Tech
The Amazing Financial Benefits of Going Solar
Solar energy is slowly becoming a popular form of energy. Today, there’s enough solar energy to power more than 23.3 million homes. However, there will be enough to power many more homes in the near future.
So, are you considering going solar? Many homeowners are now beginning to evaluate this option because of the benefits it offers.
The primary advantage is the financial benefits of solar energy.
Keep reading to learn more about the amazing financial benefits you can experience by going solar.
How Solar Works
A solar energy system requires several components, including solar panels. However, some systems use mirrors instead of panels. In either case, the panels or mirrors collect sunlight and use its heat to create stored energy.
Solar services also have batteries, which store the energy for later use. These systems convert the heat from the sunlight into energy that powers a house. You can use this energy for all your home energy needs.
You typically place solar panels on your house, barn, or shed. However, some people also place the panels in their yards. It doesn’t matter where you put them as long as they have direct access to the sun.
Grouping them together is also better, as they collect more sunlight when you place them in clusters.
Your system also has a meter. This meter tracks how much solar energy your system produces and uses. With enough solar panels, your system might produce enough energy to provide all the power your home needs.
If not, you’ll still have access to electricity through your electric company.
However, you won’t spend much money on your electric bills after getting solar panels because you’ll only pay for the energy you get from the electric company.
Lower Utility Bills
So, people choose solar energy for their homes to lower their electric bills. If you have solar panels that create energy for your home, you won’t need as much electricity from your electric company.
The result is lower energy bills. Therefore, you can save money by purchasing panels from a solar company. You can learn more about this in Part 1 of this article.
You might cut your energy bills by 30% when installing solar panels. However, some people save more than this amount.
The average American household spends $115 per month on electricity costs without solar panels. But, of course, the amount you spend depends on your house size, location, and HVAC system.
The amount you save depends on your electricity usage, weather, and the number of solar panels. It also depends on the solar panel system you purchase.
If you spend the average amount per month as most people, your annual cost for electricity is around $1,380. If you can reduce your bills by 30%, you’ll only spend $966 per year on electricity costs.
As a result, you’ll save more than $400 per year. However, if you can save more than 30%, you could potentially save much more than this amount.
Improved Home Value
Solar energy is a green form of energy. After all, you require less electricity from your electric company when you make your own energy. As a result, you reduce the carbon footprint you create from your energy needs.
Because of this and other reasons, a house value increases with a solar panel system. You’ll find this out if you get an appraisal or decide to sell your home.
People realize the financial benefits of solar energy, so they’ll pay more for your house.
People also realize the costs of installing solar panels, which is another reason a house with solar energy sees an increased value.
Tax Credits
The federal government encourages homeowners to upgrade their energy systems to solar panels. As a result, they offer tax credits to homeowners.
The primary tax credit you can get is a 30% tax credit on your next tax return. This tax credit offers a write-off on your taxes for 30% of the system cost.
Therefore, you’ll get a credit of $6,000 on your taxes if you spend $20,000 on your system. If you spend $100,000 on a solar panel system, you get to write off $30,000.
This tax credit system has no limits or thresholds. Instead, you qualify for a 30% tax credit for any amount you spend on a solar panel system.
This credit will continue for the following years. However, the percentage decreases each year. Therefore, you’ll save more money on your taxes by installing a system this year.
When adding up the costs of installing solar at your home, you can include every expense. For example, you can include equipment costs, maintenance fees, and installation fees.
You might also qualify for a state tax credit, depending on your state. You can read the rules to see if your state offers a credit for solar energy.
Fast Return on Investment
Many people calculate the return on investment (ROI) when investing their money. An investment’s ROI tells you how long, in terms of years, it takes to recover the money you invested in something.
You can calculate the ROI of solar panels by calculating how much money you expect to save each year. Additionally, you’ll need to know the total system cost.
When you know this amount, you can divide the total system cost by this amount to see how long it will take to recoup your investment.
A solar panel investment generally has a fairly fast ROI, especially compared to other investment types.
Going Solar Pays Off
Going solar is a smart move if you want to save money on your energy bills. You might want to research your options before switching and speak to a solar energy company to learn more.
Are you interested in learning more about solar energy? If so, contact a company that offers solar energy options.
Did you enjoy this article? If so, feel free to browse through the rest of our site for more helpful information.
Kenneth is a proud native of sydney, born and raised there. However, he pursued his education abroad and studied in Australia. Kenneth has worked as a journalist for almost a decade, making valuable contributions to prominent publications such as Yahoo News and The Verge. Currently, he serves as a journalist for The Hear Up, where he focuses on covering climate and science news. You can reach Kenneth at [email protected].
