Solar energy is a great way to provide your home with clean energy, but the initial cost of installing a solar system can seem like a considerable investment. You may be wondering if solar is a wise investment for you.
Read on for some valuable information you can use to see if solar is the right choice for you!
How much do you pay for your electricity?
The best indicator to see if an investment in solar is worth it is to look at your monthly bill. Rates in most California cities are pretty high, and most of us like to run our air conditioners because our summers are hot and long. There are some great online calculators that you can use, such as Project Sunroof on Google or Energy Sage. Both can help you determine if a solar system is a good investment for you.
If your monthly bill is higher than average, an investment in solar may be a good idea for you, since you would end up seeing a return more quickly than homeowners with a smaller bill. If you are already thrifty with your electricity, solar is still a good idea! You won’t see your system “pay for itself” as quickly.
What about the federal tax credit?
Well, you’re in luck! While the federal tax credit percentage is decreasing, you can still benefit from it. It currently sits at 26%, so that is quite a savings on your tax return. The great thing about this credit is that if you can’t use the full credit the first year, the rest rolls over to your next year’s tax return, so you don’t lose it. Remember that this rebate only goes to you if you buy your panels. Leasing a solar system gives your tax credit back to the leasing company. You can read more detail about it here. The savings of the federal tax rebate, on the other hand, can help to install solar panels a worthwhile investment.
What about long term savings?
Well, there are other ways in which your solar panels “pay” you back!
- The average home with solar gains a 4.1% return in value when the house is sold. In fact, nowhere in the nation saw a decline in the worth of a home due to solar panels.
- Depending on how you pay for your panels, you will get a more significant return on your investment. If you can pay cash, the savings are immediate, and over time it adds up to thousands more in your pocket. If you finance your panels, it takes a bit longer to see the savings. Leasing your panels gives you a smaller return since you don’t own the equipment. You still save on your monthly electric bill, but there is no return on your investment when you sell your home.
- Get multiple quotes, and don’t always assume that a huge company will be cheaper. Many times a local company like Semper Solaris will give you a better deal, and you are supporting a family-owned business.
If you would like to learn more, give us a call, and we can set up an appointment to evaluate your home.