How to Maximize the Financial Return of Your Solar Power System
Many people who install solar power systems want to save money on their utility bills long-term while doing something positive for the environment. It’s important to know, however, that all solar panels aren’t created – and don’t perform – equally. Choosing the right solar panels for your home is one way you can maximize the financial return on your solar power investment. It’s also important to:
Take advantage of government grants and incentives for solar panels
Explore net metering options
Make the most of the solar power your system generates
From choosing the right brand of solar panels to pursuing solar incentives and cost-saving strategies, you can make informed choices that will lead to a solid return on your solar investment.
Step 1: Choose the Right Solar Panels
The solar panels you choose will affect your power generation long-term as well as the payback time of your system. High-quality solar panels should last for at least 25 years, but the amount of power they generate from the moment they are switched on through each year of their lifetime varies widely. The wattage, durability and performance guarantees you choose now can help determine how much you will save over the lifetime of the system.
Solar panel efficiency is measured as the Ratio of Solar Panel Power to Size (W/m2) at Standard Testing Conditions (STC). Universally, STC is measured as 1,000W/m2 of sunlight, a temperature of 25oC and an air mass of 1.5.1 High-efficiency panels provide the same amount of power with a smaller footprint than less efficient solar panels. This helps installers optimize roof space and design your solar array around shaded areas if necessary.
High-efficiency solar panels may be more expensive themselves, but they could save you money on variables ranging from the number of panels you’ll need to balance-of-system costs (the costs of additional equipment integrated into the system). Choosing a high-efficiency NeON® 2 or NeON® R panel from LG Solar provides additional savings advantages: our products are guaranteed to produce more of their labeled energy output from the first year through each of the 25-years of their warranties than many other solar panels on the market. Each added percentage of power generated per year means more solar energy for your home over time and more energy credits if you qualify for net metering. This all spells greater savings over the lifetime of your solar system.
Find out more about High-Efficiency Solar Panel Innovation.
Step 2: Take Advantage of Government Grants for Solar Panels
Federal solar power incentives and state or municipal programs, which vary depending on location, are available nationwide to help you recoup the upfront costs of your solar project. Taking advantage of incentive programs is one of the best ways to speed up the payback time of your system. Federal programs include a tax credit (the Federal ITC) of up to 30% of your system’s cost through the end of 2019.2 After that, the credit will begin a step-down process unless current legislative efforts to extend the ITC succeed.
Your LG PRO solar installer should be able to help you identify and pursue incentive programs that can help you save money on your solar system.
Related Content: Guide to Residential Solar Programs and Incentives.
Step 3: Explore Net Metering Options in Your Community
Net metering involves sending excess energy from your solar panels back to the grid. The utility company then pays you for this excess energy either with money or energy credits that can be used to purchase energy when your system isn't producing power (such as at night). Your LG PRO installer will know if net metering is available in your state and community.
Step 4: Make the Most of Your Solar Energy
Most solar systems generate the greatest amount of power in the middle of the day, when the sun shines brightest. Depending on the setup of your system, using household appliances during these peak generation times may help you save on your utility bills. But did you know your solar system can work for you even when the sun isn’t shining?
The LGE Energy Storage System stores excess power generated by your solar panels in one or more batteries. The power can then be discharged and used when your system isn’t generating, such as at night or during a power outage. An energy storage system is especially useful for financial savings if your utility charges Time-of-Use rates (meaning the utility charges more for power during peak usage hours, such as in the late afternoons or at night, when your solar panels aren’t generating power).
Connect with an LG PRO Installer Today
Working with a trusted LG PRO installer on your solar panel installation can help you make the right decisions for your home. LG PRO installers are companies located right in your community that are qualified to install and service LG solar panels. They can provide specific information on all aspects of your project, from solar system components to installation and financial incentives.