Cost-Benefit Analysis of Solar Roof Panels
Solar roof panels are a great financial investment for American homeowners.
Harnessing the sun's energy to power the home will provide clean power, but it also requires a substantial up-front investment. It can be challenging for homeowners to determine if the investment is worth it.
Please keep reading to see if there's value from a cost-benefit perspective to have solar roof panels installed.
Scope
The scope of this cost-benefit analysis will be based on an 8.00 kWp solar system (kWp indicates the level of power a panel generates at its peak performance). The average American household consumes 899 kWh (kilowatt hours) monthly. Therefore, a solar array of this size is enough to cover most, if not all, of the electricity needs of a typical American family home. This system would have 20 panels and require roughly 350 square feet of roof space.
Costs
Regarding costs, there are two main factors to consider: the installation and maintenance costs.
Installation: The cost to install a system this size is approximately $22,160. However, American homeowners are entitled to the residential clean energy credit that would reduce this price to approximately $16,398.
Maintenance: The average solar system maintenance cost is approximately $200 annually. It's common practice that modern solar roof panels come with a 25-year warranty, usually covering any repair work.
The installation cost varies dramatically depending on whether the residential clean energy credit is included. For homeowners to be eligible, one must install the system on a residence in the homeowner's name within the U.S., and it must be purchased outright, not leased.
Furthermore, many states have additional financial incentives that may reduce solar installation costs. Check with the relevant government state agencies to determine eligibility.
Benefits
In terms of benefits, there are four main factors to consider. These include energy cost savings, selling surplus energy, property resale value, and environmental benefits.
Energy cost savings: The annual energy generation of a standard system is approximately 12,775 kW. The current average rate of roughly 23 cents per kilowatt-hour is an annual saving of approximately $2,938.
Selling surplus energy: This is only applicable if the household uses less energy than it produces. Selling surplus energy will fetch between 8 and 15 cents per kilowatt-hour.
Property resale value: The average increase in property value from installing solar roof panels is $9,274.
Environmental benefits: Solar roof panels produce zero carbon emissions, saving approximately three tons of CO2 annually.
The final analysis
Solar roof panels are a great financial investment for American homeowners. Assuming federal credit is included, the energy cost savings will cover the installation cost in just over five years. After this, all future electricity would be free, provided that more energy is generated than consumed, and in a time of rising energy prices, that's good news.
One could also create a passive income stream by selling the surplus energy. Combine this with the added resale value of the property and the massive environmental benefits, and the answer is a definitive yes.
Irish Roofing Company provides Scottsdale with roof inspection, installation, sealing and repair. We offer shingle services, tile roof services, flat roof services, roof cleaning, roof inspection, roof installation, leak repair, roof recovering, roof repair, roof sealing, skylight installation and replacement, and wood shake services for commercial and residential customers.
