Is Solar Panel Worth It? Best Keys to Determine It

When we think about making a big investment, we are concerned about whether we are spending our money on the right things. And we are not talking about buying a new tie – we talk about thousands of dollars and we have to think calmly.

A solar energy system is in this category. We hear that savings in long-term spending is a huge benefit. But, is the solar panel worth it? Is it really as wonderful as they say,or is it just another marketing trick?

The key to this decision is the price-value ratio. There are many factors that can tip the balance to one side or the other.

It’s important that we consider all the factors implied when deciding. Take things slowly, and analyze each of them to ensure your decision is correct. Let’s look at the most significant issues.

How much electricity do you use?

This is the first element to analyze. You can estimate your annual consumption by checking the monthly amounts.They should appear on your electricity bill. If the invoice does not detail the amount of kWh, request the information to the service provider.

To get an idea, an average three-bedroom house consumes between 3000kWh and 4000kWh per year. This value can increase depending on the type of appliances you have connected. Some of the higher consumers are:

Kitchens and ovens
Air conditioners
Room heating systems
Water heaters
Refrigerators
Water pumping systems

How much do I pay for electricity?

In each location there’s a different price for electricity. These costs vary from one place to another (believe it or not, there are countries where the annual consumption of a household with all the appliances mentioned above is only $10).

This average annual cost is a key factor in this long-term project. Make a simple calculation: multiply by 20 the cost of the service in a year and compare that figure with the initial investment.This will give you a good idea of viability.

Is solar power only good for sunny places?

This is a common myth. It’s true that in places where the impact of the sun is high, systems work more efficiently. However, in places where there are severe winters or the weather is not so sunny, the cost of electricity rates is usually higher.

It all depends on what we have mentioned before. It is a long-term investment, where all factors impact the price/value ratio. That’s why it’s best to analyze with detail, keeping in sight all of them.

The cost

The number of panels depends on the amount of energy required and the type of installation. Depending on the technology you choose, more or less equipment will be required. The technology to select depends on factors such as:

Available space
Weather conditions
Insolation (amount of sunlight)

Remember that since the power is not constant, the amount of energy obtained is not consistent. To give you an idea, if the system is projected for 3000kWh, it will give you about 2500kWh per year. From a projected system for 4000kWh, you will get 3400kWh. It all depends on the efficiency of the panels.

How will I fund it?

There are different options regarding money. In almost all the offers of solar systems providers you will find these three options:

Buy: the main con is that the money is delivered immediately. The big benefit is that this option is the one that gives a better return in the long run. The immediate purchase options that are offered in the market deliver the best prices

Loans: you will find many options of 0$ down. Consider the interests and the time of financing. There are some local governments that offer incentives in this type of option, such as special tax rates for solar projects
Leasing: There’re also many 0$ down plans. Another advantage that you will find in the offers is free maintenance, because the costs will be included in the leasing plan. Of the three, this is the option that gives less performance regarding the investment, but in general is not less than 10%

In addition to saving on the service fee, remember to research with the local government about the incentives for clean energy projects.

There may be some that are not about taxes. The important thing is that you consider any benefit you get. The value of your property is going to increase too, so keep thatin mind.

Keys to decide

Research as much as you can: This is a large-scale project and fortunately for you, there’s a lot of information available. If you have any friends who have already gonesolar, talk to them. That nice talk can be very useful
Compare different technologies: Each type of panel (monocrystalline, polycrystalline, amorphous, among others) has different efficiency, cost and behavior. Check each option and choose the most convenient
Battery or non-battery: This is also important. If the system doesn’t store electricity, you must depend on conventional electricity overnight. Buying batteries may increase your initial investment, but it will give you the best financial performance over time
Costs have dropped: 10 years ago, solar systems seemed to be unreachable. Nowadays, the technological advances in the sector have allowed companies to offer to the client accessible options
The competition has increased: Something very beneficial for us as more competition means best prices. Keep in mind that larger companies are not always the most economical

To conclude

Is solar panel worth it? When we think of this, at first it seems crazy. However, like any long-term investment, we must think and act slowly.

Don’t take in mind only the present. About 20 years thinking is needed when we are considering long-term projects. The key to success is price/value for money invested and time considered.

This depends on many factors, such as those we have mentioned. If possible, seek advice from an expert and never have a single opinion. Research very well and put in the blueprint everything you need to make your decision the most satisfactory.