Sustainable lifestyles and eco-friendly choices are increasing the need for clean energy. Solar energy is a popular option for many in the US. Data says that Colorado ranks 13th overall for choosing solar energy. Many homeowners are naturally cautious about investing in solar panel installation as it is expensive.
Even after the 30% federal tax credit, the high price of solar panels makes homeowners wonder if solar panel installation in Colorado is worth it. ARE Solar is the premier solar panel installation company in the Denver Metro Area. This full-service solar installation company provides custom-designed solar panel systems to meet the needs of homes and businesses in Denver, CO. ARE Solar understands that many homeowners get overwhelmed thinking of solar panel installation. But, the company assures them that as a professional solar installation company, ARE Solar will get the job done right. This industry leader in solar solutions answers questions and helps with city permit paperwork, utility interconnection, rebates and tax credits, etc.
Some Aspects That Will Help Understand Whether Solar Panel Installation Is Worth It in Denver, Colorado
As Colorado gets sunlight in abundance and considering the average price of solar equipment across the state, solar panels would be worth it for most homeowners in Colorado. Still, it is beneficial to understand some aspects that affect the value of solar panel installation to help homeowners choose based on individual situations.
1. A home’s electricity consumption pattern
Depending on the monthly energy consumption of a household, the size of the solar power system and the number of solar panels will vary. Energy needs are an important factor because the panels are priced according to the size of the solar system.
Households that use less than 500kWh a month may not benefit from solar panel installation. Below this level of energy use will not give enough energy savings to make it worthwhile. However, since, on average, homes in Colorado consume around 711 kWh, solar panel installation will benefit most homeowners.
2. How much does solar cost in Colorado?
The system size must be around 7.5kW in order to save energy. Thus, the cost must be determined appropriately while taking into account federal tax incentives. Solar panel installation before December 31, 2022, would give a 30% tax credit when filing federal taxes to help you offset the cost of the entire solar system. So, if you spend $20,000, the government will give you $6,000 back.
Usually, solar panels are more worth their price in places where electricity is costly, and energy bills tend to be high.
3. Payback period
For homeowners who purchase solar panels and use their own money, the savings on electricity bills will most probably make the investment in solar panel installation worth it. The time taken for solar panels to pay for themselves by the savings they bring is referred to as the solar panel payback period.
There are estimates that the payback period in Colorado is between 10 and 16 years. However, it is better to use a solar calculator or have a reliable solar panel installation company assess a home and provide an estimate on the payback period. Usually, solar panels give owners a return on investment. But, if the payback period extends beyond 16 years, the ROI would be less than average.
4. Buy-back rates
States have energy buy-back or net metering policies through which utility companies buy surplus energy generated by solar panels from homeowners, which helps reduce or do away with electricity bills. It also adds to the return on investment in solar panel installation. Colorado has a net-meter policy that varies between electricity providers. The credit rates for each kWh produced in surplus may vary between companies. Some homeowners may choose to have a solar battery also.
5. Sun available on a roof
Solar panels generate energy only if they get sunlight, so their value depends on the sunlight they receive. Colorado is a sunny state. Other buildings or nearby trees must not shade roofs to get maximum sunlight. Roofs facing the south and the west are best for solar panel installation as they face the sun’s path in the sky. If solar panels are covered by snow, solar energy is not produced. However, usually, snow melts quickly enough and keeps panels clean.
