Are home solar panels worth the cost?
NORTH TEXAS (CBSNewsTexas.com) — Tuesday was the hottest day of the year so far in our area, with the temperature at DFW Airport peaking at 108 degrees at 2:58 p.m.
No doubt, a lot of North Texans are trying to keep cool, while also trying to keep their monthly electricity bills down.
Which brings us to a question sent into our newsroom. Ramon from Dallas asked this about installing solar panels on his home:
"Based on the sales pitch we get from the solar guys, they must be a huge savings on the electric bills. True or not?"
The answer? It's complicated. While it's true that if you install solar panels on your home you'll see savings on your monthly electricity bill, it's also true that it can be a big up-front investment.
Every home is different, and there are a lot of variables that help determine what the cost of solar panel installation will be. But solar power company SunRun told CBS News Texas that the average system size is a roughly seven to eight kilowatt system and costs between $20,000 to $25,000.
Those are big numbers, but there are financing and leasing options. And there is a federal solar tax credit that can cut the cost of the system by 30%.
As far as how much a homeowner can save, it depends on several things, but that number is between $1,000 to $1,500, according to a MarketWatch analysis.
Ed Hirs, an energy economist with the University of Houston, said that on a purely financial basis, it could take solar panels more than 20 years to pay for themselves.
"If it helps a homeowner get through periods of blackouts, if they can uncouple from the grid in the event of a hurricane, or tornadoes or bad weather, then obviously the rate of return is accelerated because of the avoided losses," Hirs said.
Amy Hear, SunRun's vice president of policy, said more people are interested in solar panel installation because of concerns over reliability.
"When the sun is shining...you're generating a lot of electricity and meeting all of your needs," Hear said. "But then you're also taking a load off literally from the grid."
To be self-reliant with solar panels, a homeowner would need to buy a battery for their home. And that could cost an extra $10,000.
