Home solar systems can be costly, but there are plenty of ways to help you save money. First, the federal government offers a 26% federal tax credit to homeowners who invest in green energy infrastructure such as home solar systems. The solar panel tax credit expires at the start of 2022. And while the government may renew it as they have in the past, it may be worth making your purchase in 2021, so you don’t miss your chance to take advantage of this credit.
In addition to the federal tax credit available to Nevada homeowners, the state has a net metering program where homeowners can effectively re-sell the electricity they generate back to the grid.
Solar energy in Nevada may help lower your electric bills
One of the biggest advantages of installing solar panels on your home is the money you can save on your monthly electricity bill.
As of February 2021, the average electricity rate for Nevada homeowners was 11.84 cents per kilowatt-hour. The average Nevada electricity bill is about $100 per month. As a result, the average homeowner in Nevada has the potential for $1,200 in yearly savings on electricity.
When you invest in a home solar system, it’s important to consider the length of time it takes to recover your upfront investment. Let’s say you spend $15,000 on your solar panel setup. With $100 per month in savings, you could recover your initial investment in less than 13 years.
However, that figure is only accounting for your monthly electricity bill savings. That calculation doesn’t factor in your savings available from the federal tax credit, money made from net metering, or the increase in the value of your home. These benefits will speed up your financial bounce-back.