Are solar panels worth the investment?
The many benefits of solar panel systems are numerous, but how can you be sure that they are worth purchasing for your home. We’ll help you decide by explaining the pros and cons of home solar panels.
SOLAR ENERGY – ADVANTAGES FOR YOUR HOME
LOWER ELECTRICITY FEES
According to Fundera’s 2020 report, telecommuting employees have increased 173% from 2005. As more people switch to working from home, electricity consumption and utility bills will continue to rise for many households.
Solar panels can be added to your home to offset rising energy costs. This will allow you to save money while working remotely.
HIGHER HOME RESALE VALUATION
Rooftop solar panels can increase the resale price of your home with a higher return on investment (ROI). Zillow states that solar panels can increase the home’s selling price by 4.1%.
A 15-year, eight-state study conducted by Lawrence Berkeley National Laboratory found a premium in home prices between 0.78 and 1.05 per Kilowatt (kW).
LOWER TAXES
The Federal Solar Investment Tax Credit (ITC) reduces your federal tax liability by a dollar equivalent to 26% of the cost of your solar power system. The full deduction can be taken when the system is online or over time. All credits that are not used will be carried over to the next tax year, as long as there is a solar ITC.
On January 1, 2023, the tax reduction will be 22%; in 2024, it will drop to 10% for commercial projects and to 0% on residential projects.
MINIMAL MAINTENANCE FEES
Solar power systems are very low-maintenance. Your homeowner’s insurance will cover any damage caused by storms or other natural disasters. The warranty should also cover any repairs or replacements.
To understand the warranty of your manufacturer, make sure you check it. Freedom Solar, for example, offers a 25-year warranty on our SunPower panels.
REDUCE ENVIRONMENTAL IMPACT
Solar power is a way to harness the sun’s power to power your home and business without causing any local pollution. The majority of electricity generated in the United States is still produced from fossil fuels. Coal and gas account for 59.6% of the country’s net sourcing.
You can contribute to a cleaner environment by installing solar panels and sourcing renewable energy from your home. Solar panels can also be used for 40+ years, and they are easily recycled once they have reached their end.
INCREASED ENERGY INDEPENDENCE
Solar energy can generate your electricity, making your household more self-sufficient and removing you from dependence on grid electricity or energy companies. Combining a home solar array with a high-capacity battery backup or generator lets, you generate your energy and store excess energy for emergencies.
DISADVANTAGES OF SOLAR ENERGY IN YOUR HOME
UPFRONT COST
The cost of your system will depend on the type and brand of solar panels that you choose and the size and incentives that will offset your out-of-pocket cost. There may be state and local solar rebates available to lower your cost.
Your total investment will be reduced if you only have cash. However, it will take longer to repay. While financing can lower or eliminate your out-of-pocket expenses, it will also reduce your lifetime savings.
PAYBACK TIME
It is a long-term investment in solar. Whether you choose to pay cash or finance the system, it will take time for you to see a return. Once you reach the break-even point, your solar investment will continue to bring you savings for many decades.
What if you don’t plan to live in your home during the payback period. Solar is still a great investment if you don’t plan to move within the next one or two years.
Not ideal for every home
Not all homes are good candidates for solar.
To make the installation cost worthwhile, you need to have a certain amount of free sunshine. The amount of solar energy that can reach your home will depend on your location and your roof’s direction (south facing is the best).
It doesn’t matter if your roof is new or old. However, it must be in good shape to allow solar panels to be properly installed. It would be best to wait to have major roof repairs done shortly before considering solar.
Solar can also be made difficult by your roof type. Composite shingle is the most popular roof type, and it’s easy to install. Standing seam metal and clay tile roofs are more complicated. This will result in a higher cost so you will need an experienced installer. Ground-mounted solar might be an option for roofs that are not compatible with solar panels.