When looking at the return on investment for solar panels, one may want to invest in using solar energy for their home. Click here to learn more!
The energy generated by solar panels in the United States has now reached the capacity needed to power 5.7 million homes. Not only that, installations have increased seventeen-fold since 2008.
Besides environmental benefits, the main reason for this is that the average solar panel return on investment is impressive. Keep reading to learn more about the financial advantages that are available.
- Much Lower Electric Bill
The average lifetime of a solar panel system is 25 years. Most systems get paid off within eight years, leaving 17 years to benefit from free electricity.
Dividing your saved energy costs by the initial investment in the system results in an average ROI of 10 to 30 percent. That kind of return on investment rivals stocks and bonds.
The higher your electric costs, the more you’ll save with solar energy. Even if your solar system doesn’t generate enough power to eliminate your bill in full, the reduction will still save you a ton of money.
- Security From Energy Rate Hikes
Electric energy is a volatile market. Residential energy rates go up an average of three percent each year. The continued surges are due to the scarcity of non-renewable resources like oil, gas, and coal. These are the three main fossil fuels used in electricity generation. With a home solar power installation, you’ll enjoy self-sufficiency in clean energy and become independent from traditional electrical providers. The switch to solar will protect your pocketbook from the increases.
- Energy Tax Credits
The federal government offers a tax credit to homeowners that install solar energy. This tax credit applies to the entire cost of your system:
- Permit Fees
- Other Miscellaneous Fees
Keep in mind that this solar tax credit expires in 2022.
Some states or counties have rebate and grant programs for solar panel investment and use. Check with your local and state governments to find out what’s available in your area.
- Net Metering
This is a program that allows you to sell solar power to utility companies for use in the grid. Check with your local utility company to find out if this option is available to you. Not every utility offers it and rules vary from company to company.
- Solar Renewable Energy Credits
If you live in one of the 30 states that take part in renewable portfolio standards (RPS) you can sell the solar renewable energy certificates that you earn for a financial return.
- Property Value Increase
If you’re wondering, “Do solar panels increase home value?” the answer is yes. Installing solar energy tends to increase property value because it’s considered an upgrade. Not only that, on average, they also sell faster.
The demand for homes equipped with solar energy will continue to increase as more and more buyers learn the benefits of it. Real estate agents selling such homes will help spread the word.
Solar Panel Return on Investment in a Nutshell
The total solar panel return on investment will vary depending on the location that you live in. There are many different types of programs available to help with installing one. Beyond these, you’ll increase the value of your home and save money on electricity when you switch to solar.
Make the next move in deciding if a solar panel investment is right for you by investigating which programs are available in your area.
A professional writer with over a decade of incessant writing skills. Her topics of interest and expertise range from health, nutrition and psychology.