Is A Home Solar System Worth It?
If you are considering installing a home solar system but have your doubts, you are not alone. Since this is a sustainable energy source that can also offer financial incentives, many people are developing interest in it. As you look at the home solar system cost, you should remember that the solar installations have become much more affordable in the last one decade. If you read “New Energy Outlook” report from Bloomberg New Energy Finance, you will see why experts believe that solar is set to become the most affordable source of energy within three decades.
Perhaps you need more convincing. Here are some reasons you should seriously consider installing solar panels on your roof.
1. Tax Credit
The United States government offers the Residential Renewable Energy Tax Credit under the administration of the U.S. Internal Revenue Service. On top of this 30% credit, you also stand to gain from the many incentives offered at the state level. Remember that the federal tax incentive is ending in 2020, after which it reduce drop towards eventual elimination a couple of years later. Now is the time to take advantage of these incredible offers.
2. Potential Savings
Despite the expected cuts in the Federal Solar Tax Credit program, solar panels are still a great way to make energy savings. You can get a solar array for as low as $14,000, although you might consider this too expensive. Look at it this way: solar system owners can save up to $180 per month during the first year of the installation. That translates to $2160 per year. That means that the solar installation can pay itself within six years. Savings will continue for the lifetime of the system, which could be up to 25 years. Homes in some areas are able to save as much as $60,000 over 20 years. Therefore, the initial home solar system cost should not worry you so much.
3. Enhanced Property Value
Even energy savings do not excite you, the increase in home value should. According to a research by National Renewable Energy Laboratory, a home gains $20 value from $1 in electricity bill savings. Of course, a number of factors come into play here:
- The size of your array
- The current value of your property
- Location of your property
On average, a medium-sized home in the United States will fetch $29,555 when it has a 5kW system installed. Please note that these figures only apply for current electricity rates and house prices. As electricity rates continue to escalate, you can expect the impact of a solar installation to be even more profound.
4. Going Green
If you have ever thought about contributing to a greener planet, there is no better and more practical way than installing solar panels in your home. The sun is the best renewable source of energy. Powering your appliances with solar power reduces your dependence on utility companies.
More than a third of utility companies in America use natural gas and other non-renewable energy sources. Since these resources are being depleted, their prices will only rise in future. Moreover, using fossil fuels causes strain on the environment.
Installing a home solar system is one of the best investments you can make. While the upfront home solar system cost may appear high, all that can be covered within a decade. A right-sized system is all you need to enjoy financial and environmental benefits that run into the future. If you are in the US, do not wait until the federal solar tax credit runs out; call an experienced installer and start enjoying the numerous benefits of solar energy.
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