Although solar power has been around for generations, it was not long ago where the technology was both expensive and inefficient. Early solar panels could only convert a small percentage of solar radiation to energy, and the cost per watt of the technology was well outside of the range necessary to bring about a good return on your investment.
Recently, however, solar has been making a comeback. More and more homeowners across the nation have begun to invest in solar technology. While some of this has been fueled by environmental concerns, the most common reason that homeowners are switching to solar power is because it has a better return on investment than at any time in recent history.
What Makes Solar a Good Investment
Solar panels have become a smart economic decision, in addition to their environmental benefits. Some of the many reasons that now is a good time to consider solar power include:
Less Cost Per Watt – The cost of solar installation has dropped dramatically when compared to what it was not that long ago. Thanks to improvements in solar technology, as well as competition from within the manufacturing world, solar panels can now convert more sun radiation to energy, and the cost to build the technology has gone down significantly.
Reduced Energy Costs – Solar has always been able to reduce energy costs, saving you money every month to offset some of your solar investment. But now that solar is more efficient, some homeowners are finding that during many months, their energy costs are near $0.
Government Incentives – Most states (and the federal government) provide tax breaks and financial incentives to homeowners that invest in solar, often in the form of tax credits or reduced tax liabilities. These rebates offset some of the upfront investment costs.
Net Metering – Utility companies provide incentives in the form of net metering, which credit you for energy that you create but do not use. There may also be additional rebates and incentives handed out by your local energy companies. Contact your utility companies to find out.
Improved Home Value – Perhaps the greatest reason to consider solar is because solar power installation is known to increase a home’s equity, often by as much as the homeowner invested in the upgrade. Home buyers are willing to invest in properties that already have solar installed. That means if you sell the home, the amount you invested will be returned.
It is these many advantages that make now a good time to invest in solar. In fact, even if you plan to eventually sell your home, the amount you invested into solar may help you obtain a higher sale price.
If you’re interested in investing in solar power installation and would like to learn more about the loans and lines of credit that may help you cover the costs, please speak with one of our loan originators today.