In the last ten years, the cost of installing a solar panel system has fallen by more than 70%.
The cost of electricity is continuously on the rise. Not only that but why the climbing power prices exist is a question consumers can’t seem to find an answer for. As such, solar power has steadily risen in popularity as an alternative form of powering the home that’s cost-effective, sustainable, and predictable.
Keep reading for five compelling reasons why you should consider purchasing a solar power system for your property.
1. Lower Energy Costs
One of the most visceral reasons people reach out to a solar company is the potential cost savings they can make. Solar panels help you generate power at a cheaper rate than being connected to the grid.
Since the cost of grid electricity is continuously rising, the larger your portion of power consumption coming from solar, the lower you drive your prices. That’s especially true if the grid power you consume is during peak periods, which comes at a higher cost when you can store and use solar-generated power instead.
With that said, it’s vital to realize that you’ll only reap these cost savings if you live in the same house for an extended period. The cost-benefit of solar energy is enhanced when you distribute it over a more extended period.
2. Selling Excess Power to the Grid
So, what happens when you generate more solar power than you actually need? You can sell it back to the grid, and that makes investing in solar panels quite attractive.
Net metering, also known as net energy metering, is the most popular program through which you can sell excess power you generate from solar to the grid. When you sell extra power to the grid, you’ll receive credits. At those times when your solar panels are underproducing power, you can pull power from the grid, and the credits you received will offset the cost.
Most homes tend to produce more electricity from solar in the summer and pull more grid electricity in the winter. With the right system design, you can save a significant amount over your solar panel’s lifetime.
3. Tax Credits
What if someone told you that installing a solar system in your home can earn you tax credits? Would it entice you to try it out? The federal solar tax credit, also known as the investment tax credit, does precisely that.
A tax credit is a dollar for dollar deduction on your tax liability. Therefore, if you gain $X in tax credits, you can deduct $X from your pending tax bill.
In 2020, the percentage you can deduct for residential solar systems holds at 26%. In 2021, the rate will drop to 22% before it expires. Only commercial solar systems will get a 10% deduction in tax credits as it stands right now.
With the federal solar tax credit, you get to deduct a percentage of your federal taxes’ total solar system installation costs. There’s no cap to the amount you can deduct under this tax credit, and it applies to both residential and commercial solar systems.
If you don’t have enough tax liability to exhaust the credit, you can ‘rollover’ the credit into future years as long as the tax credit is in effect. However, the federal solar tax credit only applies to a solar system you owe, making solar leasing not as good an idea.
4. Better Home Resale Value
In today’s market, homes with solar systems installed are selling at a premium over those without.
The primary benefit that potential homeowners see when a house has solar panels installed is the savings they’ll make over time. The second most influential factor that makes homes equipped with a solar system valuable is control.
Utility companies keep increasing the price of grid electricity in an opaque manner. Inevitably, these costs are passed down to you as their consumer. More and more homeowners want to have greater control over their power and its costs, hence opting for solar panel enabled houses.
The factors that affect how much value a solar power system adds to a house include the geographical location, the frequency of power outages, and the local price of power. The age of the solar system in place also plays a part in how valuable potential buyers deem the house to be.
5. User-Friendly Maintenance
For all its benefits, you’d expect a solar power system would need elaborate maintenance. On the contrary, a solar panel system only requires regular cleaning. As long as you schedule several cleaning sessions in a year, you should be fine.
Even if you feel the need to have the cleaning done professionally, you can hire a service provider for a reasonable price a few times a year. Given that a solar power system will last you 20 to 25 years, it’s a low-intensity maintenance routine for a long-term benefit.
In addition, a solar panel system has no moving parts. The only component you’ll need to replace every five to 10 years is the inverter as it continually runs to convert solar power to heat and electricity. The cables will also need looking after, but that’s over long intervals as well.
Factors to Consider When Installing a Solar Panel System
Your historical and projected energy consumption is vital as it directs you on the particular system output you’ll require.
For example, an energy-intensive young family would find more value in installing a solar system that generates 5kW at a minimum and can top out at 25kW depending on the geographical location.
How you use power is another crucial issue to weigh. Moreover, where you live also factors into how much you’ll spend on the solar system. You’ll need a different set up if you live in a more sunny area than if you reside where it’s less sunny throughout the year.
Take Charge of Your Power Consumption
Dissatisfaction with increasingly expensive grid electricity over the years has spurred the popularity of solar power. Installing a solar panel system is now cheaper than ever, and as long as you understand your needs, you’ll put the correct solar system in place and benefit in the long run.
Keeping your power bills cost-efficient and predictable is part of running a household. Our website is dedicated to empowering large families. Check out more of our articles for travel, lifestyle, fitness, food and adventure tips, and ideas to help make lasting memories with your loved ones.