Most people are aware of the environmental benefits of solar power. However, some consumers have been hesitant to invest in solar panels due to the upfront costs involved. Basically, they want to know that their investment will be worth it in the long run.
Are Solar Panels Worth It in Michigan?
When you factor in the cost of electricity in Michigan, the savings provided by solar power over time, and the rebates and incentives you can gain from switching to renewable energy sources, it’s clear that installing solar panels on your property can be a sound investment. In fact, it’s estimated that solar power is 8 percent more cost effective in Michigan than it is in the rest of the country.
Here are some of the top reasons why it is worth it to invest in solar panels in Michigan.
Cost Savings Over Time
Solar panels do require a higher investment up front than non-renewable energy sources. However, your monthly utility costs decrease significantly when you have solar panels installed. Over time, those monthly savings effectively pay for the installation. In Michigan, it usually takes about 15 to 20 years for a solar power system to pay for itself in savings. Most systems also come with a warranty that’s much longer, meaning the savings continue even after the system has completely paid for itself.
So if you plan on staying in your home or business for a significant amount of time, it’s more cost effective to go with solar power than it is to stick with traditional energy sources. Even if you’re unsure about remaining in a particular property, solar panels can increase the value enough to make the installation worthwhile.
Rising Energy Costs
Solar panels are a worthwhile expense in Michigan already, but they’re likely to gain even more value over time as the cost of traditional energy sources continue to increase throughout the state. Currently, Michigan residents pay an average of $0.14/kWh for electricity, which is above the national average. And prices have been increasing by about 5 percent each year, which is also well above the national average. Additionally, pricing for traditional electricity can be unpredictable, making it difficult for property owners to plan and budget for utility costs.
Rebates and Incentives
Even with all of the savings over time, some individuals still find the upfront cost of solar panels to be prohibitive. However, there are plenty of state, local, and national incentives available to help you cover a significant amount of the purchase and installation. The national tax credit allows you to recover about 30 percent of the initial cost as a tax credit.
Michigan also has a net metering policy, which requires you to obtain utility credits for any extra energy your system has produced. These credits don’t expire and can help you continually increase your savings over time.
It’s clear that solar panels are a worthwhile expense for residents and business owners in Michigan. Even with the cost of purchase and installation, the savings more than make up for it over time. And those savings are continuing to increase each year. If you’re interested in taking advantage of all the financial and environmental benefits of solar energy, contact The Green Panel today.