Renewable energy is growing faster than ever, and solar is doing the heavy lifting — making it easier (and cheaper) than ever to ditch high utility bills. In 2023 alone, 3.4 million Americans claimed tax credits for solar and home energy upgrades, saving over $8 billion collectively.
Thanks to a mix of federal and local incentives — many made possible through the Inflation Reduction Act — many U.S. homeowners can save more than $12,000 on the cost of solar panel installation. On average, U.S. households need an 11-kilowatt system to cover their electricity needs, which would run about $20,552 after tax credits, according to EnergySage.
It might sound like a big investment, but the long-term savings are even bigger. Most homeowners can expect to save $31,000 to over $100,000 on electricity costs over 25 years. Plus, once your system is paid off — usually in about seven years — your power is essentially free.
A decade ago, the cost of installing solar panels was $3.36 per watt, which was 31% higher than the current average price of $2.56 per watt, according to EnergySage. While solar prices did rise slightly over the past three years due to pandemic-related shortages, last year they returned to pre-pandemic levels, making it an ideal time to start the switch.
It's not just your wallet that benefits. Choosing cleaner, more efficient energy helps reduce pollution, slash energy waste, and protect your budget from utility rate hikes.
But these incentives may not last forever. While major changes to the IRA would require an act of Congress, some lawmakers — including President Trump — have said they want to eliminate these subsidies altogether. Acting now could lock in thousands in savings before any changes take place.
Other programs, like rebates for energy-efficient heat pumps or home weatherization upgrades, also fall under the IRA and offer similar win-win benefits for households and the planet.
If you're curious what solar might cost for your home, EnergySage's free tools can help you compare quotes and calculate your savings — it only takes a few minutes to see what's possible.
|
What's the biggest factor stopping you from investing in solar panels? Click your choice to see results and speak your mind. |
The cost 💰 
Join our free newsletter for easy tips to save more and waste less, and don't miss this cool list of easy ways to help yourself while helping the planet.
Cool Picks
