The cost of solar panels lies in the timeframe you're looking at. If you're considering short-term usage, there's going to be a cost. In the long run, however, your solar panel system may end up paying you.
In general, a residential solar power system can cost anywhere from $5,000 and up after available incentives, though the cost varies depending on the size of the system that's most appropriate for you. However, in many areas, the initial cost of solar panels is paid back by electric bill savings in just a few years.
Depending on how shaded your home is and the amount of incentives available, your solar system could end up being worth many times the initial investment over the course of its lifetime. Of course, the cost of solar panels does vary based on location (rooftop or ground mounted), type (grid-connected, battery backup, etc.) and other installation concerns (location to electric panel, type of roof, etc.). However, YellowLite strives to get you the most affordable price on quality, maintenance-free solar panel systems producing power for not years, but decades. That means decades of savings.
An investment in solar results in savings from day one ‐ and not just on your electric bill. Solar will also increase your property value, as the panels are an added asset to your home. According to the U.S. Department of Energy, a study found that homes with solar panel systems sell for a higher price than comparable homes without them.
But let's assume the home you own is the home you plan to keep. Investing in a solar power system is protection against increased utility bills due to the increases in electricity rates from the government regulations and restrictions placed on coal and fossil fuel power plants that make those more expensive to operate. Based on these expected electricity rate increases, your solar panel system could save you thousands of dollars on costly increases throughout the lifespan of the system.
Most solar panel systems supplement electricity usage, rather than completely offset it. Of course, it's possible to completely offset your bill, but available roof space and budget are factors to consider. But consider this: Based on improved manufacturing technologies, solar panel prices and quality are now the lowest they've ever been. Warranties are available for up to 25 years and panel efficiency is over 21%. Coupled with incentives mentioned above, now is a great time to take advantage of solar power for your home or business.
Are There Financing Options?
YellowLite offers a variety of financing options, each best-suited for different situations. A popular option offered with SunPower systems is the Same-As-Cash (SAC) SunPower Loan option. With the SAC option, the customer pays $0 down with 0% interest for a full year. Imagine, 12 months of pure savings without paying a dime. Another incentive is the Federal Tax Credit. This tax credit allows Ohio residential customers to deduct 30% of the cost of a solar panel system from their personal federal income taxes after a system is installed. This tax credit is how the government is incentivizing clean energy. It has no upper limit, and is available on systems installed before Jan. 1, 2017.
Another incentive available for Ohio solar customers is the Renewable Portfolio Standard (RPS). With the RPS, public utilities are mandated to purchase Solar Renewable Energy Credits (SRECs) from residential customers. A "credit" is given for every 1,000 kilowatt hours (kWh) of electricity produced by your solar panel system. The value you'll get paid for each credit varies (from $20 - $200) depending on market fluctuations. The SRECs you produce and sell are above and beyond the electric bill savings your system will give you.
Home Equity Loans are another financing option for Ohio residential customers. Through the ECO-Link Program, the State of Ohio Treasury will offer up to 3% interest rate reductions for secured loans based on the equity in your home. Basically, the interest rate a customer was approved for will be partially paid by the state government as an incentive for homeowners to invest in energy-efficiency and renewable energy. Contact a YellowLite Solar Consultant for more specifics on what incentives are available in your area, and the different financing options that you're eligible for.
What if my House Has Shading?
A solar panel system converts the light energy from the sun to electricity for you to use. If shading prevents light from hitting your panels during the peak sun hours of the day (between 9 a.m. and 3 p.m.) then cutting or trimming foliage may be a good thing to do before looking into solar. YellowLite will be able to cut and trim for you at discounted prices if you're looking to install a solar panel system. If shading is not a significant issue at your location, then your panels will produce high levels of electricity. YellowLite will be able to determine the feasibility of solar using our satellite software and with an onsite analysis.
Is an In-Home Consultation Required to Determine Cost?
An in-home consultation is not always required to determine cost, but is sometimes required to verify the system size that can fit at your location and to take a shade analysis. There are certain cases, however, where an in-home consultation is necessary to verify the existing electrical setup of your home or building and to verify other installation considerations.
Can You Just Give me a Cost Over The Phone?
Yes! And the price we give you is the final price that you pay. We may take measurements to verify the energy output and amount of panels that can fit, but again, the price we offer is the final one.
What Factors Determine the Cost of Installation?
To determine the cost of a solar panel system at your location, there are a few factors to consider. What is your average monthly cost of electricity? If you have gas heating, then a solar panel system will align with your electricity usage well and lower your bills in the summer months when the panels will produce more electricity.
Are Some Brands Cheaper Than Others? What Makes One Brand of Solar Panel Better and More Expensive Than Another Brand?
Some solar manufacturers have been making modules for only a few years, and purchase their solar cells from other manufacturers. These panels are lower quality and cheaper than panels YellowLite installs. For example, the SunPower 345-watt X-Series high-performance panels we offer are the same square footage as a typical solar manufacturer's 250-watt panel. SunPower panels may be slightly more expensive when comparing the price-per-watt of these panels to others, but that's because of the engineering that goes into making each cell the most efficient and durable it can be. The newest generation of SunPower X-series solar cells allow for panel efficiency of over 21.8% as compared to the industry standard of 15%. Another indication of the quality of the panels we install is the warranty they're backed by. Our panels are covered by a manufacturer's warranty of 25 and 30 years for power output.
In addition, some solar manufacturers specialize in electronics, TVs, laptops, etc., and make solar panels on the side. With these manufacturers, there have been tendencies to close their solar division during industry slow periods or when consolidation occurs. YellowLite works with companies that focus on solar. SunPower, MAGE Solar, SOLON and Canadian Solar are manufacturers that focus on making the best solar product available.
Will I Have Power When The Grid Goes Down?
A typical solar panel system consists of solar panels, an inverter and the electrical wiring to your home's electrical system. This standard solar panel system is grid-connected, and will not allow for power when the grid goes down. To have this off-grid capability, batteries and charge controllers are needed to supply your home with power in the event of an outage.
Ready to lower your energy bill with a YellowLite solar system? Fill out our online contact form or call 216-333-1364 today!
Referenced statistics on home values were obtained in the study, "An Analysis of the Effects of Residential Photovoltaic Energy Systems on Home Sales Prices in California," U.S. Dept. of Energy Lawrence Berkeley National Laboratory, April 2011.
