Making the switch to solar energy can seem like a lot of work and confusion, but there are actually plenty of perks to doing so, especially in terms of finances. Here are six financial benefits of switching to solar energy.
1. Rebates and Tax Credits
The federal government has a vested interest in green initiatives such as the transition to renewable energy. As a result, there are several rebates and tax credits available as incentives for people to make the switch. You’ll receive a federal income tax credit for the year you installed your solar panels when you file your taxes. This credit returns 30% of your equipment purchase and installation costs to you. Rebates at the state level, called SRECs or Solar Renewable Energy Credits, further lower costs and increase returns.
2. Falling Solar Costs
As it’s gotten more commonplace, solar energy infrastructure has also gotten cheaper to install and use. You can purchase and install solar panels and a solar battery, among other things, at much more accessible rates for your office or home. There are also local solar usage incentives available in many places on top of federal tax credits, which can help lower the cost of installation and upkeep even further.
3. Insurance Against Price Increases
In contrast to the falling costs of solar power, traditional electricity prices are increasing. Switching to solar can help your energy costs even out. It can help buffer your energy bill even if you don’t switch over to solar completely. Your solar panels will allow you to produce some or all of your own energy to power your home or office. In some places, you may even be able to send extra energy your solar panels generate to the grid and trade that energy with your utility provider, thus increasing your savings.
4. Lower Energy Bills
It almost goes without saying, but solar power can significantly reduce your energy bill, even if you aren’t using only solar power or aren’t able to trade extra power you generate with your utility provider. If you live in an area where net metering is offered, for example, you can use the energy you produce with your solar panels to offset your energy bill. Solar energy can also reduce energy bills in unexpected ways. Since panels are typically installed on rooftops, they’ll absorb sunlight that would normally beat directly onto the roof, converting it to usable electricity as well as cooling the house by keeping the roof in shadow.
5. Increased Resale Value
Solar energy will allow you to start saving money from the day your panels are installed, but a lesser-known benefit of getting them installed, particularly for homeowners, is the increased resale value they can bring with them. Someone buying a building that already has a solar power system installed will be able to avoid all the costs and other resources required for the initial installation. As a result, many potential buyers are willing to pay higher prices for a home or other building with so much extra value to it. Solar panels also have a hidden benefit. They can be an extra layer of protection for a building’s roof, increasing the roof’s integrity and lifespan and, as a result, lowering roof repair and maintenance costs.
6. Investment Returns
If you’re economically minded, you can find even more ways to increase the returns on your solar investment than tax credits and lower energy bills. Many solar panel owners use their energy systems as a source of income, selling their excess energy to utility providers or taking advantage of net metering. Taking advantage of these and other investment return options will enable you to expedite the speed at which you pay off your investment costs and start to see revenue from your solar panels.
While it may be more expensive and require more investment in terms of funding and infrastructure updates, the returns on your investment can bring your company a huge financial payoff in the long term.