What Difference with Switching a Home to Solar Power Make?

There were around 2.7 million homes with solar panels installed at the close of 2020. Through the utility sector and residential installations, the US has a 97.2 GW capacity. This is enough to provide energy for 18 million homes.

However, although the US is one of the leading proponents of solar power, it is still lagging behind the European Union and China. The latter installed more than 48 GW of PV capacity in 2020 alone.

Despite the cost of solar panels and installation dropping by more than 70% since 2010, there are still only 4% of US homes with solar power installed.

Is the cost putting homeowners off, or is it a feeling that there is no rush to switch to sustainable energy yet? If you switch your house over to solar power, what difference would it make financially, and to the environment during the installation's lifetime?

Why haven't more people switched to solar power yet?

There are a few reasons that homeowners cite for not embracing solar power when questioned. Here are some of the more commonly mentioned ones.

The investment required

The most common reason is the initial outlay involved with installing solar panels. While there is certainly a considerable outlay, there are incentives in place that can help homeowners switch less painlessly.

Information on the Smart Solar Energy website shows that there is the Federal Solar Investment tax credit, and at a more local level, 2022 Oregon residential solar incentives to consider. Many states and local governments in the US have some schemes in place to offer assistance to those wishing to switch to solar power.

The aesthetics

Another reason is the way solar panels look. For many homeowners, their house is everything. The current design of solar panels is considered by some to be unsightly.

Lack of sunshine

Some people don't believe they receive enough sunshine for solar panels to work effectively. Direct sunlight is indeed needed for maximum energy production, but solar panels work even on cloudy days.

Future developments

Some homeowners have pointed out how fast technology moves. If solar panels are more efficient now than 10 years ago, what will they be like in another 5? They are also likely to be smaller and perhaps less obtrusive which will please those worried about their home's appearance.

Another concern regarding progress is that if solar panels are installed now, they will look unsightly next to a home with newer versions in a few years. They may even lower the value of the home.

Is it financially viable to install solar power?

At least two of the concerns above were regarding finance or at least partially. The cost of installing solar panels is an issue, as is the worry that they may lower the value of a home. There is also concern that solar panels may be much cheaper down the line so why not wait a bit longer?

No doubt solar panels will keep getting more efficient, and the price will become easier to bear. However, you cannot start saving money through solar power until you have installed it.

The average household spends around $122 per month on electricity, or $1,464 a year. This is in the region of just under 900 kWh per month.

To produce 1,000 kWh per month you would need about 27 PV panels rated at 300 watts each. The cost of these panels differs across the country according to suppliers, as does the cost of electricity but would typically be $0.70 to $1.50 per watt on average. This means an installation of this size would cost perhaps $9,000.

What most homeowners are interested in is how long it takes for a solar installation to return a profit.

How many years will it take to see a full ROI?

One way to judge how financially viable solar panels are is to look at the average cost of a solar panel installation compared to the average household's electricity bill.

The average solar installation is around $12,000 after federal tax credits are taken into account. The average electricity bill is $1,464. According to these national averages, a solar installation could pay for itself in just over 8 years. This doesn't take into account possible thermal, shading, or other losses, however.

Another aspect of solar panels is how they impact the value of a home. Zillow produced one study into solar power that concluded that installation of PV panels could result in a home's value rising by over 4%.

What difference will it make to the environment if you switch to solar?

If you switch over by yourself you are unlikely to make much difference to the planet. Of course, that is the attitude that stops many positive changes from occurring.

If you switch to solar power, your household could save up to 12,000 kWh of electricity a year. Multiply that by 88 houses and 1 GW could be saved every year.

Solar power is one of the main options for sustainable energy today along with hydro and wind. For practicality, solar is possibly the easiest to use in the home and means a reduction in the use of fossil fuels to create electricity.

Yet, not all renewable energy projects are as eco-friendly as they seem. One huge hydro dam planned for Africa could see mangrove forests wiped out. And there is concern regarding the manufacture and production of PV panels today.

Carbon emissions and the impact of mining on the environment have all been cited as reasons why solar panels are not as green as many believe. However, some things need to be noted here. The carbon emissions used in the production of PV panels pales into insignificance compared to a lifetime of using electricity produced by coal-fired plants.

Is it necessary to choose an alternative power source right now?

Nearly 61% of all electricity is produced through fossil fuels. Renewable energy sources provide around 20% of the electricity used in the states today.

While renewable energy won't run out remotely soon, fossil fuels will. The EIA optimistically points out that there are enough recoverable coal reserves to last 470 years more.

The MET Group and others put the remaining coal reserves at a more modest 114 years. They also put oil and gas reserves at just over 50 years left each.

At current usage, fossil fuels will run out. Whether that is in 50 years or 500, the truth is that reserves are finite and alternatives need to be employed. With droughts, shrinking seas, higher temperatures, and wildfires more common, it is clear that changes need to be made now.

Indeed, to fight climate change, fossil fuel production needs to be shut down and a move towards cleaner energy sources implemented on a wide scale.

Summary

Solar power will become even more green as more people start to use it. Once it becomes more widely used other processes such as recycling will become financially viable.

Installing solar panels can pay for itself over some time. While it may be tempting to wait for newer versions down the line, the time to start helping the environment is now. Emissions need to be lowered, and fossil fuel use reduced before it's too late.

Solar power provides a clean, sustainable and practical energy source for a residential home today.