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Many solar panels are warrantied to last 25 years, though their useful life is likely longer. On top of that, they're fairly maintenance-free, just requiring that you keep them free of obstructions like dirt, leaves and snow. More extensive repairs may be covered by warranty.
Solar panels become less efficient over time, though that downward trend is not necessarily a problem. A typical manufacturer's warranty will guarantee that your solar panels won't lose more than 2% efficiency in the first year and not more than 0.5% per year in the next 24 years. That means your panels are guaranteed to produce at 84% their original capacity after year 25. Some panels will set a higher benchmark — like 92% — after 25 years, but you'll still be getting plenty of electricity out of them two decades on.
Installing a solar battery in your home will allow you to store excess energy produced by your panels. However, they are currently almost as expensive as a solar panel system (from $12,000 to $22,000), so while a battery is nice to have, it's not a necessity.
There are instances where a solar battery is worth the investment. Those who live off the grid will need a battery to use solar power. And if your area is prone to frequent blackouts or you have medical needs that require refrigerated medicine or machinery, a battery may be worth the cost.
If net metering has been eliminated or weakened where you live, a battery might make solar a better proposition. Since you won't be compensated as much for the energy you send to the grid, storing more of it to use later can save you more money, despite increasing the initial cost of the system.
There is a variety of options for paying for the installation of residential solar panels, aided in part by the 30% federal tax credit. Homeowners can pay out of pocket for the entire project, then receive money back from the government. There are also plenty of solar loan options that also allow you to claim the tax credit. Interest rates have shifted higher over the last year or so, which means you should shop around for the terms that best fit your needs. Other financing options include bank loans or a home equity loan, but given their higher interest rates, consider these financial tools carefully.
For those without the financial means to buy or finance a system, there are solar leases and power purchase agreements. A solar lease is similar to that of a vehicle, where you pay a set amount each month for a system that will be owned by the installer. Under a power purchase agreement, you pay a set rate for the energy that is generated by the solar panels (the rate may increase after a certain amount of time), rather than the system itself. The drawback of these mechanisms is that you won't own the solar panels yourself, and hence won't get any of the tax credits or have the ability to sell renewable energy certificates.
The federal residential solar energy credit, which grants a 30% credit to homeowners who install panels on their home through 2032. (If your entire project costs $30,000, you'll be granted a credit of $9,000). The credit applies to homeowners who purchase a system with cash or through financing. According to the Office of Energy Efficiency & Renewable Energy, you should seek professional tax advice to determine your eligibility, then fill out IRS Form 5695 following the instructions.
Before you start the process of going solar, you should try to improve your home's energy usage in other ways.
"Solar is an exciting type of infrastructure, but if the ultimate goal is to save money on your electricity bills, I encourage homeowners to think about efficiency upgrades first," said Gilbert Michaud, assistant professor at Loyola University Chicago's School of Environmental Sustainability. "Those could include insulation, upgrading and replacing windows or other things that are maybe less fun, but can help you realize savings immediately and lower costs. Once you've done those efficiency retrofits or upgrades, maybe solar is a good idea."
These upgrades will give you a clearer idea of how many solar panels you'd need to power your home, too. That means you'll likely need less panels — reducing the cost of the installation — than if you didn't do efficiency upgrades first. Here's some suggestions.
Many experts say that homeowners will see a return on investment on a solar panel installation in a period between seven to 12 years. That's when the money saved from paying your energy bills will exceed the initial money spent on a solar project. Those who go solar through a lease or power purchasing agreement should see savings practically immediately.
If you have the funds, it's better to buy solar panels rather than lease, and that's mostly due to tax credits. The federal government will provide a 30% tax credit for the total cost of the project. This will take a huge chunk off the bill. The sooner solar panels are paid off, the sooner they provide "free" energy. With a lease, you'll get the benefits of reducing your energy bills but not the credits that accompany solar power, and you will typically save less money over time.
It depends on where you live. Within many municipalities (or if you have a homeowners association), you'll likely need to get a permit before work can start. Most installers take care of this process for you.
Many of today's solar panels have warranties guaranteeing their use for 15 to 25 years. Panels are likely to still work after this period of time, although at slightly less efficiency.
Solar panels need very minimal maintenance. The only care required would be to clear them of any dirt, leaves or snow, but this is not something you'd have to do regularly.
That will be up to the property's owner, but even if they're opposed to installing panels there are ways for renters to access solar. There are smaller solar devices you can use at home. You can also check if there are any community solar options in your area, which will allow you to buy electricity from a nearby solar farm to reduce your energy bills.
Written by
Stephen J. Bronner,
Michelle Honeyager
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Reviews ethics statementStephen J. Bronner Contributor
Stephen J. Bronner is a New York-based freelance writer, editor and reporter. Over his more than a decade in journalism, he has written about energy, local politics and schools, startup success tips, the packaged food industry, the science of work, personal finance and blockchain. His bylined work has appeared in Inverse, Kotaku, Entrepreneur, NextAdvisor and CNET, and op-eds written on behalf of his clients were published in Forbes, HR Dive, Fast Company, NASDAQ and MarketWatch. Stephen previously served as contributors editor and news editor for Entrepreneur.com, and was the VP, Content and Strategy, at Ditto PR. He enjoys video games and punk rock. See some of his work at stephenjbronner.com.
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