When homeowners first consider going solar, they want to know the long-term savings. Fortunately, plenty of benefits will help you save over time.
The most significant savings will come from lower utility bills. This is because solar panels can generate their power and send it back into the grid when they produce more electricity than they use.
Lower Utility Bills
One of the main long-term benefits of going solar is that your utility bills will be much lower. This is because a solar system will generate power, and any excess energy will be returned to your local utility company.
This can offset the cost of your utility bill entirely or at least significantly reduce it. The savings can be even more significant if you use a home battery system to store energy for future use.
While your electric bill is the biggest driver of how much you save, other factors can also impact your solar power investment. These include the location of your home and the electricity rates your local utility charges.
In some locations, utility rates may fluctuate based on seasonal demand patterns. For example, homes with higher electricity needs during the summer months may benefit more from solar installations as we estimate solar savings that allow them to offset high-cost marginal consumption at other times of the year.
Another way to lower your utility bills is to choose a time-of-use plan that aligns your energy usage around the peak and off-peak hours. These plans can benefit large homes that require a lot of energy at particular times of the day.
You can also reduce your energy bills by making small changes around your home that help you use less electricity. These changes can be as simple as replacing old lightbulbs or unplugging devices that aren’t in use.
You can also save money by purchasing your solar panels rather than renting them from a company. This can be an excellent option if you are eligible for incentives or have a good credit history.
Reduced Carbon Footprint
Solar panels produce electricity in a clean, renewable way that doesn’t contribute to greenhouse gas emissions. They also help reduce air pollution from fossil fuel-fired power plants and are an excellent alternative to traditional energy sources like coal and natural gas.
A solar panel’s carbon footprint is 20 times lower than the carbon output from coal-powered electricity. This is because solar systems only produce electricity when they are in use.
The production of solar panels has been made far more efficient over the past decade, and solar panel technology is constantly improving. This means that solar power is becoming more cost-effective, which lowers its carbon footprint even further.
Another way to decrease your carbon footprint is to reduce your energy consumption. This can be done by making intelligent choices in your everyday life, such as using reusable utensils, driving less, and reducing the number of times you throw away items that could have been reused.
It can also be helpful to network with other people who share your environmental concerns and are looking for ways to cut their carbon footprints. Sharing tips and working together to form local grassroots groups can make a difference in reducing your carbon footprint.
Going solar has many long-term savings, and you can expect a significant reduction in your monthly utility bills. These savings can be recouped in as little as three years and will continue to grow as your solar panels generate more electricity than you need.
Increased Home Value
Solar panels can add significant value to your home, especially if you plan on selling it within a few years. A recent study by Zillow found that homes with photovoltaic (PV) solar panels sell for an average of 4.1% more than similar homes without the technology installed.
Solar systems increase a home’s value by lowering energy bills and reducing carbon emissions. They’re also attractive to prospective buyers who want a greener home or to decrease their carbon footprint.
The amount of added value that a home receives from solar depends on several factors, including the size of the system, its output, and its age. Newer, larger systems typically have a higher value than older systems.
It’s also essential to have your solar system serviced and maintained to maximize its value. Outdated systems in poor condition may deter potential homebuyers, resulting in a lower sale price for your property.
Another factor that can affect the value of your home is its location.
Finally, it’s important to note that solar panels are becoming less expensive over time. With suitable financing packages, homeowners can recover their initial investment in several years. In addition, homeowners often recoup a portion of the total costs of going solar with tax credits and other incentives.
Tax Credits
The Federal Investment Tax Credit, or the ITC, is a nonrefundable credit for homeowners installing solar energy systems. This is a great way to save money on energy bills and reduce dependence on utility companies.
The amount of the ITC depends on the size of the system you’re installing. It’s typically 30 percent of the gross system cost, but some exceptions may allow you to get a more significant credit. The bigger the system, the more savings you’ll see.
The average homeowner who takes advantage of this credit saves about $6,150 in taxes over ten years. The ITC can be claimed by homeowners who own their solar systems or sign a power purchase agreement with a qualified installer.
Another option is to sell the surplus energy your solar system produces back to the grid through net metering. This can be a great way to make money and save even more on energy bills.
If you are still determining if this will be a practical option, consult a tax professional. They can help you determine eligibility and how much credit you can claim.
The federal government also offers several tax credits for solar systems. These include a 30% rebate for new home installations and a 20% credit for existing systems.
This tax incentive is scheduled to expire in 2022, so it’s a good idea to take advantage of it while it’s still available. However, it would help if you remembered that the IRS has a few rules about claiming this credit.
No Maintenance
Once your solar system is installed, it should continue functioning without additional work from you for many years. This includes the inverter, which is a critical component of most systems. However, your solar panels also need to be cleaned from dirt, dust, and leaves periodically, which is a simple task you can perform yourself or with the help of your local utility company.
Another maintenance-free benefit of going solar is eliminating the possibility of blackouts or voltage dips on your electric bill. This is because the solar energy produced by your home is often sent back to the grid, where it’s used to replenish the power supply when your house or business is not consuming it.
If you’re worried that going solar will cut you off from the power grid completely, consider purchasing a battery to store the excess electricity your panels produce in case of an outage. This means that your solar system won’t have to send that energy directly to the grid, which can threaten electric line workers trying to restore service.
In addition to the benefits of no maintenance, solar power can help lower your utility bills and reduce your reliance on fossil fuels. This helps to protect the environment and reduce your carbon footprint, which is becoming increasingly important as more people seek to live a sustainable lifestyle.
As consumers and businesses increasingly weigh environmental policy and sustainability in their decision-making, going solar is a great way to show your commitment to green and ethical values. It can also help you stand out as an employer of choice, making it easier to attract talented employees with the same values and look for an environmentally conscious workplace.
