Are Solar Panels Worth it? Benefits of Solar Panels
Solar panel systems have various advantages, but how can you know for sure if they’re worth investing in for your home? To assist you decide, we’ll go through some of the pros and cons, benefits and drawbacks of residential solar panels. Also, we recommend to ask a solar company these questions.
Advantages Of Solar Energy For Your Home
Lower Cost Of Electricity
According to a 2020 analysis by the financial organization Fundera, the number of regular telecommuting employees has increased 173 percent since 2005. And, as more people work from home during the epidemic, power use and utility rates will rise even further for many homes.
Adding solar panels to your house can help offset rising energy bills, allowing you to save money while working from home.
Improved Home Resale Value
Rooftop solar panels can raise the market value of your property while providing a greater return on investment (ROI) than many other forms of home upgrades. Solar panels increase the selling price of a property by 4.1 percent, according to Zillow.
In addition, a 15-year, eight-state research conducted by Lawrence Berkeley National Laboratory revealed a house price premium ranging from 0.78 percent to 1.05 percent per kilowatt (kW) of solar.
The Federal Solar Investment Tax Credit (ITC) is a dollar-for-dollar reduction in your federal tax burden that is equal to 26% of the cost of your solar energy installation. You can deduct the whole amount when your system goes live or over time. As long as the solar ITC is still in place, any unused credits will carry over to the following tax year.
On January 1, 2023, the tax rebate will be reduced to 22%, and in 2024, it will be reduced to 10% for commercial developments and 0% for residential projects.
Costs Of Maintenance Are Minimal
Solar power systems require little maintenance. Any storm or other natural event damage will be covered by your homeowner’s insurance, and any necessary repairs or replacements should be covered by the guarantee on your system.
Check the manufacturer’s warranty to see what equipment is covered and for how long.
Lower Environmental Impact
Solar power allows you to harvest the sun’s energy and use it to power your house or company while without adding to local air pollution. The majority of power is still generated by burning fossil fuels, with coal and gas accounting for 59.6 percent of net sourcing in the United States.
Installing solar panels and generating your own renewable energy at home helps to create a cleaner environment and a more reliable electric system. Solar panels have a functional life of 40 years or more and are recyclable when they reach the end of their useful life.
Enhanced Energy Independence
Using solar energy to generate your own energy makes your household more self-sufficient by removing your reliance on energy corporations and grid electricity. A residential solar panel array paired with a high-capacity backup battery or generator allows you to generate electricity on-site while also storing any extra energy for emergency usage.
Related: Independence Through Renewable Energy
Disadvantages Of Solar Energy For Your Home
The cost of your system is determined by the brand and kind of solar panels you select, the size of the system, and the incentives that will offset your out-of-pocket costs. You may be qualified for federal, state, and municipal solar incentives that will help you save money.
Buying your system using cash reduces your overall investment but takes time to pay off. Financing can minimize or eliminate your initial out-of-pocket expenses, but it will affect your lifetime savings.
Related: Average Cost of Solar Panels
Solar is a long-term investment, and whether you pay cash or finance the system, you will see a return on your investment over time. However, after you’ve passed the break-even threshold, you’ll be reaping the benefits of your solar investment for decades.
But what if you don’t intend to live in your house for the duration of the repayment period? As long as you don’t intend to relocate in the next one to two years, the gain in house value will likely still make solar a reasonable investment.
Not Suitable For Every Home
Regrettably, not every property is a good choice for solar energy.
To make the installation cost acceptable, a certain quantity of unimpeded sunshine is required. The quantity of solar electricity that may reach your home is determined by where you reside, how much shadow your roof receives (trees and roof structures such as chimneys cause roof shade), and the direction your roof faces (south-facing is best).
It makes little difference if your roof is new or old, but it must be in good shape in order for solar panels to be placed effectively. If you require extensive roof repairs in the near future, you should wait until those repairs are finished before thinking about solar.
Solar may potentially be rendered problematic due to the nature of your roof. The most prevalent form of roof, composite shingle, is simple to install. A standing seam metal or clay tile roof is more complicated; the cost will be greater, and you’ll need to locate an installer who is familiar with those roof types. If your roof is unsuitable with solar panels, ground-mounted solar may be a possibility.
Rising Solar Prices And Possible Supply Restrictions
Many solar panel system components are manufactured in nations whose manufacturing sectors have been interrupted for several months as a result of the COVID-19 epidemic. Due to restricted availability, these worldwide supply chain interruptions are anticipated to raise the price of solar panels, inverters, and related equipment.
Going solar today protects you from potential price increases or panel shortages.
A Summary Of The Pros and Cons Of Solar Panels For Your Home
- Electricity costs less.
- Increased house resale value
- Lowering taxes
- Low maintenance expenses
- Environmental effect is reduced.
- Enhanced energy independence
- The initial investment
- Time for retaliation
- Not suitable for every home
- Price increases and scarcity
Related: What Is The Best Roof For Solar Panels?
Find Out If Home Solar Panels Make Sense For You
Solar power gives homeowners environmental and financial benefits, but only if the home is a suitable match for installation. Check out our free solar potential calculator to discover whether the investment is worthwhile for your house.
How Much Electricity Do I Currently Pay?
The higher your electricity tariff, the sooner your solar panels will pay for themselves since the value you receive for producing your own power is higher.
Solar may still make sense in areas with low power bills, depending on the subsidies, rebates, and financing choices available.
How Much Would I Have To Pay For A Solar System?
Solar panels are a substantial investment for your house, but with the continuous availability of excellent financing options, you can frequently get solar with no money down.
This means that you may invest in solar today while leaving your money in the stock market until it recovers. This is a financial benefit of solar energy that is especially important during turbulent times. Fortunately, rebates, tax credits, and other financial incentives from the federal, state, and local governments will cut both the upfront and total life expenses.
How Will I Pay For My Home Solar System?
If you have enough cash funds to invest, paying for your system outright makes sense. In comparison to other investments, such as the stock market, solar delivers a low-risk return rate.
Having saying that, many people prefer to finance their system. Financing your solar system through a lender lowers the upfront cost and may frequently be configured to remove your power bill entirely by effectively replacing it with a loan payment. The loan has a shorter period than the life of a solar power system, which means that when your loan is paid off, you will receive substantially more financial rewards.
Does The Climate Affect The Viability Of Solar Panel?
Going solar provides advantages anywhere in the United States, however certain areas receive more sunshine than others, which increases the efficiency and energy production of your solar panels. Texas, Florida, and Colorado, for example, are particularly well adapted to solar.
Consider how much sunlight your house receives. Solar panels may not be the best option for your house if you have a lot of trees or other shadow impediments on your roof or land.