional solar installers use tools like the Solar PathFinder or Solmetric SunEye to measure shading patterns and quickly determine the total available solar energy by day, month, and year. Cyrus Contractors Inc. guarantees production throughout the life span of the solar panels.