We all know by now that solar power is a clean, renewable energy source. We know that it’s better for the environment. But, it can also provide some serious economic benefits that we don’t always consider when thinking about solar energy.
1. Say Goodbye to High Energy Costs
The average home receives up to 5 1/2 hours of sunlight on a daily basis.
When adequate solar energy power systems are installed, this is more than enough to power its electronics efficiently. Even when clouds are present, natural energy solar panels continue to draw and store energy, ordinarily producing between 10 to 20 percent of the power that is received on a sunny day. A simple four panel life expectancy is roughly 20-30 years, so the energy savings will last quite a while.
The roof of a home takes a beating from the weather year round. Solar panels will extend a roof’s life by protecting it from snow or rain. Also, the sun is not heating up the roof which increases the temperature inside the house. Instead, the natural solar power energy is being absorbed and converted to precious electricity. This can provide your home renewable energy which reduces your dependence on the grid and eliminates the irritation of fluctuating costs when using fossil fuels.
2. Rebates and Tax Credit Incentives
Is solar energy important to the Federal and state governments? Definitely! They have realized that solar environmental benefits are endless and homeowners are rewarded if they have alternate energy homes. In the first year of installation alone, there is a tax break available that is 30 percent of the total cost of equipment and installation. This can be a sizable credit!
When you factor in the various local and state rebates, the initial costs can be paid for by up to 50 percent and more. There is also the benefit of Solar Renewable Energy Credits (SRECs) which are basically selling your overstocked energy to a company that trades in the energy market and is separate from the power company. It can generate a tidy sum to help offset the cost of having solar panels installed. These kinds of credits and incentives can be found almost anywhere you live.
3. Homeowners See Increased Resale Value
When solar home improvement systems are installed, the property value increases.
A home renewable energy system with numerous photovoltaic (PV) modules installed will help determine the PV resale bonus. Any potential home buyers can instantly see the value in purchasing alternate energy homes with a solar panel system already installed. Is solar power important to home buyers? Given the choice, savvy shoppers would much rather see their property investment provide financial returns from the day they move in.
According to the US Department of Energy’s Lawrence Berkeley National Laboratory studies, for every solar watt added you can see an average of $4 per watt value increase during resale. For example, a 3.1 kilowatt system could increase PV resale value by almost $18,000. Studies also show that most homeowners see an increased resale value of $5,911 per kilowatt that is installed. With the four panel life expectancy of 20-30 years, a homeowner will see a return on investment ten-fold.
4. Reduces Unemployment by Creating Jobs
Energy panel systems installations require manual labor, unlike the fossil fuel industry which are usually mechanically operated (ie. oil derricks, gas wells, etc.). In fact, the solar industry put more than 280,000 people to work in 2023. These jobs were all in manufacturing, the sales force and installations.
To put this in perspective, the coal industry in its entirety put around 45,000 people to work in 2023. Renewable energy could offer even more jobs with increased support from state and local communities as well as boosts to local businesses involved in solar power installations. Companies outside that realm will benefit from increased income from businesses and households combined.
5. Solar vs Fossil Fuels- Solar Wins
The sustainability of using fossil fuels such as natural gas and coal has been in question for years. Not only are they costly to acquire, it is uncertain how long the planet will be able to produce enough to satisfy the world’s energy needs. Is solar energy important to the planet? Yes, and when you add in the gradual increase in price on a yearly basis, it’s easy to see the advantage of solar power.
When you tap into the power of the sun and its unlimited energy, you do not have to worry about supply and demand or an oil spill, gas explosion or some other catastrophe to raise the price and charge you more for energy. The sun can’t be metered, shut off or used as a bargaining chip in order to raise prices. This can be a big incentive to make a solar home improvement.
6. Sell Excess Electricity Back to the Power Company.
There is a program called Net Metering which allows you to receive credits from the extra solar power energy that your system produces.
Commercial and residential customers who have solar power installed can send their unused electricity back into the grid and get compensated for it.
Net metering has been legislated in many states to encourage renewable energy use. Other states and communities may offer the incentive voluntarily. There is no set price for the credits, it varies from state to state. Although some utility companies believe this creates less profit, it actually provides more support for them during times when the electric demand peaks. Solar powered facilities also lower the strain on the grid allowing for less voltage loss farther away from the substations.
7. Create Stable Energy Prices.
The price of energy heading into the future can be affected positively with widespread use of solar renewable energy. Solar energy systems can function at a remarkable low cost, possibly even no cost after the initial financial investment is made. This will stabilize energy costs over time.
The price and initial investment of solar power energy has dropped and it is expected to continue in this direction. Renewable solar energy systems installation costs dropped 40% in the last decade, and will likely continue to go down.
Ultimately, statistics show that installing energy panel systems in a home creates many economic benefits, not only for the homeowner but even extending into the community and possibly the world, if you take into account the solar environmental benefits. Between lower energy bills, reduced use of fossil fuels and the value of alternate energy homes, choosing to power home solar is beneficial for all.
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