Solar panels harness the sun’s abundant energy to generate clean energy. Investing in solar panels can significantly reduce your home’s carbon footprint. Power companies have to buy some of their electricity from renewable sources, thus saving even more by selling the energy their panels generate.
A solar installation can allow residential and commercial units to become energy independent without relying on the grid. By converting sunlight into solar energy at home, less energy is consumed from the grid, saving on traditional electricity methods.
In recent years, the rising cost of electricity and the declining cost of solar panels and systems have made investing in solar power easy for homeowners, industries, and many commercial businesses.
What could be the possible return on investment (ROI)?
The amount of money you save by investing in solar varies depending on where you live, the benefits available from your state government, and the type of system you are installing. Also, how much you save per month depends on the size of your solar system, your home’s power consumption, and other factors.
Also, as your utility company’s electricity costs increase, so does the amount of your solar energy savings. This means that the savings generated by your solar panel system will only increase over time as energy prices rise. The more your electricity rates increase over time, the more value you get from your rooftop solar system. The payback period eventually decreases as your ROI increases every year.
An incentive for the investment
The best incentive for solar is the Investment Tax Credit (ITC), which allows you to deduct 26% of the cost of a solar installation from federal income tax. There is no cap on its value, but your taxation authorities will determine if you can take full advantage.
What do the numbers say?
For example, if you buy a $21,000 solar power plant for your home, 26% of the $21,000 will be offset by a federal tax credit through 2022, bringing the net worth to $15,540.
On average, homeowners can save about $1,400 a year on their bills after switching to solar. More recently, the National Renewable Energy Laboratory (NREL) found that for a home with a solar system, every $1 in energy saved increases the home’s value by $20.
To understand whether or not to use solar energy, you must compare current electricity rates with potential savings. Your current electricity bill is the most critical factor in determining how much you save by installing solar power.
In conclusion, Solar panels are becoming more efficient, affordable, and reliable, saving energy risk-free and recouping your investment. A solar-powered system can quickly increase your return on investment by adding value, savings, and convenience to your home. Solar power can reduce your environmental impact, offset your monthly energy bills, and increase your energy independence.
Even if you are not generating 100% of your energy usage, solar will reduce your bill, saving money. Investing in solar energy can significantly reduce your electricity bills, saving you a lot of money in the long run. While solar panels may seem like a significant investment, homeowners will save money on their energy bills.