Installing solar panels can be a great way to reduce your carbon footprint, but it can also be a good way to save money on your energy bills. These are five proven ways to save money by installing solar panels on your roof.
1. Generating your own electricity. The main thing that most people think of when they consider solar panels is the ability to generate their own electricity without having to rely on the local power company. While it’s hard to rely on solar power entirely to generate all the power a home needs, it can greatly reduce a home’s dependency on traditional power sources. Some people choose to wire the solar panels so that they provide the electricity necessary just to heat their water or run a few appliances. This means that a homeowner doesn’t have to foot the bill for enough solar panels to run their whole house, but they can still see significant savings on their energy bills.
2. Negotiate lower rates with your power company. Many power companies offer discounts or rebates for homes that have solar panels installed. Even if your power company does not do this, it is possible to use the power from the solar panels during times of peak consumption. This will mean that your household is paying lower energy bills because power used in off-peak hours is much less expensive.
3. Sell power to your friends and neighbors. When your solar panels generate more power than you and your family can use, you can choose to either store it in batteries or sell it back to the power company. Essentially, the power is carried over along the preexisting power grid to the homes of your neighbors. When this happens, your energy meter actually runs backwards, reducing the total amount of electricity you and your family consumes. At the end of particularly sunny months, it is common for homes with solar panels to get a bill showing a negative balance.
4. Improve the selling price of your home. Homes with solar panels are in very high demand, making the solar panels a great selling feature. While no statistics have been kept, many homeowner’s report getting back at least half the cost of installation when they go to sell their home. In addition, the home sells faster.
5. Save on your taxes. There are many tax credit offered to people who install alternative energy sources.