Government decision slashes cost of home solar — see how much you could save

In September, the Federal Reserve cut interest rates for the first time in more than four years, making it cheaper to get solar panels at home. 

According to EnergySage, most people use loans to help pay for the cost of purchasing solar. With the high interest rates over the last few years, homeowners and business owners haven't been jumping to buy solar panels as much as they were before. 

However, the benchmark lending rate has decreased to 4.75-5.25%. That can bring you real savings when you invest in solar. For example, you would save about $3,000 on a $30,000 home solar panel system throughout the 20-year loan. 

"It may not sound like much, but this rate cut will save solar shoppers thousands of dollars in interest over the lifetime of their solar panels," EnergySage director of insights Spencer Fields said.  

EnergySage — which is like Expedia for solar panels — can also save you money on installation costs. For example, the company has a free-to-use online marketplace where you can choose the right deals in your area, just like you would search for flight deals. In addition, you can see how much money you can save thanks to rebates and tax incentives made possible by the Inflation Reduction Act.  

Once you have solar, the savings can begin. For instance, if your electric bill is $150, you can save $83,000 over three decades, according to EnergySage. On average, homeowners save between $28,000 and $120,000 on electricity bills over the lifetime of the solar panels.

What's more, solar energy can also reduce the need for dirty energy sources like gas and oil. The more homes that utilize solar power, the less people will rely on polluting fuels connected to millions of premature deaths every year. 

In an interview with The Cool Down, EnergySage president and COO Charlie Hadlow estimated that EnergySage's solar energy projects have prevented about 440,000 tons of carbon from entering the atmosphere annually.

For renters who aren't able to make the leap to a home solar panel system or join community solar, you can also do other things around your home to lower your utility bills. For example, wash your clothes with cold water and switch to LED lights. However, people who have purchased their own systems continue to share why they're happy with their decisions.

🗣️ If you were to install home solar panels, which of these factors would be your primary motivation?

🔘 Energy independence ⚡

🔘 Lower power bills 💰

🔘 Helping the planet 🌎

🔘 No chance I ever go solar 🚫

🗳️ Click your choice to see results and speak your mind

"I live in a rural area which has power outages in the winter," one person shared with The Cool Down. "Solar is great year round, and the battery functions as backup, prioritizing convenience over cost savings."

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