Can You Make Money with Solar Panels?
Solar panels are a great investment. They slash your electric bills, reduce your carbon footprint, and…make you money? If you’ve spent any amount of time researching solar panels online, you’ve probably seen ads claiming that you can sell your extra solar power to the electric company for cash.
Unfortunately, that isn’t exactly the case. Electric companies do buy back solar power, but they don’t pay cash for it.
Even so, residential solar panels have significant financial benefits. They might not make you money in the traditional sense, but they eliminate decades of electric bills and increase the value of your home.
Keep reading to learn more about the real value of rooftop solar in California.
Solar Panels Eliminate a Major Expense
The real way to “make” money with solar panels is by using them to eliminate your electric bill. We have some of the highest electricity rates in the country in California and for most of us, electricity is one of our biggest monthly expenses. As we continue to shift toward an all-electric future, it’s only going to get worse. Think about how much electricity you used 15 years ago compared to today. Now propel yourself 15 years into the future and think about how much you’ll be using then! Heat pumps, air conditioning, electric vehicles, induction cooking—it all adds up and can send your bills skyrocketing.
What’s even more troubling is that electricity rates are extremely volatile. Rates change all the time, and they almost never go down. At the beginning of this year, PG&E implemented a 13% rate hike and became the most expensive electricity provider in California!
All of this to say, generating your own electricity is a smart financial decision. Solar panels don’t completely eliminate your electric bill (there are fixed fees every PG&E customer has to pay) but they can eliminate your usage costs, which is the most expensive part of your bill. Those savings add up. Eventually, you’ll save enough money to cover the cost of your solar installation. After that, every dollar you save is money earned.
How long does it take for that to happen? There are a lot of factors that impact your payback period, but most California homeowners will break even on solar in about 10 years. Solar panels are warrantied for 25 years and often last longer than that, which means you’ll have around 15 years or more to make money off your investment after it’s paid for itself. When you go solar with Taylor Energy, you will have the fastest possible break even point and the highest return on your investment. We are meticulous about system sizing and panel positioning to ensure you’re able to maximize your power output and cover as much of your electricity usage with solar as physically possible.
Solar Panels Increase the Value of Your House
Another factor to consider when thinking about the financial benefits of solar is the value they add to your house. Energy efficiency and renewable energy are becoming increasingly important to homebuyers and upgrading your house with solar panels can boost its value—often by a substantial amount. According to research conducted by Zillow, houses with solar panels sell for 4.1% more than comparable houses without solar. Going solar now could pay off big if you decide to sell your house sometime in the future, especially with Taylor Energy as your solar installer. We install modern, sleek solar panel systems that are inconspicuous and won’t detract from your home’s curb appeal.
How Selling Solar Power to the Grid Actually Works
While you can’t sell solar power to the electric grid for cash, there is some truth to this myth. Net metering (or net billing as it’s now called in California) is a solar incentive that allows you to export the excess power your solar panels generate to the electric grid in exchange for credits on your account. You can use your credits to buy electricity from the grid when your solar panels are not producing power—at night or when it’s too cloudy. It’s more like trading power than selling it, but it still has value.
Start Saving with Solar
So, can you make money with solar panels on your house? Yes. You might not be able to turn them into a side hustle by selling power to the grid, but you will be putting money into your pocket every single month by eliminating your electricity costs. Taylor Energy installs custom solar energy systems that are designed to cover 100% of your electricity usage and maximize your financial payback. Reach out today to find out what your return on investment in solar might look like. We can help you decide whether solar is worth it for your home.
Ready to go solar? Call (707) 851-6393 or contact us for a free consultation and estimate.
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Rebates & Incentives
Save on your solar panel and solar battery installation with California solar incentives. Schedule a free solar consultation with Taylor Energy to learn more about the incentives you’re eligible for.
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