Should You Invest in Solar Panels in 2023
By: Eric Huesca, SEO Content Writer
January 12, 2023
Solar panels (a.k.a PV panels) are devices that convert light from the sun, composed of photons, into heat or electricity that can be utilized to power electrical loads. This energy generated by the sun that is converted into electricity is known as solar energy.
Solar is one of the most prevalent means of renewable energy, primarily due to low maintenance, low purchasing costs for equipment, and its abundant source.
As the electricity demand continues to rise amidst climate change concerns and consumers are looking for cleaner, more sustainable, and alternative sources to power their homes, cars, and businesses, solar proves to be a popular option.
Beautiful home with solar panels.
Benefits of Solar Energy
For the majority of people, there are significant benefits to going solar. Here are the primary benefits of solar energy that allow them to be in substantial demand.
1. Cut down your electricity bill
One primary benefit of solar panels is that they significantly minimize your electricity bills. As soon as you install solar panels, they’ll generate power and cut down your electricity bill.
2. Minimize your carbon footprint
One of the most significant environmental advantages of solar panels is they’ll help to minimize your carbon footprint. Solar panels produce renewable, sustainable, and clean energy. On the other hand, purchasing electricity from the grid comes from a combination of sources, mainly fossil fuels.
3. Better for the environment
Once a solar panel is installed, it will generate renewable and clean energy for your home. It also minimizes air pollution since no pollutants are associated with solar power generation. Enhanced quality of air results in better public health outcomes.
4. Add value to your home
Homes that have solar panels installed are far more valuable. Once it has been paid for, solar panels will deliver environmental advantages and savings for several years. Lifetime savings can equate to $50,000+.
5. Renewable energy
Solar power is renewable. This means that it is an infinite source of energy that will never run out. Hence, as long as the sun is shining bright in the sky, Earth is at no risk of running out of solar power. Moreover, in one hour, the sun produces ample energy to power the entire planet for a year.
6. Get paid for additional solar
Solar power is renewable. This means that it is an infinite source of energy that will never run out. Hence, as long as the sun is shining bright in the sky, Earth is at no risk of running out of solar power. Moreover, in one hour, the sun produces ample energy to power the entire planet for a year.
7. Little maintenance
Once your solar panel system is installed, it hardly requires a lot of maintenance or cleaning. The inverter might require replacement after 10-15 years, but this is the only extra expense you will need to bear throughout the life of your system.
8. Longevity
If you purchase well, your solar panels will last 25 years or more. The best solar panels usually come with a 25-year product warranty.
9. Use at night
A solar battery installation enables you to use the solar energy generated throughout the day at night
10. Energy independence
Combined with a battery, solar panels can direct you towards becoming more energy independent. These solar batteries operate by storing the surplus solar power for later use. Hence, this minimizes your dependence on the power grid.
It’s quite likely to produce ample energy to power your personal requirements. With the addition of a battery to your solar panel, you can also benefit from backup power and use solar power during the night.
What Is Investing?
As more and more governments, companies, and individuals become concerned about the worldwide climatic changes caused by carbon emissions, there is an increased interest in renewable power as a part of a socially responsible investing portfolio.
Amidst that, the most frequently cited form of alternative, renewable, clean, and sustainable energy source is solar power. Solar investing might appeal to individuals who expect renewable energy to become more prevalent in the forthcoming years since it is vastly deemed an exciting and feasible alternative investment to fossil fuels.
Regardless of its reputation as a luxury item, solar has proven to be one of the best investments for 2022 and a guard against inflation for most homeowners. Besides increased home value and energy savings, solar also offers something that every other investment provides, and that is a performance warranty.
Solar investing for beginners comprises investments in numerous aspects of the solar energy supply chain. For instance, you can invest in companies that manufacture large-scale solar panels. It might even mean investing in a renowned firm that hopes to create smaller solar products for household use.
Solar fixes your electricity costs at a low rate for 25+ years. It is a good investment for homeowners in general as it stops your electricity rate in a period of rapidly escalating energy costs. Moreover, there are various solar loan options for making minimal to no down payments.
Regardless, the more money you put down, the more significant the return on investment will be. As of September 2022, the national average grid electricity price was 16.7 cents per kWh, which is approximately 16% from 2021, while solar’s average price on solar.com was around 7 cents per kWh after applying the 30% federal solar tax credit.
A $0 Down Solar Program is a fantastic and easy way to switch to solar. It is a solar loan program that was founded to aid homeowners in transitioning to become owners of their own sources of energy.
In this specific program, you can install solar and pay no upfront for your solar system. Besides, no payments are necessary until the installation is complete. When looking for a trustworthy place to get solar panels, Solgen Power is the first name that should come to your mind.
There’s no open market to trade in solar power directly. Residents may earn some money from the power generated from their solar panels by putting that energy back into the grid. However, it usually takes several transfers like that to recover the solar panel installation cost.
The stock market offers ways to invest in solar power through ETFs, indexes, and shares of organizations involved in renewable energy – ranging from production and installation to materials and technology.
Why Invest in Anything
Indeed, solar is an excellent investment and delivers multiple economic advantages, such as a greener business/household footprint, lower energy costs, significant independence from fluctuating energy markets, and contribution to our energy system’s overall decarbonization.
It is an excellent way to put underutilized assets such as car park awnings and commercial rooftops to work. Solar can enhance your green credentials, positively affecting staff and customer acquisition, retention, and brand reputation. In addition, it delivers on the triple-bottom-line performance of a company.
Solar is great for the planet, its people, and company profits, making it an essential investment for households and companies, along with numerous benefits. Some of the benefits that come from investing in solar energy are:
● Sustainability
Solar energy is considered renewable since the world will not run out of sunlight. In contrast, fossil fuels like natural gas and oil have a limited supply.
● Environmental Impact
Compared to fossil fuels, solar energy has a low environmental impact. It has a low carbon impact and does not damage the land as oil drilling and fracking can.
● Independence
The United States has specific parts with ample sunlight, creating the likelihood that solar energy can help it become less dependent. Moreover, it can even become energy independent from various other oil-producing countries. You might even be able to install solar panels on your house and become energy independent as an individual.
● Growth potential
Since we’re still in the initial stages of solar power, there’s significant potential for growth. This is what attracts the majority of investors to the industry. However, that growth prospect does not come without risks.
Who Can Invest
Consumers have various financing options to choose from when choosing to go solar. In general, a solar system can be installed at a minimal total cost than a system installed using a solar lease, loan, or power purchase agreement (PPA).
Solar loans can reduce the system’s upfront costs if you prefer purchasing your solar energy system. In the majority of cases, loan payments per month are smaller than a standard electricity bill, which can help save money from the beginning.
A solar loan works much like a home improvement loan, and some jurisdictions offer subsidized solar energy loans with interest rates below the market rate, making solar more affordable. Purchasing a solar power system qualifies you for the Solar Investment Tax Credit (ITC).
In December 2020, an extension of the ITC was passed by Congress, offering a 26% tax credit for systems installed for the period of 2020 to 2022 and 22% for systems installed in 2023. This tax credit will expire in 2024 unless it is renewed by Congress.
PPAs and solar leases enable consumers to host solar panel systems that solar firms own and buy back the electricity produced. Consumers become a part of agreements that enable them to benefit from lower electricity bills without monthly loan payments. In the majority of cases, this means investing zero money to go solar.
Solar leases entail fixed payments per month calculated using the estimated electricity produced by the system. With a solar PPA, consumers agree to buy the energy produced at a governed price per kWh of electricity generated. With these two options, you’re not entitled to tax perks as you do not own the solar power system.
In the United States, the state and federal government is helping to facilitate the growth of solar power consumption by offering rebates and tax credits. These incentives encourage Americans to switch to solar for their energy requirements.
In August 2022, Joe Biden passed the Inflation Reduction Act (IRA), one of those provisions in the government’s perspective for a clean energy economy consisting of setting aside approximately $400 billion, including tax credits, for spending on solar and other kinds of renewable power.
This massive boost for the solar industry might back consumers and companies alike. One of the clean energy initiatives includes having 950 solar panels installed by 2030. More solar panels mean more significant power production for electrolysis to produce hydrogen, which is also a clean energy source.
Investing in Solar Panels
One of the best ways how to invest money in solar panels is through grants. It can significantly affect your budget if you check to see if you qualify for any form of subsidy while installing solar panels. Here are what some solar panel investments look like:
1. Monocrystalline PV Panels
Monocrystalline panels are efficient since they’re composed of one silicon piece, letting the power flow easily through the cell. Consequently, they’re also the most costly type of solar panel.
2. Polycrystalline PV Panels
Polycrystalline PV panels are not as efficient as monocrystalline panels as they’re manufactured by fusing together multiple silicon parts, making it difficult for the electricity to flow through the silicon. They’re cheaper as they are relatively easy to manufacture.
3. Thin-Film PV Panels
Out of the three, the thin-film PV panels are the most inefficient type yet the most affordable type of PV panel. They’re a fantastic option for those who are interested in flexible solar panels.
Usually, you don’t require permission to install solar panel systems. Still, there are exceptions to every rule. Hence, it’s vital to examine whether you require planning permission. Once all the details are in place, the order for the solar system will be placed, and you will need to select a time for the solar panel installation.
When your solar panels are ready, it’s time to deliver the solar cells to your location. Usually, you’ll be informed regarding the solar panels’ location, delivery status, and expected delivery time. As a general rule of thumb, the solar panels are delivered some days prior to planning the actual installation.
In most cases, it takes a half or full day to install the solar cells, depending on the number of solar panels. During this period, you will need to be available since the solar panel installers must have access to the power plant of the building. After the installation, an electrical installer will switch on the electricity.
If you generate excess solar energy and find it hard to manage, you can also sell this surplus solar energy. It serves as an excellent source of income during the summer months that make up for the additional electricity consumption during winter. Now, if you’re all set to invest in solar panels and wish to get a free quote, you’ve come to the right place.
At Solgen Power, we can help you come across the ideal solar package that best matches your needs, no matter how big or small your home is. Click here to see if you can sign up for the $0 Down Solar Program at Solgen Power in just minutes.
Share this Blog:
Recent Blogs
- What is Solar Energy?
- 5 Benefits Of Going Solar
- How Can Solar Save You Money?
- Guide to Green Energy Tax Credits and Incentives for Homeowners
- 7 Budget-friendly Sustainable Upgrades for Your Home
- Why is Alternative Energy Important
- Why Solgen Power is the best choice for residential solar?
- How Do Solar Panels Work?
Links
Solgen Power is a solar energy contractor that sells and installs solar for homeowners. Solgen Power has been recognized by INC. 5000 as one of the fastest growing companies in the nation. Solgen Power has grown nationwide and continues to provide excellent customer service to homeowners.
