2. Increase Your Home’s Value
By making the switch to a solar energy system, you may also be increasing your home’s value.
In fact, when analyzing homebuying trends from March 2018 to February 2019, Zillow found that homes with solar panels sold for 4.1% more than homes without them. Another 2015 study conducted by researchers at the Lawrence Berkley National Laboratory found that solar PV energy systems increased the value of a home by about $15,000.
Homes with solar panels aren’t just valued in sunnier states either. Going back to Zillow’s findings, we learn that in New York solar energy systems sold for 5.4% more, adding an extra $23,989 in home value.
Increasingly, using solar energy to power your home could make a significant long term financial investment.
3. Take Advantage Of Incentives For Renewable Energy Sources
While we’ve considered what you can potentially save by installing solar panels, we’ve yet to account for the added savings that come from incentives.
One incentive for using solar energy is the federal solar tax credit. A tax credit is a dollar-for-dollar reduction in federal income taxes owed to the IRS. This same concept applies to the federal solar tax credit which allows a percentage of the cost of a solar PV system to be claimed on federal income taxes.
The Federal Investment Tax Credit (FITC) offers a 26% tax credit for solar systems installed in 2020 – 2022, and it will decrease to 22% for systems installed before December 31, 2023. To qualify for the solar tax credit, you must have a sufficient tax liability and own the home where the solar panels are installed, and it must be a primary or secondary residence.
Several states also offer incentives such as tax credits, rebates, benefits for low-income homeowners or sales tax savings on solar equipment. However, such incentives will vary depending on the specific state, as well as your eligibility. So, be sure to look into your local and state incentive programs to see what’s available to you.
Net metering is another important incentive. Simply put, net metering is a way to sell the excess energy your solar panels produce to your electric company. And while this is one of the best ways to save money, net metering programs are not available in all 50 U.S. states. For this reason, you’ll want to find out what programs your state offers, if any.
4. Insulate Yourself From Future Utility Rate Increases
In 2021, the U.S. Energy Information Administration (EIA) reported that residential electric customers paid a nominal average price of 13.72 cents/kWh – the highest on record. They also predict that electricity prices will continue to rise in the years to come.
Given the rising utility costs, installing solar panels in your home may be a worthwhile investment. Since solar panels use solar energy to power your home, you will no longer have to pay your electric company. On the contrary, rising electricity costs might actually help you save even more money through net metering. The higher the price of electricity, the more you can sell your extra solar energy for.
5. Power Your Home During An Outage
When there’s a power outage in your area, depending on the type of system you have, it might be possible to keep the electricity on in your home.
Residential solar power systems can fall under one of two categories: grid-connected or off-grid.
An off-grid system isn’t connected to its …….