As a homeowner, we know you’re always looking for ways to save money and reduce your monthly expenses. One of the easiest and most effective ways to do this is by installing solar panels on your home. In this blog post, we’ll explore the financial benefits of going solar and how it can help you save money in the long run.
Lower electricity bills
By generating your own electricity from the sun, you can significantly reduce or even eliminate your monthly electricity bills. According to the Solar Energy Industries Association (SEIA) [2023], the average U.S. household can save between $10,000 and $90,000 over the lifetime of a solar panel system, depending on factors such as location and energy consumption.
Tax incentives and rebates
The US government offers a federal solar tax credit, which allows you to deduct 26% of your solar installation costs from your federal taxes. Many states and local governments also offer additional incentives, such as rebates and grants, to encourage homeowners to go solar. For example, in California, homeowners can receive a rebate of up to $0.20 per watt of installed solar capacity through the state’s Solar Electric Incentive Program. As of 2021, the U.S. federal government offers a solar tax credit, known as the Investment Tax Credit (ITC), which allows homeowners to deduct 26% of the cost of installing a solar energy system from their federal taxes. This credit is set to decrease to 22% in 2023 and expire in 2024 unless Congress extends it.
Increased home value
Studies have shown that homes with solar panels sell faster and for more money than homes without them. According to a report by Zillow, homes with solar panels sell for an average of 4.1% more than comparable homes without solar. For a median-valued home, that translates to an additional $9,274 in value. A study by Zillow found that homes with solar energy systems sold for 4.1% more on average than comparable homes without solar power.
Protection against rising electricity rates
Electricity rates have been steadily increasing over the years, and this trend is expected to continue. By generating your own electricity with solar panels, you can protect yourself against these rising costs and enjoy stable, predictable energy expenses for years to come. In fact, according to a report by the Energy Information Administration, electricity rates are expected to increase by an average of 2.8% per year over the next decade. According to the U.S. Energy Information Administration (EIA), residential electricity rates have increased by about 15% over the past 10 years (2011-2021). By generating your own electricity with solar panels, you can protect yourself against these rising costs
Low maintenance costs
Solar panels require very little maintenance, and most systems come with warranties that cover them for 25 years or more. This means that once you’ve made the initial investment in solar, you can enjoy the financial benefits for decades with minimal ongoing costs.
Installing solar panels on your home is a smart financial decision that can save you money in the short term and the long term. With lower electricity bills, tax incentives and rebates, increased home value, protection against rising electricity rates, and low maintenance costs, going solar is a win-win for your wallet and the environment. If you’re interested in learning more about how solar can benefit you, contact us today for a free consultation.