Why Solar Panels are An Investment
By: Eric Huesca, SEO Content Writer
February 2, 2023
Stirrings of an imminent recession and inflation slowly and gradually gnawing away at cash have ultimately led people to seek safe places to invest their valuable money and move past the post-pandemic economic outbreak. Regardless of its outdated reputation as a luxury item, home solar is a fantastic investment and a guard against inflation for the majority of homeowners.
Besides helping homeowners save substantial money on energy bills, solar power boosts your property’s value and offers a performance warranty – which only a few other investments offer.
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Learn all about the financial and economic benefits of investing in solar panels for your business or home as we talk about why solar panels are a smart investment decision.
Solar power is any kind of power generated by the sun. It’s created by nuclear fusion in the sun; the fusion occurs when protons of hydrogen atoms aggressively crash into the core of the sun and fuse to generate a helium atom.
Solar energy is the cleanest, most sustainable, and most renewable energy source available. In addition, it’s the quickest and most efficient way to start saving money, minimize your carbon footprint, raise your home’s equity, and enhance your environmental impact.
Solar energy allows you to benefit from increased energy independence as you can safeguard your savings from fluctuating utility rates and your community from the hazardous and toxic pollutants associated with fossil fuels.
Thanks to the $0 Down Solar Program, solar power has become more accessible than ever. The primary uses of solar power comprise the following:
- Solar photovoltaics (PV) for electricity
- Solar heating
- Solar water heating
- Solar lighting
- Solar ventilation
- Concentrated solar power
Solar is a good investment for business owners and homeowners in general as it puts a halt on your electricity rate in a time of rapidly increasing utility costs. In several ways, it is like purchasing a house.
Still, the only difference is that while home ownership protects you from increasing rent prices and fixes your housing payment, solar fixes your energy costs at a considerably low rate for 25+ years.
The national average grid electricity price, as of September 2022, was 16.7 cents per kWh (kilowatt-hour) – which is up by almost 16% from 2021 – whereas the average price of solar was somewhere close to 7 cents per kWh after the 30% federal tax credit for solar energy was applied.
It all comes down to the question,
Why is Equipping and Fueling your House with Solar Panels Cheaper than Purchasing Grid Energy?
The answer primarily narrows down to the scarcity factor. Unlike utilities that continue generating a significant deal of power from a depleting supply of fossil fuels, which is a finite resource, solar is driven by an infinite supply of sunlight.
When you decide to go solar, you’re purchasing and investing in an entire equipment and not fuel. Once the equipment is paid for, your job is done, meaning you have locked in and secured your cost for the system’s life!
Solar energy is essentially deflationary because there is a free and unlimited fuel supply. As technology advances, the cost of solar equipment diminishes.
On the other hand, fossil fuels are essentially inflationary due to their limited fuel supply governed by a tight-knit group of people who possess them. With the depleting supply of fossil fuels, energy is harder to extract, and new infrastructure is required to access and transport it.
There are various reasons why so many homeowners are going solar. Regardless of whether your motivation behind going solar is environmental, financial, or economic, solar provides numerous benefits to homeowners.
Suffice to say, investing in solar is undoubtedly a win-win for you, your family, and the environment.
Save Money
The majority of people who go solar on their businesses or homes primarily do it for the economic benefit since solar panels can significantly help save money on energy costs in the long run. A solar panel uses the sun’s energy to produce electricity.
The cost of solar energy is less than that of electricity generated in another way. Hence, as the energy prices go up at the utility companies, the solar savings amount increases.
Some customers can drastically minimize or practically eliminate their energy costs using solar. Here are 3 primary reasons to consider going solar from a financial benefits viewpoint.
1. Going solar significantly cuts down or even eliminates your electric bills
Electricity costs can significantly add up and comprise an enormous portion of your monthly expenses. Luckily, with the help of a solar panel system, you can produce free power for your system’s whole 25+ year lifespan.
Even if you do not generate 100% of the power you use, solar will continue minimizing your electric bills, indicating you will save a substantial sum of money.
2. Going solar helps prevent increasing energy costs
Each year, the utility rates continue to escalate across the entire country. So, investing in a solar panel system now gives you the opportunity to lock in the price you pay for electricity today to protect against increases in utility costs in the future.
3. Going solar nets you an excellent ROI
Indeed, solar is an excellent and worthwhile investment. The average American solar buyer observes an enticing return on their investment (ROI) of 20% or even more, with the majority of solar systems paying for themselves numerous times over their decades-long lifespan.
Raise Equity
According to Zillow, homes equipped with solar panel systems sell for nearly 4% higher on average than homes without. This is a good reason why you should consider investing in solar energy, resulting in an increased value of roughly $9,200.
A home is a significant and valuable investment, and naturally, one that you wish to maintain and boost the value of.
Still, before you begin updating the kitchen, revamping the rooms, renovating the bathrooms, or re-siding your exterior walls, you must consider that solar-powered homes have been shown to sell faster, earn higher, and draw more attention on the national real estate market.
The energy savings offered by solar panel systems convert into increased value for your home. According to the National Renewable Energy Lab, every dollar saved on electricity via solar boosts property value by $20, indicating an ROI of 20:1. As a result, these savings equal more significant profits when you sell your home.
Buyers like to view solar power since it signifies they do not need to worry and stress as much about electric costs. Home appraisers mainly value a solar power system or above the cost of installation and parts.
Best of all, your solar panel system won’t depreciate as the remodel of your room will. Instead, your home solar panel system will boost your property’s value for many years to come. Moreover, as green homes become more popular amongst buyers of all ages and income groups, your potential ROI solar panel investment with the system will only increase.
Reduce Carbon Footprint
As per the Environmental Protection Agency (EPA), the power sector is responsible for 27% of the carbon emissions in the United States of America. Power plants that run on fossil fuels tend to create carbon emissions and significantly contribute to the local air and water pollution in areas nearby the power plants.
With a solar panel system installation, you can drastically minimize your own individual environmental carbon footprints. When installing a solar energy system on your property, you can prevent buying carbon-emitting electricity from the grid.
Hence, it’s worth investing in a clean, renewable, and sustainable energy source like solar and pulling electricity directly from the solar panels.
Even when solar power is not being used directly, you are equalizing the need for carbon-releasing by putting your solar power onto the grid. Finally, solar is an excellent investment for our planet’s future.
An average-sized solar power system in a home can eliminate 3-4 tons of carbon emissions every year, which is equivalent to planting over 100 trees.
As a clean energy source, solar energy does not generate harmful emissions of greenhouse gasses that can be hazardous to the environment and us. Hence, your financial investment can be deemed an investment in future generations’ safety and health.
Government Incentives
If you are finally considering switching to solar, you’ll be amazed to see the vast array of solar panel investment opportunities available to you.
One of the key reasons why solar is such a smart investment in the present day is because there are plenty of tax credits and government incentives for solar that can help balance the initial solar panel installation cost.
● Federal tax credit
Homeowners can enjoy a 30% federal tax credit on their solar panel system’s cost with no cap on the credit. This helps your solar system be more affordable. Moreover, the federal tax credit is applicable to future years too.
● Tax deductions
If you own a business or operate your business from home, you can claim your solar panel system as a tax deduction, just like any equipment.
● Solar Renewable Energy Credits (SRECs)
Solar power can be an excellent and robust financial choice, from savings to incentives. However, government incentives are just one fragment of the story. You can also benefit from solar panel cost savings for your system’s entire lifetime, regardless of whether you take advantage of the incentives.
After switching to solar, you will instantly observe energy savings. The money you save depends on how much energy you use, how much space is allocated for your solar panels, and your current electricity costs.
Long Investment
Generally, solar panels are a modern and sustainable long-term investment with a life expectancy of roughly 25-30 years. Still, this does not indicate they stop functioning or generating electricity after this time.
It only means that the production of electricity has declined by a significant amount, according to manufacturers. Solar panel manufacturers meticulously test the systems to withstand severe weather conditions like hail, heavy snow, rain, and high winds.
Since solar panel systems do not contain any moving parts, they don’t call for routine maintenance either. All these factors add to their extended lifespan and can be considered a major plus point.
Most customers find they can earn all the money they’ve invested into their solar panel system in just a matter of a few years. They typically come with a service life of 25 years or more with proper maintenance. This makes for an excellent solar power long-term ROI.
The ROI on solar is higher than other sustainable energy sources, promising 20-30% ROI. With more extended payback periods and an attractive and long-term solar panel return on investment, solar is one of the safest kinds of investment.
Conclusion
Many people don’t have an idea about how earthquakes happen. Most of them think it is the movements of the inner rocks/tectonic plates that cause earthquakes. This is the partial truth. Solar energy can also be the reason for earth-shaking and group earthquakes (if the intensity gets bigger). Yep, it’s true.
It’s no secret that solar rays reaching the Earth support life. In addition to these beneficial rays, the sun also sends solar winds at a great magnitude as a result of different coronal activities. When these winds hit the Earth, the surface shakes up a little. Most of such movements go unnoticed. The problem occurs when the mass eruptions leave the sun for the earth.
When these mass eruptions are “bombarded” on the Earth, earthquakes happen. You can feel these earthquakes and they can even take down power grids. Furthermore, these eruptions can interfere with the satellite’s working as well. So, the whole world can get affected by them.
So, what makes mass eruptions from the sun dangerous? Well, these eruptions contain a lot of charged particles. When the positively charged ones or protons get in touch with the Earth’s surface, it shakes up strongly.
So, that’s all about earthquakes and whether they can affect solar panels or not.
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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.
