Installing rooftop solar panels on your home or business has become more popular around the country in the past few years, but especially in the sunny states of Texas and Florida, as utility prices continue to rise, and as residential home and commercial building owners look for more cost-effective ways to lower their energy costs. New housing construction in both these states, along with housing remodels and upgrades are also promoting the popularity of installing solar energy systems.
Many home and business owners are also searching for more sustainable ways to power homes or company buildings as an environmentally conscious approach to reducing greenhouse gases and minimizing carbon footprints. And that’s vitally important these days as Climate Change heats up the globe.
Luckily, with an average of 220 to 293 days of sunshine in Texas and about 240 days per year in Florida, solar power in these two states, powering your solar energy system is not an issue. We also serve the state of New Jersey, whose sunny days number around 203.
At West Bay Energy based in Pinellas Park, Florida, we can show you how to save money on your utility bills, “bank” electrical credits into your utility company account, and over time, start getting a return on your investment.
The state of Texas offers various tax exemptions and incentives for residential solar panels. And some of the larger Texas cities also offer local rebates and incentives. Solar panels in Texas are 100% exempt from property tax increases.
The state of Florida also offers 100% property tax exemptions for residential solar panels and additional energy storage devices. For homeowners, this means a new solar energy system will raise the value of your home without increasing the property taxes you pay.
And under Florida’s Solar and CHP Sales Tax Exemption plan, Floridians are exempt from sales and use tax on solar energy systems certified by the Florida Solar Energy Center, including “all components of such systems.” By implementing this plan, the state is helping to encourage consumers to consider investing in a solar panel energy system for their homes or company buildings. Federal grants, rebates, and tax credits are also available in both states, and some cities in Texas offer local incentives.
In New Jersey, residents are eligible for a 30% investment tax credit which is typically worth several thousand dollars against your federal income tax. New Jersey also offers a 100% sales tax and property tax exemptions.
Let’s Explore ROI
The average Return on Investment (ROI) for installing solar panels in Texas and Florida is about 12.5%, according to MoneyGeek.com. In New Jersey, the ROI is around 10%.
The payback schedule takes anywhere from five to 10 years, with the average hovering around 8 years.
However, if you sign up for “net metering” with your local electric company in Florida or New Jersey, our West Bay Energy team can connect your approved and renewable energy generating solar panels to your city or county’s electric grid upon installation so that you can sell electricity back to the power company or buy it if you haven’t stored enough.
Net-metering is a program instituted in many U.S. states that allows residential or commercial business customers who use a solar panel system to sell back any extra electricity to the power company. With net-metering, the extra, unused energy produced by your solar panels is credited back to you or saved as a credit in your utility “bank” account for later use.
This “bank” of electricity can be used if you haven’t stored enough during a storm when the sun is not shining, in gray winter weather, or it can be put against your account if you have used more than your usual amount of electricity during any given month. Unfortunately, Texas does not offer a net-metering program currently.
According to Quicken Loans, “you can calculate the solar panel ROI by dividing the profit earned on your investment by the cost of your investment. It’s worth calculating the cost of installing solar panels – your solar payback period helps you understand how much you’ll be able to make up for your initial solar energy investment.”
Quicken goes on to say: “Ultimately, installing solar panels is worth the investment – there are a few benefits of getting solar panels, including an ability to reduce your utility bills, increase your home value, allow you to take advantage of incentives, help you avoid future rate increases, reduce your environmental impact, fuel your home during power outages and stabilize the grid.”
At West Bay Energy, we happen to agree. The benefits gained from an expertly installed solar energy system far outweigh the cost. Add the availability of local and state incentives, state tax exemptions, and federal grants, rebates, and tax incentives, and what can you lose?
What is the cost of installing solar panels? It depends on several factors, but before incentives, the purchase and installation of a 5-kilowatt hour (kWh) solar panel energy system can cost between $11,500 and $15,000.
So, let’s do the math. A 5-kWh solar panel energy system, which on average consists of 12 solar panels, should generate an average of 20-kWh per day, that’s 600-kWh per30-day month. At that rate and calculating the average residential electricity rate in Florida of $.16 per kilowatt hour, a 5-kWh system should produce $1,152 worth of solar electricity every year.
In Texas, the kWh rate is even lower at $.14. This results in an even cheaper solar energy system installation in the Lone Star State. Both of those estimated state installation costs are a good start toward breaking even on your electric bills. After breakeven, it’s all ROI.
In New Jersey, the kWh rate is 8% higher than the national average at $.19 per kWh, so it will take longer to break even.
Expertise and Experience
At West Bay Energy, our team of solar panel and clean energy technology experts can help you achieve maximum energy production, while reducing your monthly energy bills and helping to protect our fragile environment. We specialize in all aspects of solar energy system design, including custom system design, solar panel installation, panel-to-roof installation, electric panel upgrades, customer support services, explanation of solar incentives, and more.
West Bay covers all your solar and electrical needs for more than half the state of Florida, from Collier County in southwest Florida to Broward County on the east coast and up to Marion County north of Tampa. And the entire states of Texas and New Jersey, with more states to come in the near future.
As the renewable energy industry has developed and evolved, so has the expert care, products, and services that we offer our customers. In fact, there has never been a better time to consider going solar. Renewable energy solutions are a positive investment that can save you money and contribute to saving our environment.
On average, one U.S. household emits about 7 metric tons of carbon pollution from electricity emissions every year.
According to the U.S. Environmental Protection Agency, by using a solar energy installation to generate your home’s electricity, your household emits 1 to 3 fewer metric tons of carbon emissions every year. That’s a big difference.
Bottom Line? You get tax incentives, grants, and rebates. You significantly reduce your monthly energy bills. You decrease your household’s carbon pollution. And you get an actual Return on Investment. What are you waiting for?
If you’re considering installing a solar energy system, give us a call for a no obligation quote. No matter what the size of your job, whether it’s your home or your business, we apply the highest quality of work to the design and installation of our solar panels to customers throughout our service areas.
We put our customers first, making sure you are backed by flexible financing, excellent warranties, and stellar customer service. At West Bay Electric, we strive to get maximum savings for our customers, while doing our part to improve the air we breathe.
You can count on West Bay Electric. Call us or contact us today to get started.
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