Can you REALLY save money with solar panels? The number of homes with systems installed rose 40% last year — but experts warn it could take more than a DECADE to break even on the $20,000 investment

They’ve been relentlessly promoted as an eco-friendly way to generate electricity and lower your energy bills, so it’s no wonder solar panels have exploded in popularity.

Last year, the number of residential installations shot up 40 percent from the previous year, according to figures from the Association of Solar Energy Industries (SEIA). About 500,000 homeowners installed solar panels in 2021 – a record 700,000 in 2022.

And by 2035, President Joe Biden wants 40 percent of the country’s electricity to be generated by solar energy as part of his radical green agenda.

But can they really save you money in the long run? Experts warn it could take more than a decade to cover the initial investment — and installation costs still remain unfeasibly high for most American households.

On average, homeowners pay about $20,000 to install a six-kilowatt system for a typical property, according to Kraig Edelman, CEO of the Illinois electric company. Nobleman.

Buyers can take advantage of a 30 percent federal solar energy tax credit (ITC), which reduces the average upfront price to $14,000. Some states also offer their own solar energy tax credits.

Edelman said users typically save $1,200 a year through solar compared to paying for energy the traditional way. It means it would take a homeowner a little over 11 years to pay off the initial cost.

Other experts offer similar projections. Sarah Miller, a marketing specialist at Solaric Corporation, said the panels save households about $1,500 a year — meaning it would take just over nine years to recoup the investment.

In addition, real estate platform Zillow estimates that homes with solar panels sell on average $15,000 more than homes without.

But Miller said such estimates cannot fully “capture the possibility that energy costs are going up in price and that there are multiple factors at play, such as each home’s power requirements, which can vary widely.”

Solar systems are made using photovoltaic (PV) panels that convert sunlight into electrical energy.

In the summer months, the process is quite simple: the sunlight directly generates electricity in a house.

If they generate more electricity than the owner uses, this extra electricity is effectively ‘stored’ in the form of household loans. These credits can be tapped when generation is low due to limited sunlight.

In addition, owners have the option of selling the power generated by their panels back to the energy grid. The U.S. power grid is a complex network of 7,300 power plants, 160,000 miles of power lines and distribution lines.

You will also need to request ‘interconnection’ from your local utility for this.

But to properly store excess electricity, owners are likely to need additional equipment such as solar batteries – which can double the overall installation cost, he said. CNET.

The White House has long considered solar energy an important part of its green agenda, with US Secretary of Energy Jennifer Granholm once calling them “the cheapest and fastest source of green energy.”

But the upfront installation cost has remained the biggest barrier for homes to adopt them.

Research from the Department of Energy and Lawrence Berkeley National Laboratory found that only 14 percent of residential solar households in the U.S. will have annual incomes of less than $50,000 by 2021.

The government has attempted to address this problem by launching numerous projects to make solar energy more accessible to lower-income families. This includes a ‘community solar’ project where several households can subscribe to one solar park.

Nevertheless, other problems remain with the widespread adoption of solar energy. For example, homeowners effectively facing a “zip code lottery” on how lucrative panels can be for their property due to the varying electricity prices in different states.

For example, in places where electricity bills are higher, it makes more sense to install solar panels, as the savings will be even greater – and they can make more money by selling their unused energy back to the grid.

Figures from the U.S. Energy Information Administration (EIA) show that Connecticut residents pay the most for energy, with households paying an average of $245.56 per month.

The second most expensive state is Hawaii – where households pay $229.29 per month – followed by New Hampshire with an average monthly bill of $194.78.

By comparison, Utah has the lowest average utility bill, with households expected to pay just $84.09 per month. It was followed by New Mexico, Colorado and Wyoming.

Prices often depend on how close each state is to energy resources. Some pay more if they have to transport fuels over long distances, for example.

And the issue is compounded by whether or not a state benefits from a deregulated market. A deregulated market — applied to 40 percent of states — allows several providers to supply electricity to consumers, fostering competition.

Among those who have taken the plunge and invested in solar panels is New York comedian Shaun Eli62.

Eli installed the technology in his four-bedroom home for $24,000. He also qualified for a $5,000 New York state credit and the 30 percent federal tax credit.

Since then, his electricity bill has been just $19 a month – covering the cost of the service.

Previously, he was billed anywhere from $150 to $500 a month for energy, depending on the time of year.

He now estimates that he will never have to pay electricity again, as he has already built up a credit of 3300 kWh.

He told Dailymail.com: ‘I never thought solar panels were so worth it until my neighbor got them.

‘But I love them. I think I’ll never have to pay for electricity again.’