Installing solar panels is going to lower your energy bills and reduce your carbon footprint, but this renovation can be a major investment. That is why you should spend some time researching all of your options before you sign any paperwork or begin the installation process.

Look at Incentives

Many homeowners don’t realize that this upgrade could have a huge impact on their taxes. With the federal solar tax credit, you can deduct 30 percent of the installation costs from your federal taxes. Depending on where you live, your state or county might offer a tax credit or incentive package as well. You can also contact your electric company to see if they have an energy buyback plan for customers who have solar panels.

Don’t Go Straight to the Cheapest Contractor

It might be tempting to go with the cheapest solar contractor you can find, but that could end up costing you quite a bit of money in the long run. Solar power installation is a very complicated process, and you want to be absolutely sure that the job gets done correctly. Improperly installed solar panels could lead to severe structural damage during a storm, and your insurance might not cover that damage. Working with a reputable and experienced solar contractor is going to give you peace of mind in the coming years.

Consider Your Financing Options

There are many different ways to pay for new solar panels. Some solar power companies have financing packages, but you probably won’t own your solar panels for 15 or 20 years if you choose that option. You can also head to a specialty lender who offers custom solar power loans. With that financing option, you will be the sole owner of your solar power system. Depending on how long you have owned your home, taking out a home equity loan might be a good choice as well.

Schedule Consultations

The efficiency of your solar power system is going to depend on a wide variety of factors, and that is why you should schedule multiple consultations with different companies. During those consultations, the contractors are going to figure out where the solar panels should be placed and how many panels you need. They can also look at your energy bills and tell you exactly how much money you are going to save every month.

In addition to these four tips, you should also make sure that electricity isn’t being wasted inside your home. Old light bulbs and damaged appliances are incredibly inefficient, and your solar panels won’t save you as much money if you don’t address those issues first.