Raises Your Home Value
Having a solar installation is considered a value addition in the real estate market. If you are planning to sell your home, having an existing solar panel installation can help you sell it faster and fetch you a much higher price over and above the investment cost.
Most studies in the real estate market indicate home buyers are willing to pay a premium for a solar home. The reason is simple. Getting a solar panel system installed is not so easy. For enjoying the benefits of solar without hassles, home buyers are ready to pay extra. Market studies indicate that solar installation raises the home value by ~4%.
How Much Will You Save
Once you know how much a solar power system will cost upfront, and how much energy it will produce, you can predict how much you can save in energy costs per year.
This is another tricky calculation, however, because a lot depends on how you pay for electricity at the moment. Utilities often charge residential consumers a flat rate for electricity, regardless of the time of consumption. This means that instead of offsetting the expensive cost of peak electricity production, homeowners’ solar power systems merely offset the price they are charged for electricity, which is much closer to the average cost of power production.
However, many utility companies in the U.S. have introduced pricing schemes that allow homeowners to be charged at different rates throughout the day in an attempt to mirror the actual cost of electricity production at different times: This means higher rates in the afternoon and lower rates at night. A PV solar array may be very beneficial in areas where this sort of time-varying rate is used since the solar power produced would offset the most costly electricity.
Exactly how beneficial this is for a given homeowner depends on the exact timing and magnitude of the rate changes under such a plan. Similarly, utilities in some locations have pricing schemes that vary over different times of the year due to regular seasonal demand fluctuations. Those with higher rates during the summer make solar power more valuable.
Solar Energy Doesnt Work At Night
Thanks, Captain Obvious! But seriously, you have to consider the reality that your rooftop solar panels wont create electricity at night. Yes, a tiny fraction of sunlight is reflected off of the moon and absorbed into the solar panels, but its essentially pitch black at night. And when theres no light, solar panels dont produce electricity.
This becomes especially relevant if you want to be completely off the grid and have your home 100% powered by solar panels. If you arent tied to the electric grid, you need energy storage devices to house the energy your solar panels produced earlier in the day so you have power at night. Otherwise, youll be lighting oil lamps to illuminate your home.
Recommended Reading: Solar Companies In Southern California
Energy Independence From The Grid
If you have ever had to withstand days or weeks-long power outages the idea of being able to be in control of your own power system is ideal.
Alternatively, those who prefer to keep a house or cabin off-grid for whatever reason can install solar panels to create their own independent source of energy.
Whatever your reasoning, with the right equipment you can create your own independent clean energy system using solar panels. This generally requires the use of a solar battery system to store energy.
If this is your goal make sure to consult your solar installer to make sure you get all of the equipment you need to power your home if there is a grid-wide power outage.
A Short History Of Solar Panels
The development of solar energy goes back more than 100 years. In the early days, solar energy was used primarily for the production of steam which could then be used to drive machinery. But it wasn’t until the discovery of the “” by Edmond Becquerel that would allow the conversion of sunlight solar electric energy. Becquerel’s discovery then led to the invention in 1893 by Charles Fritts of the first genuine solar cell which was formed by coating sheets of selenium with a thin layer of gold. And from this humble beginning would arise the device we know today as the solar panel.
Russel Ohl, an American inventor on the payroll of Bell Laboratories, patented the world’s first silicon solar cell in 1941. Ohl’s invention led to the production of the first solar panel in 1954 by the same company. Solar panels found their first mainstream use in space satellites. For most people, the first solar panel in their life was probably embedded in their new calculator – circa the 1970s!
Today, solar panels and complete solar panel systems are used to power a wide variety of applications. Yes, solar panels in the form of solar cells are still being used in calculators. However, they are also being used to provide solar power to entire homes and commercial buildings, such as Google’s headquarters in California.
Read Also: How Much Kwh Does Tesla Solar Roof Produce
Lock In Your Electricity Rate
It is not a figment of your imagination. Your electricity bill is going up because the rates are going up at a steady pace. Maybe your consumption has something to do with it as well. However, the fact remains that the utility rates have gone up by 15% in the last decade alone. And, this trend is expected to continue.
You can save yourself from the escalating bills by going solar. The lifespan of solar systems is 20-25 years. And most of its cost comes from the upfront capital cost. As solar installation doesnt have any moving parts, its cost of maintenance is very low or negligible. This means, once you install the system, you are virtually locking the energy rates for its lifespan.
Insurance Against Rising Power Prices
One thing most homeowners know is that electricity keeps getting more expensive. The price of electricity has increased steadily over the past 10 years, with an average increase of about $0.2 per year. The cost of electricity will continue to rise into the future, meaning your electric bill will continue to go up too.
Solar panels protect you from these rising electricity costs. Because you are producing your own energy, you dont have to buy that expensive power from your utility. So, rising electric costs are a worry of the past! In fact, rising prices might actually be a good thing when you install solar.
For example, lets say your utility charges 12 cents per kilowatt-hour of electricity. That means with net metering, your utility would pay you 12 cents for each excess kWh of electricity your solar panels produce and send to the grid.
If your utility raises its electricity price to 13 cents per kilowatt-hour of electricity, that means the power you send to the grid would also be worth 13 cents.
So, net metering is saving you more money each time your utility company raises its prices!
Don’t Miss: Is There A Solar Storm Coming
Solar Power Is Abundnt
The tntl f lr nrg and solar systems we use bnd imagination.
The urf f th earth rv 120,000 trwtt of solar radiation 20,000 tm mr wr than what is ndd t ul th ntr wrld.
So, with greenhouse gas emissions and the definite depletion of fossil fuels, we will have to rely on solar power systems.
What Are Solar Panels Used For
Government and big business corporations are also one of the biggest users of solar panels to generate clean, renewable energy. Businesses will use solar panels to slash the cost of their operation bills and free up cash flow to re-invest in their business.
Governments around the world are taking a big step with solar energy and it is being used to power trains, buses and even the international space station.
For homeowners, the need to have solar panels has become increasingly more popular over the years. This is because solar panels can be used to generate electricity at home.
People are catching on about the endless benefits of rooftop solar. Its exciting to see how popular it has become over the years.
This electricity can then be used to power your electrical appliances in your home. Solar can power anything electrical, from your TV or fridge to your iphone or game console.
Essentially homeowners can become less dependent on the grid. At the same time you can save a significant amount of money on power bills each month.
Don’t Miss: How Much Does 1kw Solar Panel Cost
You Cant Take Solar With You
One of the disadvantages of installing solar panels on your home is that it can be expensive to move them, should you decide to move. The net metering agreement with your utility is fixed to the property. Also, finding someone to remove and reinstall your solar panels can be costly.
But, solar panels do add value to your home, so even if you do move, you are likely to see the value of your solar panels reflected in a higher sale price.
If you do plan on moving in the near future, it is best to purchase your solar panels outright. If you have a solar lease or a power purchase agreement , you will need the new owner to take over your agreement, which can be a hassle.
Is Leasing Or Buying Solar Panels Right For You
Installing solar through a zero-down payment approach, like a solar lease, can be very tempting. It is important to keep in mind, however, that although you wont have to pay any upfront costs, you wont save as much money as you would if you had bought the solar panels.
On the flip side, there are some situations in which entering a solar lease makes perfect sense. A solar lease might be right for you if:
- You are not eligible for the federal tax credit
- You are not eligible for SRECs or other local solar rebates
- You do not qualify for a solar loan and you dont have cash to purchase a system outright
Regardless of whether its the best possible way to go about it, for many people wanting to switch to solar, leasing panels is the only way. In order to find the best solar financing options for your, you should get solar pricing quotes from multiple installers.
Find out how much you can save with solar
You May Like: Solar Water Heater For Sale
Solar Panels Have Long Lasting Warranties
Companies that design, test and manufacturer and solar panels include long lasting warranties with their products.
This shows that they have a lot of confidence in the performance of solar panels and that they are guaranteed to reach a minimum performance for a period of time.
Long lasting warranties are a big benefit of solar panels because they show that they wont break or stop performance within the first 10+ years installing them. Companies like Jinko, LG and SunPower offer great warranties.
Homeowners can feel like moving to solar is less risky, because they are covered by the solar panels warranties.
It also means they can work out their estimated saving given that there are no issues with the solar panels.
Solar Electricity Can Be Sold Back To The Grid
Depending on where you live, you could be eligible for net metering. Net metering is an electric billing tool that uses the electric grid to store excess energy produced by your solar panel system. As you send this energy to the grid, your utility company will provide you with bill credits essentially, youll be able to sell excess solar energy produced by your solar panels to your utility company in exchange for reduced utility bills.
You May Like: How To Install Solar Panels Myself
What Are The Benefits Of Solar Panels For Your Home
Residential solar panels have gained a lot of momentum and popularity. But, the fact is there are several ways in which they can benefit you. For example, did you know that using residential solar panels can reduce or eliminate your electric bill?
This is because solar panels use an array of solar cells or photovoltaic units to capture the suns energy and convert it to electricity or gas. They are designed to withstand extreme weather conditions so that you never have to worry about experiencing power outages, rain, or shine.
Lets get into the discussion:
Solar Energy Can Be Very Location
You may have a roof thats ideal for a solar energy system and still not be a good candidate for solar energy. Why? Because to take full advantage of the benefits of solar panels, you need to have a roof or yard that gets consistent and direct daily sun exposure.
While photovoltaic solar panels still work on cloudy days, theyre most efficient when soaking up direct sunlight. So, if you live in a part of the country that tends to be pretty cloudy or grey, or if your roof is partly shielded by trees or by neighboring homes, you may not get the full benefits of solar to justify the cost of installation.
Additionally, the total savings that you can generate with solar depends on the existing cost of electricity in your area. If you live in an area with very affordable electricity, your utility bills are likely too low to justify the costs of solar. Solar performs best in areas where electricity is expensive, like California.
Also Check: How Do I Find Out Who Installed My Solar Panels
Solar Energy Pros And Cons
Looking at the advantages and disadvantages of solar energy from a homeowner’s perspective is an important step in the research process when considering installing solar panels for your home.
Here are a few that come up most often:
Main solar energy pros and cons
|Pros of solar energy|
|Insurance against rising power prices||Intermittent energy source|
|Solar is cheaper than ever||Manufacturing panels has some impact on the environment|
|See a return on your investment||Requires space|
|Not the best if you’re planning to move|
The argument for the average American homeowner to install solar panels for their home is now better than it has ever been, as the benefits far outweigh the drawbacks.
Lets take a closer look at each of these solar energy pros and cons.
Advantages Of Solar Panels
1. Renewable energy
Solar power systems derive energy from the sun. Panels on your roof help reduce carbon emissions and bring down our collective dependence on fossil fuels. By installing solar, youre not only reducing your carbon footprint, but also doing your bit to increase renewable energy generation when you export energy from the panels to the grid.
2. Reduce what you pay for electricity
You will meet some of your energy needs with the electricity your solar power system has generated. This should mean you will pay less for the power you use. How much you save will be dependent on the size of your solar system and your electricity usage.
Not only can you reduce what you pay for your electricity, but you can also get paid for any surplus power you generate by supplying it to the grid. This is called a feed-in-tariff.
3. Property value increase
If youre looking to sell your home, the installation of solar power systems can increase its value. Based on surveys, most Australians think that solar panels add value to a property, and estimates suggest that a 5kW solar panel installation could add around $29,000 to the value of a house. Thats a bright investment.
4. Low maintenance costs
Solar with Powershop
Powershop solar energy customers enjoy:
Thinking about installing solar but dont know where to start?
For more information about Powershop and Solar visit our solar energy page.
Read Also: Most Efficient Solar Panels 2021
Incentives From Federal State And Local Governments
Even at a reduced cost, a home solar system may not be easy to afford for many. To get more people on board, homeowners are being offered a variety of financial incentives like solar tax credits. The prominent among them are the federal investment tax credit , production tax credit . state tax credits, and cash rebates.
Federal tax credit or ITC was introduced in 2006 with the aim of boosting solar energy installations by individuals and businesses. It was meant as a short-term measure and is expected to be phased out after achieving the goal. However, due to popular demand, Congress has been extending the eligibility period of the incentive.
As of now, it is available until the end-of-year 2023, though the rate itself has been coming down from 30% until 2019 to 26% for 2020-2022, and 22% in 2023. So, if you are thinking of going solar, dont delay it too much.
How Sustainable Is Solar Energy
Solar energy certainly remains more sustainable than fossil fuels, which are limited in supply and release harmful greenhouse gasses into the atmosphere when burned. The limiting factor in the sustainability of solar energy overall primarily comes from a scarcity in the raw materials required to produce solar technology, the greenhouse gasses emitted during manufacturing, and the impact of panel disposal on the environment.
The use of solar power in lieu of grid power, however, offsets the emissions and carbon footprint of production within four years of use. Additionally, solar panels are ultimately recyclable, as theyre made from glass, metal and silicon. At present, we lack adequate infrastructure to collect and facilitate the recycling process on a large scale.
Compare Quotes From Top-rated Solar Panel Installers
Select a State To Get Started With Your No Commitment, Free Estimate
Recommended Reading: Solar Panels For Sale For Home
Solar Energy Pros And Cons In 2022
If youre looking to install solar panels on your home, youll find a wide range of information. This can make it difficult to figure out whether or not solar panels are the right fit for you.
To help you out, weve put together a conclusive list that weighs the pros and cons of solar.
Check whether a solar installation would be worth it for you with our calculator