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As energy bills continue to climb, homeowners are constantly looking for more ways to save money each month. One major upgrade that you can consider for your home is adding solar panels. While the upfront cost may seem overwhelming, there are many great tactics that you can implement to reduce your installation expenses and cash in on long-term energy savings for your home.
Take Advantage of Tax Credits
Probably one of the easiest ways to save money on the solar panel installation process is to take advantage of available tax credits. Currently, the federal government is offering a 30% tax credit toward the price of your new solar panel system. This is the federal government’s way of encouraging homeowners to opt for more eco-friendly energy production methods.
Many state and local governments are even offering further tax rebates and credits for homeowners who invest in solar. You can instantly make back some of the money you invest in your new solar system thanks to these government tax credit programs. It’s best to check with your system installer to learn about all the tax credits and rebates that you can take advantage of thanks to your new solar panel system.
Be Mindful About Aesthetic Choices
Solar panel construction has come a long way in recent years. Most people think of the traditional black or blue color that is associated with a plethora of existing solar panels. However, solar panel installers have many unique options for homeowners these days.
You can choose from a wide selection of colors, including red, yellow, green, pink, and so much more. But realize that any aesthetic changes come at a higher price point. If you’re looking to cut costs during the installation process, opt for standard solar panel designs and colors.
Consider Selling Power
One extremely cool feature of installing solar panels for your home is that you can take advantage of their energy production. If you install solar panels that provide more energy than your home needs to function, you can actually sell that excess energy to your local utility company to make a profit. This can allow you to get monthly payments from your utility company to help reduce the price of your solar panels.
Most states will refer to this process as net metering. As your solar panels create more energy during daylight hours, that energy will be sent to the electrical grid for the local utility company to sell to its other customers. Realize that they don’t pay you the market price for your energy. Rather, there is a set net metering rate that states will pay homeowners for their solar energy production.
Consider Equipment Leasing
If you simply can’t afford the upfront costs associated with installing solar panels for your home, you still have another option to take advantage of this energy-efficient solution. You can opt to lease solar panels. Most companies will lease solar panels for a period of up to 25 years.
You’ll be responsible for paying a monthly lease payment for the use of the solar panel equipment. The leasing company will take care of the installation and removal processes. Most will provide you with the option to purchase the solar panel equipment at going market cost when the end of your lease is near.
Choose a Contractor That Has Financial Connections
Another great way to reduce your installation costs is to opt for using a solar energy contractor that has financial connections. When a contractor has various lenders that they can connect you with, you can take advantage of lower borrowing costs. For example, there are various lenders that offer 0% down financing options for those willing to invest in this eco-efficient option. This can save you a lot of money as compared to trying to find another lender that isn’t familiar with solar panel installation and all of its associated costs.
Installing solar panels is a great way to help reduce your monthly energy bills and your family’s carbon footprint. This energy-efficient option can come with hefty upfront costs. However, by implementing the cost savings tactics that we went over above, you can help to drastically reduce your financial investment in your new solar panel system.