As a homeowner, energy costs can become a going concern for your monthly budget. Your price can be determined by location, the amount of energy consumed that month, and seasonal or new price hikes by the utility company. Thankfully, there is a way to not only gain your independence from the utility company but also save dividends on your monthly energy bill and reduce your carbon footprint. The rising affordability of solar panel technology has made it a direct competitor to the traditional grid utilities that can stand to save homeowners thousands of dollars over the years. The question then becomes how much can you save when you switch to solar panels in Harrisburg PA? By breaking down the cost of each, we’re going to find out.
Average Pennsylvanian Home Energy Cost
Before going into the costs of solar panels in Harrisburg PA, we must first understand the average cost of energy for a Pennsylvanian home. The U.S. Energy Information Administration reported that the average cost of electricity for residential homes in PA is 16.63 cents per kilowatt hour. With homes in PA consuming an average of 1,198 kWh per month costing around $200 and 14,376 kWh per year costing around $2,390, the expenditure on utility energy can add up quickly and become quite expensive. Within 25 years and considering the expected utility price hike of 0.5% every year, the cost of energy would be over $60,000
Average Cost of Solar Panels in Harrisburg PA
While the price of traditional energy from the grid increases over the years, the cost of solar has significantly decreased. The cost of solar panels in Harrisburg PA ranges depending on the size of the system that you install. On average, a Pennsylvania home requires an 11.5-kilowatt system to offset 100% of its annual energy consumption. If you were to pay for an 11.5-kilowatt system in cash, it would cost around $25,000 after the applicable federal tax credit. With a system of this size, your energy bill would be eliminated entirely. Since most solar owners opt for a smaller system we will also use a 6-kilowatt system as an example. This size system would cost between $12,00 and $15,000 and would cut your energy bill in half.
So how much do you really stand to save by switching to solar panels in Harrisburg PA? By installing an 11.5-kilowatt system that will offset your energy consumption entirely, your solar panels will end up paying for themselves through energy savings in around 11 years. With the vast majority of solar panels lasting well over 25 years, solar panels will have reached their payback period before half of their expected lifespan. In another 10 years after the cost of solar has been covered, an additional $24,000 can be expected to be saved on energy costs.
Additional Savings with Solar Panels in Harrisburg PA
The savings are not limited to energy expenditure. With the available incentives, solar panels in Harrisburg PA become even more affordable. Recently, the federal government extended the solar tax credit, meaning those that have solar panels installed within the next 10 years qualify to have 30% of the cost of their solar panel system to be reimbursed via tax credits. With this tax credit, a system that would have cost $33,000 now is only around $23,000. Along with the federal tax credit are the option to utilize SRECs or solar renewable energy certificates. With SRECs, you can sell your green energy to the local utility company to assist them in meeting their green energy quotas. These credits work like shares of a stock that fluctuate in price and can be sold by the owner of the solar energy.
By harnessing your own energy, you gain independence from the local utility company. This means that you are protected from the inevitable spikes in the cost of energy, which are currently rising by 0.5% a year. You also won’t have to rely on the energy companies during a power outage. If your system has battery storage, you will be able to keep your lights on while the energy company scrambles to restore power.
Save with a Professional Solar Provider
If you are ready to make the smart switch to clean and renewable energy, Lumina Solar can help. Our team works closely with each of our clients to ensure that they take advantage of every solar incentive available and maximize their savings. We want you to enjoy all of the benefits of solar, which is why we formulate a personalized solar plan, curated specifically to match your unique energy needs and budget. With our variety of payment plans, solar can be an option for any financial situation. Call or contact our team to speak with a solar representative and begin your solar journey today!