Does Solar Actually Save You Money In Dallas-Fort Worth?

In the radiant heart of Texas, the Dallas-Fort Worth (DFW) area stands as a beacon for solar energy potential. The pressing question for many homeowners is whether solar power can indeed yield substantial savings. The affirmative answer is rooted in various financial strategies and local solar incentives.

The Economics of Solar Investment

Solar power investment is not just an ecological choice but a financially sound one in DFW. The region’s ample sunshine makes it an ideal candidate for solar energy production. When considering the transition to solar, the method of payment significantly impacts the cost savings. North Texas Solar always designs custom solar systems based on each homeowner’s desires and energy needs. With each hand-crafted solar panel system in Dallas Fort Worth that we install, our team maximizes the savings so homeowners can take control of their financial future when switching to solar. Transitioning to solar is not only economically and fiscally prudent, but it also gives homeowners greater power independence.

Cash Purchase: Maximizing Long-Term Benefits

Opting for a cash purchase of solar panels is the most cost-effective route. This option demands a higher initial investment but leads to the most considerable savings over time. With an average payback period of 5-8 years, homeowners can recuperate their investment through reduced utility bills. Post-payback, the electricity generated is essentially free, marking a significant financial win. Most homeowners that switch to solar will stay connected to the grid to optimize their investment’s payback period and energy credits through net metering. While remaining connected to the grid has a nominal monthly fee, it is worth it from a reliability standpoint.

Cash purchase of solar panel systems are the most cost effective way to switch to solar for 2 reasons:

1. Your investment goes 100% into the equipment and labor for the solar system; there is not additional cost to finance the purchase so you omit paying more in interest.
2. Your investment in going solar comes with a massive benefit: a 30% investment tax credit that is supported by the federal government. To learn more about federal investment tax credit, click here to read our article that explains how it works.

Financing Solar: Spreading the Cost

Financing solar panels is an attractive option for those who prefer not to pay the entire cost upfront. Although this method incurs more expense over the long term due to financing costs, it offers immediate savings on electricity bills. Additionally, it allows homeowners to take advantage of solar investment tax credits (ITC), reducing the net cost. Monthly payments on financed solar systems can often be offset by the savings on utility bills, making it a financially viable option.

Financing your solar system is also a great way to build instant equity into your home. Here are two important notes when switching to solar and financing the purchase:

1. Instead of your monthly utility bill payment going towards your energy company, every time you pay your monthly power bill, you are paying down your solar investment loan.
2. Because you own the solar panels and solar equipment on your home, your property value appreciates and you are eligible for the federal investment tax credit.

Solar Leasing: Immediate Savings Without Ownership

Leasing solar panels presents a no-upfront-cost way to enjoy solar savings. This model means lower monthly electricity bills versus what you would typically pay to your utility company. Although solar leasing comes without the tax benefits that come with the ownership of a solar system, solar leasing is a great way for homeowners to save quickly on their monthly power bill.

For individuals looking for immediate cost reduction without the commitment of purchasing, solar leasing is an excellent choice. North Texas Solar is now proudly offering solar leasing for Texas residents! If you want to learn more about switching to solar with $0 out-of-pocket, read our recent blog post about how solar leasing works.

The Long-Term View: Costs of Avoiding Solar

Over a 25-year horizon, the cost of not adopting solar in DFW can be substantial. On average, power bills rise about 5% every single year! In the Dallas Fort-Worth area alone, over the last decade, the cost of your traditional power bill has increased 27%. Avoiding the cost of long-term utility bills is one of the biggest reasons to switch to solar today. North Texas Solar’s article on the rising energy rates is a must read for financial-savvy homeowners looking to hedge their monthly power bills from rising.

With the region’s solar potential, staying with traditional energy sources is a missed opportunity for sustainable savings. For North Texas residents, the journey to solar energy is paved with options tailored to different financial circumstances and power independence goals. Local incentives and the supportive solar energy ecosystem in DFW make it an opportune time to consider making the switch.

Solar energy in Dallas-Fort Worth not only promises astounding financial savings but also offers a way for homeowners to become more power independent. Through cash purchases, financing, or leasing, homeowners can find a pathway that aligns with their economic and energy goals. The transition to solar in North Texas is not just a step towards sustainability but a wise financial decision, yielding benefits that extend well beyond the immediate horizon.