As electricity rates have increased over the years, homeowners who installed solar power are saving significant money. Additionally, some homes with solar power have even seen increased resale value.
While many know solar energy is good for the environment, only some understand why it is a significant financial investment. In fact, with compelling purchase and financing options available today, it is easier than ever to recoup your upfront costs through savings.
1. You’ll Save Money on Your Electric Bill
With government tax credits, purchase, and financing programs available for solar energy systems, it’s easier than ever to go solar and recoup the upfront costs of your design within just a few years. Many individuals are skeptical of the promise that a solar panel can provide and are currently debating how much money do solar panels save. By investing in solar panels, you can save a significant amount on your monthly electricity bills by using power generated by your solar panels, lowering or eliminating your utility bill in most cases.
Your savings can vary based on location, local electricity rates, and solar panel system size. Your current usage is also significant; you’ll want to ensure your system is large enough to meet your needs, especially during peak hours (when electricity demand is highest).
You can further reduce your electricity costs by reducing the use of energy-intensive appliances, using LED lighting, and turning off air conditioning units during peak hours. You can save on electricity costs by returning excess power to the grid through a meter reversal or storing it in a home battery backup system.
Many states offer various rebates, including the Federal Investment Tax Credit. Additionally, various local and state incentives are available, including property tax increase exemptions, which can further decrease your payback period. In addition, the fact that solar energy is a clean, carbon-free alternative to fossil fuels means you’ll be avoiding pollution-related health issues and increased exposure to volatile greenhouse gases.
2. You’ll Reduce Your Carbon Footprint
Regardless of where you live, the sun can provide clean, safe, and sustainable energy for your home. By generating your energy, you can reduce your dependence on the grid and take control of your electricity costs. As a result, you’ll contribute significantly to environmental preservation and a decrease in greenhouse gas emissions.
One of solar energy’s most well-known benefits is that it helps you leave less of a carbon imprint. This is so that no harmful greenhouse gases or air pollutants are produced during energy production, unlike when fossil fuels are burned.
By switching to solar power, you can also offset a significant amount of your household’s annual energy costs and contribute to preserving our planet. You can even add a solar battery backup system to your energy system. Doing this allows you to use solar energy all day and during blackouts.
Additionally, homes that install solar systems can take advantage of numerous incentives. For instance, the federal solar tax credit is a fantastic method to pay for the early costs of installation. Additionally, several jurisdictions provide rebates and other solar incentives that can reduce the overall cost of your system.
3. You’ll Increase Your Home’s Value
Going solar will provide you an advantage over your rivals in a burgeoning sector. Many homebuyers are willing to spend more for houses with solar energy systems. This is because it is possible to prevent future increases in electricity prices and because having a clean energy source nearby is desirable.
You can also qualify for state tax credits and other financial incentives. The initial cost of building a solar system can be significantly reduced thanks to these, which vary by state.
As a bonus, most solar homeowners see a high return on investment when it comes time to sell their homes. This is because a solar system pays for itself over and over again. This is an excellent ROI, especially compared to other investments like stocks.
Owning your solar system instead of leasing it will be even better for resale value. A buyer can assume the lease and all associated payments, saving you money in the long run.
In addition, most solar systems come with a labor and equipment warranty that can increase your home’s value. This makes it a fantastic choice if you plan to sell your home soon. Ultimately, getting an estimate from a qualified local installation is the best method to decide if solar energy can benefit your home.
4. You’ll Get a Great Return on Investment
With government tax credits and compelling purchase and lease financing options, going solar is now easier than ever. It’s possible to get a return on your investment in as little as 7-10 years and then enjoy decades of energy cost savings.
You’ll also save money on your electricity bills—which often account for a large percentage of your monthly expenses. Your electric bills will go down significantly, and in some cases, they may even disappear altogether.
In a power outage, you can still use electricity from the grid if you have a solar system with backup batteries. This will enable you to reduce your energy costs even more and ensure that your solar energy is utilized fully.
Unlike bond fund returns; the other benefit is that your solar panel ROI isn’t subject to taxes. This is because the “dividends” you receive from your solar energy system are cost savings, completely free of income taxes.
Understanding your solar payback period and return on investment is essential to decide if it’s the right option for your home.