A growing number of homeowners are investing heavily in solar power these days. The residential market for solar energy is growing at a stunning rate of 16% a year.
Solar power involves converting energy from sunlight into electricity using solar panels. You can switch your home to solar power to access amazing advantages and savings.
There are a lot of great benefits of solar energy, which is why it is growing especially quickly in countries like Sweden. Here are 6 financial benefits of solar-powered homes:
1. Saves Money
As we previously wrote, you can easily save money by creating a solar-powered home. This is actually one of the most appealing things about solar energy for many people.
Solar power offers massive monthly savings by effectively reducing your electric bill using a process called net metering. Net metering is a billing system used to credit owners of solar energy systems for the electricity they contribute to the grid. Essentially, a solar power system continually creates electricity during daylight, usually causing a surplus of energy, leading to your unused, extra electricity being delivered to the power grid.
The electricity you add to the grid is paid for by the utility company appearing as solar credits on your monthly electric bill, which is subtracted from your total expenses.
Solar power harnesses free energy from the sun, meaning your generated electricity costs you next to nothing. The more electricity you contribute, the more solar credits you earn, significantly reducing your expenses. On average, you can save between $10,000 and $30,000 over the lifetime of your solar power system.
2. Receives Tax Incentives
Receive amazing tax incentives by installing a solar power system.
Installation costs for solar power systems depend on your system’s size, generally costing between $15,000 to $25,000 for systems covering a home’s entire energy usage. Determine your system’s cost and size by calculating how many kilowatt-hours of power is needed for powering your home.
Installing a solar power system is essential for accessing tax benefits. Primarily, solar power system owners receive the investment tax credit (ITC), otherwise known as the federal solar tax credit. The ITC allows you to deduct about 26% of your installation costs from your federal taxes, minimizing your upfront expenses. Other tax incentives and rebates exist depending on your location, so research to discover other financial savings you qualify for.
3. Provides Long-Term Value
Solar power systems provide long-term value for homeowners.
If you’re spending thousands of dollars on a system to power your entire home, you need to understand how long your solar panels will last. Solar power systems are expected to last an average of 25 to 30 years.
Fortunately, solar power systems can operate much longer based on your system’s degradation rate. Generally, solar panels have a yearly average degradation rate of 0.5%, meaning your system still operates at about 88% capacity after your 25-year warranty.
4. Increases Property Value
Increase your home’s value by adding a solar power system to your property.
Solar power systems are viewed as valuable upgrades by home buyers, similar to an updated kitchen. Occasionally, home buyers have been willing to pay a premium of $15,000 for homes featuring solar power systems. Usually, solar power systems are estimated to increase a home’s value by $20 for every $1 reduction in yearly utility bills, successfully improving your home’s worth.
5. Guarantees a Cleaner Environment
Solar power systems promote and guarantee a cleaner environment.
Traditional forms of electricity, specifically fossil fuels, emit carbon dioxide and other harmful gases into the atmosphere, leading to greater pollution and global warming. Also, fossil fuels, such as coal or natural gas, are finite sources, meaning the supply gradually diminishes until it eventually runs out.
Solar power offers a greener alternative for effectively reducing your home’s carbon footprint. Solar power is a naturally replenished and inexhaustible resource produced without releasing pollutants to slow climate change. The government spends millions of dollars to fight against climate change every year. Switch your home to solar power to drastically improve the environment and guarantee a better future.
6. Offers Inexpensive Alternatives
Create a solar-powered home by reviewing inexpensive alternatives.
Community solar is an excellent alternative for receiving solar power. Community solar involves a third party installing numerous solar panels in a certain area. Solar power generated is delivered to the grid and distributed to the community by the utility company. Members of the community are able to access solar power by simply subscribing to the service. Benefits of choosing community solar include:
- Guaranteed 10% savings on monthly electric bills
- Bypassing installation and upfront costs
- Improving the environment
- Easy enrollment process
Join a community solar project by searching for shared solar opportunities near you.