Solar energy is becoming an increasingly popular way to power homes. However, the cost of installing a home solar energy system can vary from location to location.
Homeowners in Dallas can benefit from several incentives that can reduce solar installation costs. These include a 30% federal tax credit and bill credits for the excess electricity solar panels produce.
Cost of Solar Panels
Solar panels are an investment that can save you money on your energy bills for years to come. However, before you decide to go solar, it’s important to understand the basics of how solar works and what your upfront costs will be. Solar panel prices vary based on the type of solar panels, their wattage and the number you need to power your home. They are rated in watt-hours, the amount of electricity one panel will produce at noon on a sunny day at the equator.
The cost of labor plays a large role in the overall cost of a solar power system. You’ll want to hire a local solar installer with great references and experience—also, factor in the potential need for repairs, which can add up quickly.
Cost of Installation
Home solar is popular in Texas because residents pay higher electricity rates than in many other parts of the US and get lots of sunshine. Consequently, the upfront cost of going solar is quickly paid off by savings on utility bills. When buying solar panels, it’s crucial to consider factors that affect the average cost to install solar panels in Dallas, such as the brand, size, and energy-efficiency rating.
Moreover, homeowners should remember that including a battery in their system may lead to price variations. For example, adding a battery will increase the system cost by 30% to 40%, depending on whether the battery is off-grid or grid-tied.
Other installation costs include the cost of inverters, a backup power supply, wiring and labor. Permits, utility fees and inspections also factor in.
Solar buyers can buy their system with cash or take a solar loan. Some homeowners lease their solar system instead, so they cannot claim the federal tax credit. Moreover, they must find a buyer willing to take over the solar lease agreement if they want to sell their home.
Cost of Solar Batteries
Solar battery systems store DC energy to offset electricity use when the sun is not shining. For example, installing solar batteries cost about $1,500 and require an inverter to convert direct current into alternating current. If your solar panel system can produce more power than you consume, you can sell the surplus to your utility provider and receive credits on your electricity bill.
The size and configuration of your solar panel system will determine how much it costs. The type of solar panels and inverters you choose, your roof’s slope, local installation fees and taxes, and whether you lease or buy the system can also affect prices.
Incentives can significantly decrease the cost of a solar panel system. For example, homeowners can claim a 30% tax credit with the Residential Clean Energy Credit. Residents can also participate in community solar projects and receive credits on their electric bills for generating power. Other incentives include net metering and solar buyback programs.
Many different tax credits and rebates offset the upfront cost of a solar energy system. Federal, state, and local governments, as well as electric utility companies, offer these incentives to promote the adoption of renewable energy. They are available as cash rebates, Solar Renewable Energy Credits, and property tax exemptions.
For example, a homeowner may be eligible for a $2,500 rebate through a Texas utility provider. These rebates reduce the overall cost of a home solar power system by up to 65%.
Once your solar system is installed, you can enjoy additional savings by signing a net energy metering agreement with your electric utility company. This policy lets you receive compensation for any excess electricity you produce and supply to the grid, which can significantly lower your monthly bills.