Solar energy is the future of residential power. It’s affordable, safe for the environment, and highly reliable. But how exactly does solar save you money over conventional energy sources? Let’s take a look at how solar energy will save you thousands of dollars.
Solar can be used to offset your entire energy bill or just a portion of it. Let’s assume that you are getting a solar pv system capable of producing energy for your homes entire energy needs. The first factor that will help your solar energy system get paid back faster are tax incentives. The federal government currently offers 30% back on the total cost of solar in tax credits to those who make the switch. Depending on which state you live, there might also be state tax credits available. Utah offers 10% back up to $2000 on solar panel systems. Let’s see how these tax credits affect a $20,000 solar system.
The federal tax credit will reduce your cost by $6000 and the state tax credit would reduce it by an additional $2000. That brings the cost of a $20,000 solar panel system to $12,000. That decrease in price reduces the payback of the system from 14 years to 8 years. After your system has paid itself back in 8 years, every year after the payback is money saved. A $20,000 system would end up saving you around $38,000 dollars in utility bills over 25 years.
Get a free solar estimate to see how much you could save in Park City and the surrounding area.