How Much Can I Save with Solar Panels Colorado
Would you like to install a solar panel in your home in Colorado? There are many factors that you should consider. Solar panels have proved to be very important in saving the energy cost for the residents of Colorado. You do not have to rely on the national grid’s electricity to utilize the appliances you have at home. This energy is usually free. Also, in case of a blackout, you can still enjoy using power in your home. Backup power has made many homeowners in Colorado to install solar panels in their homes. However, many people ask themselves about the cost of solar panels, Colorado installations, and how they can save more with the systems.
To start with, Colorado usually has a tremendous solar resource. It is capable of yielding hundreds of times as much electricity as the state consumes. Therefore the solar energy in Colorado has created many opportunities as far as electricity generation is concerned. Also, it has played a significant role in research and development and the manufacturing sector. Figuratively, Colorado is ranked as the 11th in the nation when it comes to solar installation.
As of 2016, 925.8 MW of solar energy have been installed. By 2050, the state has committed to getting 100% of electricity from renewable sources. Solar energy is one of those options that will make this dream a reality. As you plan to install this power, you must know the cost of solar panels in Colorado and what you can save in the long run. Here is what you can save by installing solar energy in your home:
1. Net metering
Net metering is a billing system that allows residential solar systems to feed excess energy that they yield back into the grid. If the solar system does not produce enough power to serve your home’s needs, you can consider pulling from the grid. With net metering, you can be sure that you can keep track of how much energy you have used and what power goes into the grid.
It is worth noting that net metering has proved to be very useful for many homeowners as it enables them to earn a rerun on their investment. Therefore, most homeowners who rely on solar panels in Colorado can offset most of their electricity costs. Since most of the energy that the solar panels generate usually goes to feed the home at night, they can get paid for the Colorado Law’s retail utility rates. As a result, they can save more on energy costs.
2. Tax incentives and rebates
Apart from net metering, you can be sure that you will benefit from tax incentives and rebates offered to Colorado residents. The federal tax credit applies to all homeowners who have installed solar power systems in their homes.
Here, you will get credit for the extra electricity that you generate and benefit from producing clean energy. You can trust that you will not pay taxes on your solar system. It is helping you to save more money.
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3. The federal solar tax credit
It is worth noting that the federal tax credit can lower your solar panel system by about 26% of the total solar power installation costs. However, it is essential to remember that the ITC only applies to those who bought their solar system with cash or a solar loan. For this tax credit to affect, you should ensure that you can make enough money annually. At the end of 2020, the amount of credit will decrease from 26% to 22%.
4. Tax exemptions for solar energy equipment
Solar power users in Colorado can enjoy tremendous tax breaks. First, you do not have to pay the government anything for your new solar energy system. Solar Panel systems are sales tax exempt.
As a result, most homeowners in Colorado can smile as this will help them save more money. Apart from this, the Property Tax Exemption for Renewable Energy Equipment usually allows you not to pay the tax imposed on the value of the house because of your solar system.
5. Reduced energy bills
Most homeowners have been complaining about incurring high energy bills monthly. There is a nearly double-digit increase in electricity bills over the past ten years. Since most of them had earlier connected their homes to the national grid, they have resorted to switching to the solar electricity system.
With solar power, you will save more on a monthly and even annually as the only cost you will incur is the initial upfront fee. Once the solar system installed in your home, you can trust that you will get free electricity after that. The good news is that you will not be subject to the fluctuating costs of non-renewable energy.
6. Size of the system
Different homeowners usually have different needs. Some homeowners would like to have several solar panels in their homes. However, others would like to have a few panels in their homes. Depending on the number of solar panels you want in your home, you can either save or spend more money as afar as up-front fees are concerned. However, after that, you will be able to save more and enjoy more convenience.
7. Type of the solar panels
Solar panels usually come in different types. However, the two common types you are likely to find out there are monocrystalline and polycrystalline. Although these panels work in the same way, you will note that monocrystalline is more streamlined in appearance. Also, it is a higher efficiency rating and can cost more compared to its counterpart.
8. The solar installation company
Your company of choice can determine the amount of money you will use to install a solar panel in Colorado. Since these companies are many in Colorado, you should be keen to choose the one that fits your budget.
Some solar installation companies in Colorado will charge a higher fee due to their equipment to offer their services. However, others will charge more merely because they incur huge costs for promoting their services. Your company of choice will determine whether you will save more or not.
Solar installation in Colorado has indeed helped many homeowners save more on electricity bills. Since solar energy is a renewable energy source, you can be sure that you will get the value for your money. If you choose a reliable solar installation to work with, you can save more. Consider these ideas when installing a solar panel in Colorado today, and you will not be frustrated.