The financial viability of going solar

Reporter: Emma Heaton Writer: Paul Dolan
Solar panels being installed. (CREDIT: WINK News)

The United States secretary of energy said Americans that are being crushed by inflation can lower costs by installing solar panels at a discount under the Inflation Reduction Act.

The law says Americans are eligible for a 30% discount on solar panel installation under the Inflation Reduction Act. But, that doesn’t necessarily mean that solar panels are affordable for most people.

When President Biden signed the Inflation Reduction Act he promised the American people to lower the costs of clean energy.

“We’re taking the most aggressive action to confront climate crisis ever $368,000,000,000,” President Biden said.

Just a few days later, energy secretary Jennifer Granholm went further on live television for the world to hear. Granholm said Americans being crushed by inflation can lower their energy costs by installing solar panels at a 30% discount.

For example, if the solar panel installation costs $20,000 then the discount would be $6,000 and you’d owe $14,000.

“You don’t have to pay for anything if you want heat pumps, insulation, new windows, that is covered,” Granholm said.

WINK News went on to verify that part of the deal.

First, what the President and the energy secretary didn’t say is that in most cases you need to start with a new roof. And in Florida, that hikes the price up more than $7,000 on average, on average.

Second, there’s the solar panel installation, and the average homeowner can expect to pay anywhere from $15,000 to $50,000.

“There are significant incentives in this bill, which is great to reduce people’s energy costs on a monthly basis,” Granholm said.

The act does include rebates and tax credits that will make the installation “much more affordable”, but the truth is there are still more expenses you have to pay retail for, like insurance.

And a backup battery, which is a must in case of an emergency, for the solar panels that run at least $5,000.

Most solar companies recommend the panels be replaced every 20 years. If you plan on staying in your home that long, it could be good for you. If not, you may not get your money’s worth.

So, are solar panels a good deal? Well, if you need a loan for the panels, it may be years before you realize savings on your electric bill.

And one last reminder, before you take out a loan, like any legal document, make sure you speak to a lawyer and tax specialist to make sure going solar makes financial sense.

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