HOW SOLAR CAN BENEFIT YOUR PERSONAL FINANCES
The utility of solar power is quickly gaining popularity among millions of homeowners across America. Every year more people are taking the revolutionary plunge and turning to solar energy, owing to the numerous benefits that the installation offers them. Despite the fact that the overall installation of a solar panel system can be a big investment, most people are willing to embrace the technology due to the sizeable return on investment (ROI) they obtain from it. Apart from its obvious environmental benefits, solar energy can be highly economical and provide you several advantages for your personal finances. Let us take a look at the financial benefits of solar power.
Example: Energy bill savings over 20 years Source: Sagebrushsolar.com
One major benefit of opting for the solar energy technology is the fact that it significantly aids in reducing your dependence on the outside energy companies for meeting your monthly power demands. In other words, by producing your own power through solar panel installed at your home,you can make enormous savings on your monthly electricity bills. This is a huge financial benefit for homeowners. The solar power is a free source of energy and all one needs to invest in is the actual panel setup at their location of their home or business. In addition, there are several solar financing and leasing companies all over the country which provide adequate financing for solar panel installations. This implies that the even those individuals who cannot afford to make a large one time investment in actually purchasing a solar panel, can also reap its benefits without having to burn a hole in their pockets.
Owing to the frequently fluctuating electricity costs, several homeowners have to bear the brunt of increasing monthly expenditure on their energy bills. However, the Power Purchase Agreement or the PPA ensures that the solar energy rates stay fixed and do not affect the consumers with frequent fluctuations. Power generated through solar panels is free for usage and provides an economical alternative to homeowners who install them. In addition to this, the power generated in excess of what a homeowner requires can be sold off to the other utility firms in exchange for money.
THE MONETARY WORTH OF YOUR HOME
Installing a solar panel can actually have a huge impact on the resale value and net worth of your home. If you compare the installation of a solar panel on the roof of your home with other conventional home renovations, the return of investment on the former is significantly higher than that of the latter. To put it more clearly, an individual can enjoy up to 4% more return on what he spent on installing the solar panel. A recent study shows that a host-owned solar panel system can improve a home’s re-sale value by 3-4%, which equates to a high return on the original investment. It is important to note that this increase only applies to owned solar panels systems, not leased solar panels.
TAX BENEFITS AND INCENTIVES
Owing to its tremendous environmental benefits, the solar power is receiving enormous support from the government in a bid to promote and encourage its usage across the country. Several state government units provide tax benefits and incentives to individuals who have installed solar panels in their homes. Specifically the state of California offers a 10% tax credit on all installed solar systems. This is a hefty financial benefit of choosing to own your solar panels over leasing. In order to make the solar power available to homeowners of different economic statuses, there are several third party firms that provide leasing and financing for installation of solar panels as well.
Installing a solar panel will not only take care of your monthly power expenditure, but also enormously contribute to the conservation and cleanliness of the environment that surrounds you. With a low as a five year payback, a 10% tax credit, an increase on the value of your home or business, and more solar panels are a great investment in your financial future. If you or anyone you know is interested in taking advantage of the finical benefits of solar power please contact us or set up a free, no-obligation solar energy evaluation.