You probably already know how residential solar power systems are not only great for cutting energy costs, but are also more environmentally friendly than fossil fuels.
But did you know that they can actually help you make money, save money for decades, and enjoy improved economic security?
Let’s take a closer look at how each one works:
#1: They can help you make money
Investing in a residential solar power system helps you make money not only by giving you access to all sorts of government incentives, but also by helping increase the value of your property.
In terms of government incentives, you’ll get access to things such as:
- Residential Renewable Energy Tax Credit
If you have your residential solar power system installed on or before January 1, 2023, you’re entitled to a 26% tax credit based on the Consolidated Appropriations Act of 2021, which also covers fuel cell, geothermal heat pump, and small-scale wind turbine installations.
But even if you have your system installed at a later date, you’ll still receive a 22% tax credit—and this is regardless of the condition of your home. Whether you live in a pre-existing property or a newly constructed one, you’re covered by the provisions of the act.
- Performance-Based Incentive (PBI)
As the same suggests, this incentive involves payouts based on how much energy your residential solar power system generates over a set period of time.
In some states, the payouts are released every month; in others, you’ll have to wait anywhere between one and five years. Either way, though, you’re still earning regular payments from a one-time expense.
The only catch is that if you want to get paid a lot, you will have to really take care of your system and keep it in peak condition.
- Solar Rebates
Selling any excess energy your system generates back into the grid is another one of the many government benefits you could enjoy when you have a residential power system installed in your home.
Just like with PBI, if you want to enjoy sizable rebates, you’ll have to make sure your system is operating at 100%—or near 100%—capacity.
In terms of increasing your property’s value, on the other hand, the actual numbers would ultimately depend on where it is located.
Properties in New York, Orlando, and San Francisco, for example, typically see a 4.4-5.4% increase. Those in New Jersey, on the other hand, see a jump of up to 9.9%. Depending on the average price of the properties in your area, these numbers could translate to tens of thousands of dollars added to your home’s price tag.
#2: They generate long-term ROI
Another lesser-known benefit of residential solar power systems is that most modern options are designed to work at peak capacity for at least 25 years after you have them installed. And even after that time, they should still work at about 85% capacity for years to come, allowing you to still enjoy sizable cost savings without having to worry about spending on a replacement.
Of course, the actual lifespan of your solar power system would ultimately depend on factors such as:
- The manner in which it is installed
- The climate in your area
- How it is maintained
You’ll know it’s time to get a replacement when you’re no longer getting the amount of energy you need from your current system or if it suffers irreparable damage at some point during the course of its lifespan.
#3: They can help provide improved economic security to everyone
The third and final lesser-known benefit of residential solar power systems we’ll take a look at today is how they help the country become less dependent on imported fossil fuels—that cost whatever the countries that supply them decide they do—for energy.
This means that with each installation, we, as a nation, take one step closer to enjoying improved long-term economic security.
The fact that even the US federal government has invested over $100 million to make solar energy more cost effective for everyone highlights just how promising the technology is and how much the country as a whole stands to gain from it.
Ready to find out more about getting a solar power system for your home?
Book a no-obligation free consultation with one of our solar panel consultants today! Just tell us what you need and we’ll help you find the best and most cost-effective option for your home.