The idea of installing solar panels on your home is interesting. Come to think of how much money you will be able to save on your electricity bills once it becomes operable, and you will definitely say yes to this project. It even adds value to your home while also reducing greenhouse gas emissions. With all these benefits from installing solar power systems, you will also want to know how it will benefit you if you are already a senior citizen living in America.
What to Know about Older Americans
Before scrutinizing the savings you can get from using a solar panel on your home if you are a senior citizen, let us know first about the older American demographics. People who are 55 and older make up more than one-fourth of the entire American population. About 80% of these individuals also have their own homes. It has to be noted too that there are about 87% of this population wanting to live in their own homes after retirement.
How Much Do Old Americans Spend on Electricity?
When it comes to electricity expenditure, these folks spend about $1,500 annually. This figure increases by about 3.5% every year. The increase represents the annual average increase for electricity prices in the country. Given these figures, a senior citizen, currently at age 60, and wanting to stay in their home for another 25 years will be spending $58,000 on electricity for that span of time.
Solar Energy and Older Americans
On the average, a senior citizen consumes about 9,850 kWh annually, or $0.13 per kWh for the $1,500 that they spend yearly on electric bills. That huge electricity bill can be eliminated by the use of a solar panel. All you need is a solar array which is capable of producing seven kilowatts. This will cost you about $25,000 initially without considering incentives.
The entire project will involve the installation of 20 solar panels with a power of 350 watt each. This needs to be installed on a roof with a 430 square feet of space. As long as you have the finances and the space to install one, you will be able to offset your electricity usage for the next 25 to 30 years.
What’s the Verdict?
Like other homeowners, your concern as a senior citizen in installing a solar panel in your home is the cost that goes with it. Before you even totally back out from the opportunity, you should remember that you can actually reduce the cost of installing such a system into your home. You can avail of incentives via federal solar tax credit. This allows you to deduct 30% of the cost of installation of solar panel systems from your federal tax in the coming year. This means a total of $7,500 deduction from the $25,000 initial cost.
In case your tax is not enough to cover the entire deduction for the next taxable year, you can apply the balance for your taxes in the coming years as covered by the 5-year tax credit extension from 2017 to 2022. With or without the tax credit, you will still save a lot from the endeavor considering that the $58,000 electricity bill for 25 years will exceed the investment you will make for a $25,000 solar power system.
Book an appointment now with a solar installer and learn more about the perks of using solar panels in your home even if you are a senior citizen.