Texas ranks second in the USA when it comes to solar power installations, thanks to an abundance of sunny days. Solar panels in Texas are also 4% cheaper now than they have been in the last 5 years.
These two factors are enough to convince most people that now is the time to go solar in Texas. Yet, every homeowner knows that it’s also important to figure out how long it will take for this investment to pay off.
Check out this 3-point guide to figuring out your solar payback period.
Calculating the Cost of Solar Panels in Texas
Solar panel installation cost factors are the major expense when it comes to implementing solar power for your home or business.
So shop around and compare prices to find the best deals before you choose a solar panel installer. Power purchase agreements and leases can provide a more cost-effective route to going solar.
Once you’ve found out how much you can expect to pay for your solar, remember to deduct any incentives and applicable rebates from that cost.
These include the federal income tax incentive which allows you to deduct 26% of the cost of your solar panels from your annual taxes in 2022 and cash incentives from Texas power companies.
Be sure to include interest payments in your final cost estimate if you’re taking out a solar loan.
How Much Will You Save With a Solar Power Installation?
You save money on your electricity bill with solar power, whether you opt for an off-grid or on-grid system in Texas.
If you’re going off the grid, calculate how much you spend on electricity every year, according to your electricity bill. If you’re opting for an on-grid system, calculate the difference in per Kilowatt-hour charges between the two options.
Add any potential SRECs (Solar Renewable Energy Credits) and PBIs (Performance-Based Incentives) to this amount. Remember to include net-metering credits in your final amount, too.
The Answer to Your Solar Payback Questions
Divide your total costs by your annual total savings. This is how many years it will take for your solar panel to start paying for itself.
After that, every cent you save on electricity is extra cash in your pocket.
Apart from savings on electricity, solar panels also add value to your home. In Texas, you won’t pay increased property taxes due to this.
Remember, apart from cleaning your solar panels occasionally, you won’t incur any maintenance costs throughout the 20-year lifespan of your solar panels.
Are Solar Panels Worth It?
The benefits of installing solar panels in Texas extend far beyond your household budget. When you implement sustainable energy in your everyday life, you’re making an important contribution toward a better future for us all.
Conventional electricity is a major cause of global warming, that’s slowly impacting all our lives by disrupting weather patterns, and hastening our extinction.
So, keep the big picture in mind when deciding on the choices you make about solar power for your home.
Would you like to find out more about how technology can improve your life? Browse some more articles on our website.