Bringing up home solar energy in conversation will get you some different reactions. Some people are hesitant to adopt the technology because it’s new — despite it being 200 years old. But most reel back because they assume the cost is too high to be economical.
When only considering the upfront costs of solar, it can be intimidating. Check out the below to see all of the cost savings.
Increases the Value of Your Home
Investing any amount without seeing immediate returns is daunting. You might consider it a sunk cost that won’t yield any fruitful payoff.
The United States and other prospering countries are converting to clean energy. Fossil fuels and the emissions that they cause are devastating the planet. More people are committing money, time, and resources to establish a grid of renewable energy.
This new Green Trend increases the demand for homes with solar power installed. Homes with solar panels sell for $15,000 more dollars than comparable homes. This alone almost counteracts the installation fee.
Government Incentives and Write-Offs
The government is trying to make a change for the better, too. The more people that they can move off of electric municipalities, the better. The United States is in a race with other countries, particularly China — the world’s leading solar producers by a large margin.
They’re now offering tax credits and incentives for homes that install solar energy. But as more people take advantage of the credit, the less valuable it becomes. About a decade ago, some local governments were fully subsidizing residential installations.
Currently, they’re offering different rebates and credits. Most notably is the federal property tax credit of 22% of the cost of the panels.
However, the amount will be reduced next year and the following year. Last year, the credit was 26%, so act promptly.
If you’re concerned about speedy installation, you should hire a local professional. Blue Raven and other companies offer expedited installation.
Amortizing the Cost of Home Solar Energy
The amortization of solar energy isn’t something a lot of people calculate. It can be tricky math. But, over ten years, the cost of solar is a pittance.
In most places, the cost of solar is about $2.75 per watt. So, if you get a system capable of producing 6 kilowatts, it’ll cost you about $18,000 after installation. Over ten years, that’s less about $1,800 annually.
If you commit to powering your home with solar, you could see huge savings depending on your region. On average, people saved $1,500 a year. But in climates like Los Angeles, it’s not uncommon to save $4,500 a year.
You may or may not break even after a decade in your state. But these calculations didn’t account for the government subsidies or the investment in your home.
Solar’s the Cheap Future
People are hesitant to adopt new technologies like home solar energy. They’re afraid of the costs. But, if you analyze it, it’s not expensive.
Installing solar panels will increase your home’s value by $15,000. The government has incentives to make the switch. And after 10 years, you’ll save money.
Are you ready for the future and to read more about affordable solar? Check out our other articles on the benefits of solar power.
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