As the world tries to evolve into a more energy-efficient and environment-friendly place, more people are beginning to see the enormous benefits of investing in solar energy as both a primary and secondary energy source.
Solar energy is free and abundant, requiring only a simple solar panel installation to get your house up and running, unlike the more conventional fossil fuels, which are expensive with unstable costs. So what are solar panels? And how can you use them in your homes as an alternative power source to benefit you? Keep on reading to find out
Four Reasons to Install Solar Panels on Your Home
1. Federal tax credit and rebates
According to the law passed by the government, your solar panels technically pay you because, at first, you get a 30% payback of total system costs from both equipment and installation. This will be labeled as a ‘federal income tax credit’ when you file your taxes. This means, on average, you save about $7,500 on a $25,000 worth of solar system, a worthwhile investment. To make the deal sweeter, in addition to your tax credit, the state and local solar rebates for homeowners, SRECs (Solar Renewable Energy Credits), and total costs will be cut in half. SRECs are generated throughout a year and can be sold to utility companies, thus generating a substantial return on your initial investment.
Every level of local, state, and federal government supports the adjustment towards clean, renewable, and efficient solar power, shown by the beneficial tax incentives and financial assistance programs they offer.
2. Save a fortune on utility bills
Among the major reasons why homeowners choose home solar systems is usually due to the high cost of their monthly utility bills. When you install a home solar system, you will witness a significant reduction in your energy consumption costs as you rely less on the power provided by the grid, which can see huge spikes at any instant for a variety of reasons.
To maximize this benefit of home solar systems, you just have to install the appropriate size of solar cells and ensure to mount them at the designated locations in/on your house. Unlike popular belief, the amount of electricity that your solar panels can generate is considerably large. Depending on the number and quality of the system, it could easily be enough to power your entire home.
If you can overlook the upfront cost of acquiring and installing a home solar system, you will be overjoyed and surprised at the savings you will make in the long term from your initial investment.
3. Potential increase in home value
In addition to saving on your bills and making money from your solar system investment, there is a huge chance that the value of your property sees an increase in the real estate marketplace. Homeowners usually improve the value of their homes with improvements and repairs, and installing a home solar system is one of the best and stress-free ways to make a considerable investment in your property.
Although you may not be considering selling your house anytime soon, it is never too late or too early to begin thinking ahead, and installing solar panels in your house significantly increases the resale value of your home, making it a smart investment option that every homeowner should weigh while looking to improve both their lifestyle and the value of their property.
4. No money down financing is an option
Everyone loves a zero-down purchase, we pay for it, but we don’t pay for it, the perfect combination. It’ll serve you well to know that there is an option to buy a home solar system with no upfront payments, where you finance your solar lease or loan with monthly investments only, helping homeowners to enjoy the benefits of solar energy while utilizing a convenient payment system.
The two types of zero-down financing are solar lease and solar loan, the only difference being what type of acquisition you intend to make. With solar loans, you buy the system and cut the cost into smaller chunks of monthly payments. In contrast, the solar lease option involves a solar company lending you their home solar system, and you pay a monthly or yearly premium for continued use. In this option, you do not own the solar system.
Zero-down financing is a great way for skeptical homeowners to try out home solar systems for some time to find out if it is a good fit or not (it usually is).
Frequently Asked Questions
• How much does a solar panel cost?
The prices have been on a steady downward trend over the years due to the allowances made by the government to encourage the use. However, the total cost will depend on how much KW of power you can generate. According to consumer reports after-solar tax credits, the cost for a solar panel system in a house of average size in the US ranges from $11,000 to $15,000 in 2021.
• Can a house run solely on solar power?
In practicality, it isn’t usually the case because solar energy originated from the sun, which means it only works when the sun is out. Thus, during cloudy days or at nighttime, they don’t generate electricity. Although battery solutions provide power during these periods, they are relatively expensive, so they should be used as an alternative power source to the power grid instead unless you have the means, which most people don’t.
• Do Solar panels save you money?
This is largely dependent on where you live, but the solar panels may pay for themselves and more over time. That’s because your spending on utility bills is considerably reduced, and if your area utilizes net metering, your bills come down even lower.
Home solar systems are the future, a great all-around investment for homeowners looking to make lasting improvements in their property. With proper maintenance, they last for decades while providing you and your household an alternative power source, increasing your home’s value and bringing in passive income. If the tax credit and savings on utility bills tickle your fancy, but you’re still standing on the fence, you can always try zero-down loans at no risk to you.