There are several factors that impact the cost of residential solar panels in Fairfield, New Jersey. Of course, solar panel prices are always one of the top concerns for a new installation. Depending on the home, location, roof size and more, there are no one size fits all solar panel system solutions. Therefore, local solar energy companies NJ can design a personalized quote for each property. As a homeowner in NJ, you should find a solar company willing to meet your home’s needs and requirements. Read on for the top factors that impact the cost of residential solar panels in Fairfield, NJ.
Solar Financing
First, solar financing can impact the cost of residential solar panels. There are various solar financing options, including solar loans or solar leases, to assist with the costs of solar panel system. Consider taking out a solar loan. A lender will provide the funds for your solar panel installation. Of course, you can apply for low interest rate loans. Or, you could invest in a solar lease, also known as a power purchase agreement. You don’t pay anything for the system installation, but the solar company owns the panels. To access the panels and their energy, you would pay the company a fee every month. Certainly, solar financing will impact the cost of your residential solar panels.
Energy Incentives
Secondly, energy incentives impact residential solar panel costs in Fairfield, New Jersey. These energy incentives make solar panel systems more affordable through tax credits, tax liability exemption and money saving benefits. For example, the Federal Solar Investment Tax Credit (ITC) provides a 26% price reduction for both residential and commercial solar panels NJ systems. Plus, it can be claimed against investors and their tax liabilities. Plus, there is no cap on the claim amount. Additionally, you could become exempt from property taxes by installing solar PV systems on your property. More so, there are Sales Tax incentives that reduce the upfront costs of the systems. These incentives offer exemption from NJ’s Sales and Use Tax when purchasing a solar energy system. Of course, energy incentives will impact the cost of your residential solar panels.
System Size
Of course, system size influences the cost of residential solar panels. Usually, larger systems offer lower costs per watt because panels can be bought at a “bulk price”. Yet, the larger system will have a higher overall cost since they have more individual parts. For example, you can purchase a 4kW system. The average cost per watt can range from $2.90-$3.10. If you went with a larger system such as 10kW, you could potentially pay less than $2.70 per watt. Surely, the size of your system will depend on the size of your house or residence. Certainly, system size is going to affect the cost of residential solar panels.
Maintenance Costs
Next, maintenance costs influence the amount you pay for solar panel home systems NJ. Luckily, these systems are long-term investments that require minimal maintenance. However, you should plan an annual panel inspection and cleaning to keep them in great shape. As a result, you can continue to rake in the benefits with reduced complications. On average, maintenance fees can cost anywhere from $300 to $700. Certainly, fees will also depend on your system size. For example, cleaning and inspecting a 10-panel 2kW system may have some nominal maintenance costs. Meanwhile, larger systems such as a 20-panel 3kW system may cost more. Surely, maintenance costs are going to impact the cost for residential solar panels in Fairfield, NJ.
Payback Period
Certainly, payback periods affect the cost of residential solar panels over time. Though the cost of investing in solar panels may seem high, you will make back your money pretty quickly. In New Jersey, it takes on average, about 5 years of using your solar panel system, to earn your money back. Finances will come from saving money on your electricity bill or from profits of producing your own energy. In fact, the energy generated from the panels is mostly free, besides the utility connection fees. Additionally, these solar systems have a 20 to 30 year warranty. As a result, you earn back more than you initially spent. More so, the NJ electricity rates are high, which could save you more than $75,000 during the panels 20 year life span. Of course, the payback period will impact the cost of residential solar panels.
There are numerous factors that affect the cost of residential solar panels in Fairfield, New Jersey. First, solar financing impacts costs since these options can lower the amount you pay upfront. Secondly, energy incentives provide system owners with tax exemption and money saving benefits that could influence the panel costs. Of course, system size will affect the price of the solar panels since a larger system requires more installation which increases the price. Next, maintenance costs influence panel costs since you need to set aside money annually to get the system inspected and cleaned. Finally, payback periods can impact the cost as you can see a return on your money over time. These are the top factors that impact the cost of residential solar panels in Fairfield, NJ.
