Advantages of Solar Power
Consider solar panels as a simple yet powerful upgrade for your home, offering remarkable benefits. If you’re contemplating reducing your environmental footprint while cutting down on energy expenses, this page will guide you through the advantages of choosing solar power for your home.
Affordability of Solar Energy
When considering solar energy, homeowners acknowledge the remarkable 99% decrease in solar module prices over the past four decades. With no ongoing operational costs and escalating energy expenses, transitioning to solar power in 2023 presents increased savings, making it an appealing choice for those seeking financial benefits.
Escalating Energy Cost and Inflation
Choosing solar power serves as a protective measure against the impact of escalating energy costs. In 2022, the surge in national average utility electricity prices by nearly 16% from September 2021 to 2022 brought energy inflation to the forefront of household concerns. As traditional utility rates continue their upward trajectory, opting for solar energy locks in your electricity rate at a lower fixed rate.
Cleaner Alternative
Solar energy serves as a cleaner alternative due to its significantly reduced greenhouse gas emissions compared to fossil fuels during electricity production. The process of harnessing solar power generates minimal to no emissions, contributing to a cleaner environment. Solar panels convert sunlight into electricity without producing air pollutants or greenhouse gases, such as carbon dioxide, sulfur dioxide, or nitrogen oxides, which are commonly emitted by burning fossil fuels like coal, oil, or natural gas. As a renewable energy source, solar power plays a pivotal role in mitigating climate change and reducing overall environmental impact by offering a sustainable and cleaner way to meet energy needs.
Durability of Solar Panels and Warranty Coverage
Solar modules now boast extended longevity, aligning with panels’ longer lifespan. Leading manufacturers like REC, SunPower, and Panasonic offer warranties guaranteeing energy output for 25 to 30 years. Solar systems typically self-amortize in 10-15 years, providing owners with a decade or more of cost-free energy under warranty. Panels don’t become obsolete post-warranty; instead, their energy production diminishes gradually. Given solar tech advancements, warranties may further extend.
Federal Solar Tax Credit Remains at 30% Till 2032
Following the passage of the Inflation Reduction Act of 2022, the solar tax credit has been established at 30% spanning from 2022 to 2032.
For numerous homeowners seeking cost-effective solutions, this emerges as a pivotal reason to consider adopting solar power in 2023. The Federal Solar Tax Credit, also known as the Investment Tax Credit, stands as the primary incentive for transitioning to solar energy.
Although various state and local administrations present their individual incentives, the Federal Solar Tax Credit is accessible to homeowners who own their solar systems and possess income tax obligations.
This tax incentive permits proprietors to assert 30% of their total solar system expenditure until 2032. Additional guidance on claiming the federal solar tax credit can be found here.
Increase in Home Value
Installing solar panels can significantly enhance the value of your home. According to Zillow, homes equipped with solar panels command a 4.1% premium in sales compared to homes without such installations. This equates to an extra $18,052, based on the national median home sales price of $440,300 in the second quarter of 2022. Zillow’s research highlights that 80% of potential homebuyers prioritize energy-efficient features when considering a purchase.