If you’re a homeowner looking for ways to become less dependent on the power grid or combustible fuel sources, solar probably looks like an attractive option. With high-quality solar panels, your home can make use of an abundant natural resource that won’t pollute the planet. But having a solar company install panels can be quite expensive. In the end, you need to know if it’s a financially prudent choice for a home improvement project.
In the video posted here, the host goes through the financial side of owning solar panels. The installation cost was over $40,000, and he had to get it financed, which meant the cost with interest would be over $66,000 after 25 years of payments. Some of that cost was offset by a government program that paid over $12,000 to subsidize the installation.
While this may seem like a lot of money, in exchange, he not only gets to power his property for free throughout the year, but he also gets to cash in on solar renewable energy certificates (SRECs). These certificates are awarded from the state for every 1000 KwH produced by his private solar array, and he can trade them in for cash. In 2020, each SREC sold for over $220. This meant that he could more than cover each monthly payment for his solar panels, leading to a net gain in money instead of a loss.