People may call Victoria, TX “The Crossroads”, but we all know that it’s much more than that. Victoria is an excellent, quiet place to live with a lot of space and access to some of Texas’ largest cities. But it’s also one of the top cities in the United States to make the transition to solar energy.
We’ve developed this guide to walk you through everything you need to know about going solar in Victoria. You want to know whether it’s a good idea to transition to solar energy and we decided to answer common questions to help you answer that question.
- How much will a solar system set me back? An analysis of solar panel price in Victoria.
- What will I gain by installing a solar system? This is a full economic breakdown of solar panel costs and savings.
- What are the benefits of installing solar panels beyond the energy savings?
- Why is Victoria TX a good place to install solar panels?
- How does residential solar work? What will the process entail?
- How can I get the best deal when dealing with solar installers in Victoria, Tx?
Let’s go through and answer them one by one.
What is the Cost of Solar?
The first thing anyone wants to know before investigating whether solar energy is right for their home is the actual cost of the entire project. We’ll start with an infographic detailing the cost breakdown of average sizes of solar systems:
For the sake of this breakdown we are going to use a 5kW system as our example system size. This is the average size of solar installations in the United States and should work for a home in the 1,250 – 2,000 square foot range.
As you can see in the infographic, the going rate for solar in Victoria, TX with a 5kW system is $14,300. But we need to factor in two different discounts here. The AEP solar rebate and the Federal Tax Credit. Let’s start with AEP’s rebate program.
American Electric Provider offers a pretty substantial $.50 per watt rebate on all residential solar energy installations. Since our example system is 5,000 watts, that is a whopping rebate and savings of $2,500. Let’s save that number for later.
Savings so far: $2,500
Now we apply the Federal Tax Credit, which is set to be 26% in 2021 and 2022. To figure out our cost savings through this program we simply multiply the raw cost ($14,300) by 26% to get $3,718.
Savings so far: $6,218
To get the full cost of the system we simply take the savings through the two programs and subtract that from the raw cost. The discounts add up to $6,218, which means we knock down the cost of solar to a very manageable $8,082.
This price can be paid up-front if you have the means, but if not there are many reasonable financing options, including options for $0 down and free installation through local contractors. If you’re interested in getting in touch with them, simply enter your zip code below and we will connect you with the most reputable solar companies in Victoria, TX.
Why Should I Install Solar Panels? A Financial Breakdown
Okay, so the price of the installation is $8,795, that’s certainly not a small investment! Why should you take the plunge? There are many reasons that people choose solar energy (and we’ll talk more about this in the next section), but principle among them is huge reductions in average energy bills.
Let’s do a quick analysis of how it works. The average price for electricity in Texas is 11.74 cents per kiloWatt hour (kWh). A 5 kiloWatt system will produce about 6,800 kWh per year. To calculate the savings, we just assume that you are reducing your energy usage through your local utility company by the amount of kWh that your new solar panels are producing.
If you are replacing 6,800 kWh per year of grid-based energy with free solar energy, then your savings would simply be 6,800 multiplied by the cost of 1 kWh. That means 6,800 X $.1174 which is about $800. That means your utility bill will be reduced by $800 each and every year.
Using this estimate, your solar panels would pay for themselves within almost exactly 10 years. From then on out, it’s pure profit. If we conservatively estimate that your solar panel setup will last 25 years, that means your investment will return $12,000 in pure energy savings after you’ve recouped your investment. That’s a return on investment of almost 150%, which is virtually unheard of for an essentially risk-free investment.
But there’s even more to the story than the pure financials. We will cover that in the next section.
What Are Other Benefits of Solar Energy?
We’ve already shown that solar energy is a great investment regardless of other benefits. But there are other benefits. They are:
- The cost of electricity is virtually guaranteed to keep rising, and the financial breakdown didn’t even account for that. The higher prices go, the more valuable your solar system becomes.
- You insulate yourself from fluctuating energy prices and can maintain independence from the energy grid. Your home will be far more suited to be “off-grid” and not rely on outside forces to keep it habitable.
- You’re helping the environment! Energy from utility companies uses polluting, limited resources and is one of the main reasons that climate change has become such a huge concern.
- You increase your home value by about 4%.
The Status of Solar: Victoria, TX
If you live in Victoria, TX, you have probably seen some of your neighbors begin to install solar panels on the roofs of their homes. And there’s a reason for that. Certain factors make Victoria a prime location to go solar. They are:
- An excellent climate for solar production — 4.5 sunlight hours per day with an incredible 202 sunny days per year.
- A utilities company, American Electric Provider (AEP), that offers an extensive solar incentives program that can dramatically increase savings and lower cost.
- A number of local, high quality solar installation companies in Victoria.
- Access to the Federal Solar Tax Credit program that offers a 22% rebate on your entire solar panel installation.
We mentioned in the beginning of this guide that Victoria, TX is a great place to take advantage of solar energy…and we meant it. Victoria’s climate is incredibly conducive to year-round solar energy production that can help your installation pay for itself in much fewer years than other areas of the country.
Not only that but due to the rise of solar, there are many quality solar installers in Victoria, TX. This makes it easy to weight multiple options, gather quotes, and find a service that can meet all of your needs. If you’re interested in getting completely free quotes from 1 or 2 local providers, simply enter your zip code below and we will personally connect you with them:
What Are the Steps Involved in a Solar Install?
The process is incredibly simple and straightforward. We’ve broken it down into a few quick steps:
- Decide whether solar is right for your home (we hope this guide has helped you with that).
- Begin information gathering to determine the size of system that is best for your home.
- Find solar companies that service Victoria and get quotes and a system estimate.
- Determine solar power financing options to help get a low interest rate that maintains the investment potential of your system.
- Begin the install! Most solar contractors can complete a residential project in 1 day, so you don’t have to worry about your home becoming a construction site.
- Enjoy the incredible benefits of solar energy!
How Can I Get the Lowest Estimate From Solar Companies In Victoria, TX?
The key is to talk to as many installers as you can. This isn’t always the most fun part of the process but we recommend it because you’ll want to get as many quotes as you can to find the best company for your needs. Customer service may not seem important but you want to find a company that doesn’t have pushy sales people and that will treat your home right.
You may also want to get approved for a solar loan through your installer, as these contractors often have connections with the manufacturers who offer loans through their network.
Here at Solar Action Alliance, we pride ourselves on these sort of guides that help homeowners like you decide whether solar panel installations are good choice. But we also review and form relationships with solar pros across the United States. We thoroughly vet their services and recommend only contractors that meet our high expectations for price and quality. If you’re interested in gaining access to this network of professional solar installers, simply enter your zip code below to get started:
