Solar energy is clean energy produced through the light and heat delivered by our sun. This energy is captured and converted into electricity and heat. Not only is solar energy efficient for the environment, it also has a number of financial benefits. Installing solar panels is costly, but the long-term financial benefits far outweigh the initial investment.
Instant Savings from Solar Powered Energy Installation
For homeowners, the installation of solar powered energy systems is costly; however, there are some instant financial benefits to consider. Solar power instantly increases your home’s overall value, and oftentimes this increase in valuation is comparable to the investment. For example, if you spent $4,000 on solar panels and installation, your home is likely to increase in value by $4,000.
Unfortunately, solar panels cost approximately $5 per watt, which is roughly $15,000 for the average home setup. It’s unlikely your home will go up by that much unless you’re living somewhere where sun is guaranteed year-round and energy costs are unusually high. Considering the money you’ll save on utility bills, solar panels in these locations are a profit machine.
Solar panels are extremely valuable in sunny locations. A great example of this is Southern California. There’s plenty of sun and people are inclined to burn cleaner energy, so reaching out to solar companies in San Diego actually has the potential to almost instantly pay for themselves. In sunny and green-minded locations, your investment has the potential to increase your home’s value, including fully covering your initial investment.
Long-term Savings with Solar Powered Energy Installation
How long it takes to pay off your solar panels depends on factors such as the size of your house, the amount of power you plan to use, and even the location. Your first step should be calculating the tax incentives you’re guaranteed to receive. The federal government offers a 30 percent return, and your state may also offer additional rebates and returns.
Your next calculation should be your electricity rate. “For instance, if your installed rate was $3.95, and your average electricity cost is $0.20 per kilowatt hour, your pay-back time should be about 15 years. Generally, the less expensive your system, and the higher your regular electricity rate, the shorter the pay-back time on your system will be.”
Savings and pay-back time is also determined by how much energy you’re consuming in the home. If you purchased a system capable of meeting all your energy needs, you’ll never have to pay another energy bill again.
Making Solar Powered Energy Affordable
The government is shouldering some of the financial responsibility by providing rebates and tax incentives. There’s also government backed and private loans if you don’t have the savings to pay for your system outright. Many loans offer low-interest rates, as supporters of solar powered energy systems tend to be more generous because it’s more about doing what’s eco-friendly than making buckets of money. Watch out; however, because not all loan companies can be trusted.
The bottom line is this: solar powered energy systems are the future because they burn cleaner than fossil fuels. They are growing in popularity and efficiency; therefore, they’re more valuable now before everyone has/wants one.
These systems are better for the environment and will bring about savings both instantly and in the long term. Governments are even stepping in to help homeowners finance solar powered energy systems by offering rebates, tax breaks, and loans. Solar powered energy systems are a great way to save and are becoming more accessible, so make the switch today.