Want to learn how to save money by adding solar power to your home or business? Beyond watching that monthly energy bill drop or even disappear, adding solar power is a home improvement that pays off. Once you know the true cost of going solar, it really makes sense. Read on to learn the benefits of going solar.
The use of solar technology has increased significantly over the past five years. Homeowners, businesses, and utility companies are going solar. According to the US Department of Energy “Solar power is more affordable, accessible, and prevalent in the United States than ever before…Since 2010, the average cost of solar PV panels has dropped more than 60%, and the cost of a solar electric system has dropped by about 50%.
It would be hard to overstate how impressive 2016 was for the solar industry,” said Abigail Ross Hopper, Solar Energy Industry Association (SEIA) president and CEO. “Prices dropped to all-time lows; installations expanded in states across the country and job numbers soared. The bottom line is that more people are benefiting from solar now than at any point in the past, and while the market is changing, the broader trend over the next five years is going in one direction – and that’s up.”
With the price of solar panels at an all time low, now is the time to save money by going solar.
Solar is an Investment
Solar energy is more than just a purchase of a service; it’s an investment in your home. Investing in a solar power system for your home is a purchase that saves you money for decades to come. Unlike most home improvements or remodeling, adding solar power to your home pays off.
Kitchen Remodel vs. Solar Power
Kitchen renovations are one of the most popular home improvements. Many families have either already undertaken one or are planning to in the future. A recent article from HomeAdvisor.com shows that the majority of kitchen remodels in 2017 cost between $12,590 and $33,000. The average cost is $21,670. This price range reflects the size of the renovation and materials used. The two main benefits to a kitchen renovation project are your satisfaction with the kitchen and increasing the value of your home.
How does going solar save money?
25-year warranty on SunPower solar panels guarantees value of system
Saving on energy bills over the life of the system (savings of $30,000 for a home with $100/month energy bills)
The utility company pays you for additional power you generate
Investment Tax Credit – 30% of the cost of the system applied to your tax liability
Increases property values
25-year warranty
Like most renovations, solar panels will experience some form of degradation over time. However, unlike the cabinets and appliances in an upgraded kitchen, our solar panels have a 25-year warranty. Are there any 25-year home appliance or workmanship warranties for a kitchen upgrade?
Additionally, the solar panels we use are rated to operate above 80% of their original power by the end of their warranty term. If that doesn’t impress you, consider that most laptop batteries drop to 80% of their total charge capability after around 350 charges. That means if you charge your computer every day for one year, by the end of that year, your battery has already hit a maximum efficiency of 80%.
Energy bills
You save money by going solar in decreased energy bills. With one of our systems, you could experience drastic reductions in your energy bill for 25 years after the purchase. Take, for instance, a monthly electric bill of $100 (which is $1,200 a year). Then add in a solar system that meets 100% of your electricity demands. With this combination, you could see savings of $30,000 over the warranted lifetime of the system. And this is done assuming a flat rate for the electric utility. In reality, electricity rates increase every year, as most of us have already experienced.
Get paid for excess power
Another way to save money by going solar is getting paid by the power company. The great part about going solar is that every portion of solar energy that you generate is unaffected by the increase in electric bill prices. And to make it even more interesting, the electric company will bank your excess generation if your system generates more electricity than you use. If at the end of the year your net generation is greater than your consumption, the electric company will pay you for the amount. This means that in addition to saving money every year, you could also be getting paid.
Investment Tax Credit (ITC)
You also save money by going solar through the Investment Tax Credit (ITC). The ITC is a federal program you use after a solar system is completley installed. It is worth 30% of the total cost of that system and is applied to your tax liability during the tax year after the installation is completed. This means that solar will not only save you the money you would otherwise pay for the bill, but it will also save you money on your taxes.
Solar increases property values
As discussed earlier, remodeling a kitchen will result in increasing the value of your home. Likewise, installing a solar system will also increase your home’s value. However, with a kitchen, you don’t avoid a bill or get paid every time you cook in it.
Research at Berkeley Lab shows that homes with installed solar systems sell for a higher price than similar homes without. The study shows homes with solar systems sold for an average of $14,000 or $3.78 per Watt more than comparable homes without solar. That means homeowners who installed a system rated for 5 kW, saw an average addition of almost $19,000 to the value of their homes.
In conclusion, solar isn’t like other home improvement options. You can save money by going solar in many ways. It not only adds significant value to your home, but it also generates a positive monthly cash-flow by decreasing or negating your electric bills. It can even result in a written check from your utility company every year. Although solar makes perfect sense purely for the sustainability and energy independence gains it provides, the financial benefits are also significant.
Want to see if you qualify for solar power? Click the here below for a free assessment from one of our solar professionals!