With rising electricity costs and concerns over climate change, installing a solar power system at home is an attractive option for many homeowners. A solar energy system can help cut electricity costs while also helping the environment. Let's take a closer look at some of the key benefits of going solar for your home.
Reduced Electricity Bills
Once the solar panels are installed, your home will start producing its own electricity from the sun's rays. Any excess energy produced during the day that isn't used can be exported back to the grid, earning credits that lower your electricity bills. Over time, your solar system will pay for itself through these savings on utility costs. Studies show the average homeowner can save $100-$300 per year on their electricity bills with a solar system. Those savings add up over the lifetime of the 25-30 year solar panels.
Helps the Environment
Installing solar is one of the most impactful ways homeowners can reduce their carbon footprint and help address climate change. Solar energy is clean and renewable, so your home won't be contributing greenhouse gases or other pollutants to power production. In fact, one solar panel has the potential to offset about 2 tons of carbon dioxide emissions over its lifetime – that's equivalent to planting over 500 tree seedlings! Going solar is a positive step for the environment both locally and globally.
Increasing Home Value
Homes with Home Solar Systems Demand have been shown to have higher property values than comparable homes without solar. In many markets across the U.S., appraisers and assessors are accounting for the value solar systems add. On average, installed solar increases a home's sale price by around 4% according to the National Renewable Energy Lab. This means a $300,000 house could see around a $12,000 boost in appraised value by going solar. This added home equity can be appealing when looking to sell.
Energy Independence and Resilience
By producing your own renewable energy on-site, you gain a higher level of energy independence and resilience in emergencies. In power outages from severe weather or other disruptions, a solar energy system with battery backup can keep critical home appliances running when the grid is down. This dependable backup power brings increased security knowing you have an alternate energy source to rely on.
Tax Credits and Incentives
The US federal government and many state and local governments offer attractive tax credits and other financial incentives to encourage homeowners to invest in renewable solar energy. At the federal level, the solar investment tax credit allows homeowners to claim a 26% tax credit on solar system costs in 2022. Many states provide additional incentives like rebates, property tax exemptions, and low-interest loans to further reduce the upfront cost of going solar. These incentives make the financial investment in a residential solar system even more worthwhile. Let's explore some of the major federal and state solar incentives currently available.
Federal Tax Credit
As mentioned, the federal solar tax credit remains at 26% of total solar system costs through 2022. Meaning for every $10,000 spent on a solar installation, a homeowner can claim a $2,600 tax credit to lower their total federal tax bill. For a typical $15,000-$20,000 system, this translates to a $3,900-$5,200 credit that substantially cuts the payback time. The tax credit is scheduled to gradually decrease each year until it reaches a permanent 10% rate in 2026.
State Rebates and Incentives
Many states offer their own funding programs and solar rebates above the federal credit. Some examples of popular state incentives include:
- California - Rebates of up to $4,500 depending on system size as well as property tax exclusions worth around $30,000 over 20 years.
- New York - Rebates of up to $5,000 and property tax abatements for solar system value over 15 years.
- New Jersey - Rebates up to $7,500 depending on installation type and income level.
- Massachusetts - Rebates up to $1000/kW with maximum of $10,000 total rebate amount available.
- Colorado - Rebates from $1,000-$4,000 depending on rated wattage. 40% corporate tax credit also offered.
It's always best to research the solar programs available specifically in your state to maximize rebates for going solar. Combined with the federal credit, financial support from state and local governments make home solar very affordable.
Choosing a Solar Installer and System
With so many reputable solar installers to select from, doing your research is important to find the best company and system design for your home. Here are a few tips when making your choice:
- Get competitive quotes from 3-5 local installers to compare equipment brands, warranties and projected performance.
- Look for experienced NABCEP certified installers with many successful past residential installations in your state/region.
- Aim for top-tier solar panel brands from established manufacturers like SunPower, LG, Panasonic or REC to maximize performance and lifespan.
- Determine if you want a roof-mounted or ground mount system based on your property. Roof is most common for homeowners.
- Decide between solar-only or solar+battery storage when choosing a system design if you want backup power.
- Verify estimated yearly power production, bill savings projections and all warranty coverage details in writing before signing a contract.
- Check online reviews or get referrals from satisfied customers of the installers you're considering.
With so many benefits, installing solar at home is an investment that delivers great returns in energy savings for years to come while also supporting renewable energy goals. Taking the time to plan your system and choose a trustworthy installer will ensure a smooth, successful solar installation project.
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