Over the past decade, solar installations have grown at an average annual rate of 42%. This increase is thanks to the declining costs of solar, robust financial incentives, and increased demand for clean energy.
If you are considering solar panel installation, now is the perfect time to do so. The financial benefits can be drastic. Let’s take a look at the many ways going solar is financially beneficial.
Lower Energy Costs
One of the biggest financial benefits of solar panel installation is how it can lower your energy bills. If you produce power through solar panels, you don’t need to buy that energy through a utility provider. Your energy cost will be lower than through your utility company.
You also don’t need to worry about future rate increases. Since your system is already paid for, rate changes don’t affect what you pay for energy. If your system produces more energy than you need, you can also sell the excess solar energy back to the grid.
Renewable Energy Credits
One of the unique financial benefits of solar panel installation is that you can actually make money from it. For each 1,000 kWh of power produced by your system, you will earn a Renewable Energy Credit.
You can accumulate these credits, then sell them on your state’s market. The value changes based on supply and demand.
Federal Solar Tax Credit
The federal government offers a tax credit to cover a certain percentage of the cost of a solar system. The amount of the credit varies by year, but for 2022, it is 26%. Unless it is renewed, the credit will expire starting in 2024.
This can offer significant savings on your tax bill as a tax credit directly lowers your taxable income.
State Rebates
Some states also offer rebates if you install solar panels. Some of these rebates are offered through state-run programs, while others are offered through local utility companies. In addition, your employer might offer incentives.
Home Investment
Solar panels installation also increases the value of your property. Unlike many home improvements, the increase is actually guaranteed. Homes with solar panels usually sell quicker and for a higher price too.
Some people may be worried that solar panels will make their property look unappealing. However, your solar panel installation company can help make sure to maintain the aesthetics of your home.
Long-Term Benefits
Installing solar panels is not an improvement that will last five years and then you won’t get any additional benefits from it. Many modern solar panels have an effective life of 40-50 years and warranties up to 25 years. You’ll be seeing the benefits for years to come.
In fact, the upfront costs of the panels themselves and the solar panel installation service are the biggest costs you’ll face. Many homeowners recoup the costs within only seven to ten years. After this time, your utility bills will be dramatically lower for years to come.
Reap the Financial Benefits of Solar Panel Installation
Solar panel installation offers a number of financial benefits. You can reduce your energy cost, quality for tax credits, rebates, and energy credits. Switching to solar power can even increase the value of your home.
If you found this article helpful, be sure to check out our other articles for ways to improve your home.