Are Solar Panels a Good Investment?

Updated August 21, 2019

The advent of solar technology comes with the promise of tapping into the free energy that nature provides. Many modern-day homeowners have considered saving money on electricity for their homes by adding solar panels to their properties.

Solar panels image courtesy of PXHere

The current reality regarding solar power is much more promising than just ten years ago.

Here we will demystify this technology and the investment viability for you.

Solar Power Systems Explained

Appropriately referred to as photovoltaic (PV) panels, solar panels collect the energy that radiates from sunlight; converting this energy into electricity.

The silicon crystal-based panels are arranged and framed into a set called an array. These arrays are either mounted on the property’s rooftop or affixed to a post or stand near the property.

The solar arrays are connected to a unit called a charge controller, which regulates the power to the deep-cycle battery bank.

The battery bank is connected to a unit called the inverter, which converts the DC to AC.

Finally, the inverter is connected to the property’s electrical panel.

Determining Your Energy Needs

The best way to figure out how much the maximum energy usage for your home will be to take the electrical bills from the summer and winter months for your home.

Take the highest kilowatt per hour (kWh) usage for your home during those months to determine your peak energy usage.

There are higher energy demands during these seasons; this is why winter and summer months are used.

You can use solar power system calculators to figure out the right amount of solar arrays for your particular home.

Using utility bill management software is also an ideal way to monitor your power usage.

Grid-Tied Systems vs. Off-Grid Systems

There are two ways to apply solar power to your homes energy infrastructure, and the first is what is called grid-tied, and this means that you are using solar in conjunction with the power company’s power grid to power your home.

The second method is what is called the off-grid system, which strictly uses the power from the solar power system you have connected to your electrical panel.

Investment Viability

Now that you understand what the solar power system consists of, we can address its worthiness as an investment. Whether you are reducing your electrical expenses with a grid-tied system or eliminating your bill with an off-grid system, there is an obvious benefit to using free energy.

The determining factor is figuring out how many years until you recoup your investment for the system—by saving on monthly energy costs. The costs for systems and installation varies, but it typically takes anywhere from five to ten years to recoup on your initial investment. Here is a link to a Bankrate article that shares more information about the cutting costs and saving money on taxes by choosing to have solar panels installed.

Conclusion

Solar panels provide homeowners with access to electricity supplied by sunlight, and that means free energy. If you intend on keeping your property for the long haul, you will undoubtedly be glad that you switched to solar when your electric bill magically disappears.