Buying Solar Panels Increases Your Homes Value
Whether you finance your solar system or purchase it with cash, you are adding equity to your home. You are in essence adding a power plant to the roof of your home. This solar panel system has a tangible value which is transferred upon the sale of your home.
Berkeley Labs completed a study looking into the value of homes with photovoltaics . They studied, 22,000 sales of homes, almost 4,000 of which contained PV systems in eight states from 1999 to 2013. The value added to home equity was $4 a Watt. So the larger the solar system size, the greater the added value to the home. This Berkeley Labs study encompassed various regions, utilities, and home types.
How Are Teslas Solar Panels So Cheap
Teslas easy ordering process is one of the reasons they have such low prices.
Their brand name recognition also helps a lot. Tesla doesnt have to do a whole lot of work to get people to their website. People know Tesla – so they go right to it. This, plus the fact that their order process is entirely online and they only offer four standard system sizes eliminates a ton of overhead costs that many other solar companies face.
Not to mention, Tesla is a large company – they can afford to undercharge for their panels and take a slight loss at the front end of the deal.
Find out how much a solar system would cost for your specific home
Will Solar Panels Affect The Value Of My Home
Don’t assume that solar PV installation will guarantee a comparable increase in the value of your property. In fact, the majority of estate agents we surveyed** think that having solar panels makes no difference to how much your home is worth.
Just 8% said they thought solar panels increased property value, and 17% said they decrease its value. But 67% of estate agent businesses told us that having solar panels makes no difference to the value of a property.
Also Check: Do Solar Attic Fans Work At Night
We Assess The Factors That Make A Homeowner A Good Candidate For Solar Energy
While the many benefits of solar energy are well-touted, there are also high upfront costs associated with installing a home renewable energy system. At the end of the day, are solar panels worth it?
The truth is, purchasing a solar panel system isn’t right for every home. At its best, solar allows you to reduce your environmental footprint, offset your monthly energy bills and increase your independence from your local utility company. With rising energy rates and the price of modern solar being as low as it is, the cost of doing nothing usually turns out to be greater than the cost of purchasing solar.
With the wrong home, however, panels might not generate enough energy to be worth the cost. So, how can you tell if solar panels are worth it for you? In this article, we’ll review the factors that determine solar panel costs, system longevity and return on investment to help you confirm if you’re a good candidate for solar or if you should hold off.
When considering an investment in panels with one of the best solar companies, it helps to know how much your initial costs would be. You can start getting free, no-obligation quotes from top solar companies in your area by using this tool or filling out the 30-second form below.
Buying A House With Owned Solar Panels: Questions To Ask
The easiest case is when the homeowner paid cash for the solar panels. It means that when you buy the home, you will fully own and be responsible for the solar panels.
If they used a loan, they may have an outstanding balance and still be paying off the loan, even after selling the house. As a practical concern, this doesnât affect your ownership of the panels: you will own them outright, even if the original owner still has a remaining balance on their loan.
Don’t Miss: What Is The Tax Rebate For Solar Panels
Consider All Of The Costs
Solar panels will almost certainly save you money in the long run, and the longer you stick with the renewable energy source, the more you will end up saving as you watch your utility bill shrink. However, there are costs that need to be considered. There is the initial up-front cost of the panels, which can be quite expensive. You will want to consider if it is possible to pay for this expense outright or if you will need to finance the purchase. Make sure you account for the interest rate and how it will accrue over time. You can also rent solar panels. The installation process itself will likely require hiring a contractor, and you’ll have to account for the costs associated with that including any modifications needed around your home to accommodate the solar panels. Permits may also come with a one-time fee. Finally, consider the potential maintenance that will be required over the lifespan of the panels.
The Cost Of Solar Panels Vs The Cost Of Doing Nothing
Sticker shock can be common when looking at solar proposals. But it’s important to understand that by purchasing a solar system, you’re essentially paying for 25 years of electricity upfront. So make sure to think about what you’d spend on future utility bills to see whether solar panels are worth it for your home.
For example, taking an average monthly electricity bill of $125 , I could theoretically expect to spend $46,837 on conventional energy over the next 25 years if utility rates continue to increase around 1.8% each year, the current average according to the EIA.
EcoWatch
To put this in perspective, based on the average cost of solar per watt in Louisiana, a solar system that offsets my energy usage would cost around $15,214 after the tax credit .
Granted, not all solar systems will offset 100% of your energy use each month, but a modest solar array can be expected to offset at least 50-75% when properly designed and installed. How does that compare to spending $50,000 on dirty and unreliable energy over the next few decades?
Recommended Reading: How Much Power Does A 300 Watt Solar Panel Produce
Considering Getting Solar Panels Here Are The Right Questions To Ask
Solar panels are no longer just for hippies. If youre just as interested in saving money as you are in saving the planet, solar panels can help you do that. Their price has come down, their effectiveness has gone up, and Congress extended a 30 percent federal tax credit for installing them until the end of 2019. All of this means solar panels can now pay for themselves in as little as five years, depending where you live. But are they right for your particular home? Thats a question that raises more questions. Ask yourself these things before making a decision.
Financial Incentives Will Be Reduced As The Popularity Of Solar Grows
While there are significant rebates, tax credits and other incentives in place to encourage homeowners to go solar, incentives programs usually get phased out as solar becomes more popular and costs decrease. The current federal renewable energy tax credit is 30 percent through 2019 but after that point, it will be phased out for residential systems. Some state and local governments offer similar programs that will be reduced over time. A few examples:
- California used to have rebates up to $15,000. But thanks to the popularity of solar in the Golden State, those rebate programs have been eliminated.
- In New York, the Megawatt Block Incentive Structure gives solar energy system owners a rebate based on the size of their system . As more property owners install solar, the value of the rebate is reduced. The highest incentives available through the program are $1/watt, but will eventually be reduced to $0.15/watt as adoption increases.
- Massachusetts had a solar rebate program that initially gave rebates in the $9,000 range. Now, the rebate program has ended and homeowners are only eligible for a tax credit, which is capped at $1,000.
While incentive programs differ from state to state, make sure to explore the incentives that are available where you live so you can determine how putting off your solar purchase will impact the tax credits or rebates you could receive.
Read Also: Is Getting Solar Panels A Good Idea
One Reason To Go Solar Now: Increased Electricity Prices Cut Into Savings
If you wait to go solar, youre stuck paying your utility electricity bill every month, which can be an increasingly expensive proposition: electricity prices have risen almost 30% on average in the last 10 years, and depending on where you live, could increase by another two or three percent per year.
The typical U.S. home spends over $1,400 a year on electricity. If you buy a system that meets 100 percent of your electricity needs today, you can eliminate your electricity costs and have an extra $1,400 in your pocket a year from now. The following year, when prices go up, youll save as much as $1,500 and the savings will continue to grow for the 25 to 35 years that your system is operational. For every year that you dont buy solar, you lose out on all those electricity bill savings.
Other Types Of Solar Loans
In-house financing
Some solar companies offer financing through third-party lenders. These loans can be similar to home improvement loans unsecured with no down payment required. The payment plans could have lower rates than personal loans and longer repayment terms, making your monthly payment lower.
Compare a quote from your solar company with other options to find the most affordable one.
Home equity loan
If you already know how much your solar panels will cost, you can apply for a home equity loan. These loans have lower rates and longer repayment terms than unsecured loans because putting up your home as collateral reduces some of the risk for a lender.
Home equity line of credit
A HELOC is another low-rate option that is secured by your home. Its more flexible than a home equity loan because you can draw on funds as you need them for the project, and you often have the option to only pay interest during the initial portion of the loan.
If youre considering a home-equity option, learn the pros and cons of each before you choose.
Cash-out refinance
A cash-out refinance can get you a new mortgage at a lower rate that includes the cost of solar panels and installation. Its a good option if current mortgage rates are lower than what youre paying and if you can keep closing costs low.
Leasing or getting a power purchase agreement
The U.S. Department of Energy has more details about the difference between a lease and power purchase agreement.
Read Also: Can Mobile Homes Have Solar Panels
Do You Need To Install A Tesla Powerwall With Tesla Solar Panels
Over the past year, Tesla has flip flopped back and forth between whether or not they require a Tesla Powerwall with their solar panel installations. As of October 2021, Tesla does not require a Powerwall with Tesla solar panels.
However, the company does require a Powerwall with their solar roof tile installations.
Ok So Is Getting Solar Still Worth It
According to Chris Barnes from consumer group Choice, the answer is pretty clear.
“In almost all cases for almost all homes, yes, it’s still worth it,” he said.
“That’s a reflection of the fact the price of the actual panels has gone down and the capacity of the solar panels has gone up. So really it makes sense to put as many on your roof as you can afford.”
The Wilkes bought a 6.6-kilowatt system for $7,500 after the federal government rebate, which was about $4,000.
This out-of-pocket cost included the panels themselves and the inverter, which transfers the power into usable electricity.
That’s about the average size and cost of a solar installation, according to Choice.
But prices do vary and could be between $4,000 to $8,000, after the rebate, and depending on the quality and the size you’re after.
“There’s a really wide range of pricing,” Sarah Morton, from Green Energy, said.
“Solar panels definitely vary in quality. For more peace of mind you could choose Tier 1 panels, which have a better reputation for performance and quality.”
Mr Barnes suggests getting recommendations and shopping around for installers, while avoiding door-to-door sales tactics.
He also says it’s important to understand the product warranty on the panels and inverter.
For example, a 10-year product warranty on the panels and at least five years on the inverter is fairly standard.
Recommended Reading: How Much Does It Cost For One Solar Panel
Solar Power Before A Roof Restoration
We get a number of enquiries from households planning a roof restoration in the near future. Our install department has extensive experience managing this process, and we can ensure that the solar system is installed shortly after the roof restoration is completed. If your roof is due for an upgrade or restoration, it is important not to install the solar panels first, as it can cost up to around $1,000 for a team of qualified solar installers to take off the panels and reinstall them.
Future Changes To The Electricity Market
The electricity grid in Australia wasn’t originally designed to cope with large numbers of homes exporting solar power into it. There are proposals for how to modernise the grid and manage it more effectively and fairly, and these include a possible surcharge or “solar tax” to owners of solar PV systems who want to sell their excess power to the grid. What’s this all about, and does it mean a storage battery becomes a better option?
What’s the problem with the electricity grid?
The electricity grid in Australia was originally built with the expectation that electricity went in one direction only, from power stations to homes and businesses. It wasn’t designed to also allow for solar-generated power to flow back the other way. While that’s been possible to a reasonable extent so far, the grid is starting to hit the limits of how much electricity it can handle from domestic rooftop solar.
The grid needs a lot of work to update it to become flexible enough to take full advantage of renewable energy sources including domestic solar feed-in, but also allow flexibility for all consumers. This work has to be paid for somehow. Currently, some consumers have little access to the benefits of solar power but must still pay for electricity, and to some extent they subsidise the benefits that solar owners obtain.
What’s the solution?
The proposal includes the option of a surcharge to solar PV system owners who export power to the grid .
When is all this going to happen?
Recommended Reading: Do Solar Panels Have To Go On The Roof
Why Leasing Isn’t A Bright Idea
The steep up-front costs for a residential solar system can make a leasing companys sales pitch sound pretty appealing: Pay little or nothing and save hundreds of dollars per year on average. Leasing can also look seductively simple compared with buying: Theres no need to shop separately for an installer and financing you just sign on the dotted line. So its not surprising that 72 percent of the people who installed residential solar systems in 2014 did so through leasing or another type of third-party arrangement. But the reality is not quite so sunny.
Your Savings Will Be ModestPeople who lease their solar systems save far less than those who buy them outright or with a loan . Many leases contain an escalator clause that can further reduce savings by increasing payments 3 percent per year. So if youre paying 12 cents per kilowatt-hour in year one, with a 3 percent escalator, youll be paying 18.2 cents in year 15. That means that if the cost of energy doesnt rise as quickly as the contracted lease payments increase, your savings could evaporate.
You Lose Control of Your RoofLeasing companies want to maximize their profit, so theres a chance you could wind up with more panels than you want and that they could be installed in highly visible placessuch as facing the streetwithout any regard to appearance. To avoid that, check the final system design and placement before signing the lease. It could be different from the initial mock-up.
Reasons You Should Go Solar In 2022
If you are looking to go solar then 2022 is a good year to make the move. Here are some reasons why solar energy is goodfor 2022.
- Offset your current electrical usage and start benefiting from savings and net-metering as soon as possible.
- Take advantage of subsidies while they are still highly rewarding. Reduce the cost of going solar in 2022 by 26% thanks to the federal tax credit.
However, going solar one year later would mean you only get a 22% reduction as the federal tax credit reduces to 22% in 2023.
- Your property value will rise as soon as you add a solar system to your house.
Read Also: What’s Bad About Solar Energy
Cooau Solar Panel For Outdoor Security Camera Waterproof Solar Panel With 10ft Usb Cable Compatible With Dc 5v Rechargeable Battery Camera Continuous Power Supply For Security Camera
- Compatibility COOAU solar panel is specially designed for COOAU outdoor security cameras, also support other 5V rechargeable battery powered security cameras with micro USB interface. . The output power is 3.2W.
- Non-stop Power Supply Upgrading solar panel can absorb more sunlight, provide continuously power for your camera without worrying about frequent charging.
- IP65 Weatherproof IP65 Weatherproof design allow you to install the camera anywhere you want, no worried about the bad weather, like heavy rain, snow, storms ect.
- Easy Installation 360°Adjustable mounting bracket let you to position the solar panel to any angle and maximize the sun exposure. 10ft power cable offers you flexibility when charging your camera.
- Quality Warranty If you have any questions about the COOAU solar panels, please feel free to contact us, our service team will reply you within 24 hours.
