The future of solar power looks brighter than ever in the US, with solar PV projected to be the fastest-growing source of renewable energy from now to 2050. The demand for solar energy has risen dramatically over the last two decades. This is largely thanks to the growing public concern over climate change that has pushed the government to introduce incentives such as the Renewable Portfolio Standard (RPS) that requires state utilities to generate a significant proportion of their energy from renewable sources. While the main benefit of the widespread installation of solar will be slowing down climate change and promoting sustainability, people realized that solar energy makes a lot of financial sense as well. These are some financial benefits you can expect if you switch to solar energy in your home.
Lower electricity bills
The most obvious financial benefit of generating solar energy in your home is the significant savings it instantly has on the rising utility bills. Every kWh that you generate is energy that you won't have to buy from the utility company, which means that you can eliminate or at least reduce your energy bill. You might be wondering, what about the high installation cost? Well, while investing in solar panels for your home is much more expensive than getting connected to the grid, the payback period is less than 10 years, which means that the power you generate after that until the end of their 30-year lifespan will be free. If your panels are generating a surplus, you can actually end up making money by selling it to your local utility company.
Improved home value
Like any other home upgrades, installing solar power can lead to a significant boost in home value. Since solar panels decrease electricity bills, most home buyers are willing to pay a premium for a solar home. However, the size of the premium depends on factors like your local electricity rates and how much energy you're generating. On top of that, solar panels can expedite the home-selling process, especially if your target market is Millennials who have a preference for eco-friendly products and services.
Tax benefits
Solar panels come with tax incentives at the federal and state level. For example, the federal government currently offers homeowners a tax credit of 26 percent allowing homeowners to save roughly a third of the initial investment. However, the federal tax break is not permanent and is expected to drop down to 22 percent at the end of 2020 and end at the end of 2021. Many states are also offering their own rebates on top of other inducements. For example, in Arizona, homeowners can get a flat $1,000 after installing solar panels.
Boosts the macroeconomy
By switching to solar, you can save your own money as well as help the government save billions. For example, studies have shown that producing and burning coal for energy can cost the economy up to $500 billion annually as a result of its impact on critical resources, damage to crops, and hospitalizations due to pollution impacts. By going solar, you'll reduce the amount of energy you get from coal plants and save the government some money. On top of that, you can contribute to new jobs and income-generating opportunities in your community.
Although the initial installation costs are high, solar energy can help you save two types of green; the natural environment and your hard-earned money. The general savings on utility bills, tax deductions, and bump in home value make solar energy a worthy investment and the best alternative to traditional non-renewable energy.
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