Solar power generation has come a long way in the past fifty years, becoming more efficient and cost-effective for homeowners. What had been somewhat experimental or luxury is now accessible to everyone, opening the door for cost-savings and environmental consciousness. If you’re considering adding solar to your home, learn what financial incentives and savings can help make solar a reality.
1. Leasing Packages
Solar energy presents a significant cost-saving opportunity by making solar upgrades affordable to all. To invest in a solar energy system out of pocket can mean thousands of dollars in up-front costs. By leasing solar panels, you can begin to reap the reward of monthly cost savings without the initial cash outlay.
Solar leasing companies can also help ensure you’re getting the right system and installation for your home. They’ll assess the amount of sunlight and where it gets peak exposure to determine the right size panels for your home’s square footage. The result is the right-sized system that’ll efficiently power your home for its energy demands at an affordable monthly price.
2. Layered Rebates and Tax Credits
You may not be able to stack coupons anymore, but you can stack rebates for your new solar system. Federal tax credits for solar energy reduce the taxes you owe to the federal government. There are requirements for how much of your system you can claim under the current rules which go through 2035.
Local and state rebates can be enjoyed following the installation of your system, reducing upfront costs, and increasing your savings. Your local sustainability or energy efficiency office can help connect you with the opportunities available at your address. Additionally, your utility provider may offer credits on your account when you install solar, as it helps reduce their demand.
3. Net Metering Deals With Your Utility Provider
Electric utilities have long generated power from coal but regulations require them to diversify their supply and reduce emissions. Power plants are decommissioned or repurposed toward more sustainable approaches, but these shifts are costly. Many utilities boost their energy-efficient profile by offering net metering agreements to customers generating their own energy.
With a net metering agreement, homeowners sell excess electricity back to the grid, reducing their energy bills. During periods of cloud cover, homeowners may tap into grid-supplied power, but these agreements can flatten those costs. When you’re considering installing a system, assess the current demands of your home and plans for the future. If you plan to add on or install energy-using systems like a hot tub, extra solar capacity is wise. The extra energy you generate now can be sold back to the grid and will be accessible to you when you need it.
4. Solar Renewable Energy Certificates
Regulations on energy are significant, with government, environmental, and business pressures culminating in a dynamic conversation about our energy future. As these regulations shift, utilities often are required to have a diversified portfolio of energy sources. However, the investment, complexity, and timeline to comply with these requirements can pose a challenge. That’s why utilities need solar-generating homeowners on their side to stay above board.
In these situations, solar-generating homeowners earn solar renewable energy certificates or SRECs for the solar power they generate. Then, these certificates can be sold to utilities that then help them meet renewable energy mandates. This helps the utility comply and reduces its capital investment while offering the homeowner a cash incentive. With the right agreement, your solar system can pay for itself or bring in cash flow.
5. Improved Home Equity
An efficient home is among one of the most attractive components along with aesthetics and functionality. How we live in our homes and what it costs day-to-day matters. If your solar panels keep operating costs low and the interior comfortable, potential buyers will be interested. Homes with energy-efficient upgrades and systems typically have higher values and sell faster than standard homes.
While you may not invest in a system for your would-be buyer, consider the benefits you can enjoy at home. Day-to-day, you’ll enjoy reliable power at a low cost, but the value of your property can increase, too. If you decide to take a home equity loan, your home’s value may experience a boost thanks to your solar investment.
6. Reduced Monthly Costs
Even when you account for the additional payment toward your solar leasing agreement, you can expect to save. Take into account the lease payment, energy bill, and incentives and you may end up making money with solar. Use the extra cash flow to reinvest in your home, achieve financial goals, or save for a well-deserved vacation. You’ll be able to relax knowing that your energy smart upgrade is great for the environment and your bottom line.
Gain Energy and Financial Independence
By generating your electricity, you reduce your reliance on the grid and your risk of losing power. Avoid rising energy rates, escape inflation, and maintain control of how and when you power your home. In many cases, your energy-generating function can be an asset to your utility, giving you an advantage and opportunity. Leverage your solar asset to protect your home, increase its value, and improve efficiency while reducing your carbon footprint.
