How a Solar Home System Can Boost Your Property Value
A solar home system can significantly boost your property value. In fact, according to a 2017 study, homes with solar sell for 3.74% more than comparable non-solar homes.
But the up-front cost can be high, making it a long-term investment better suited to homeowners than renters. Thankfully, leasing options can reduce your initial outlay.
Reliable Power Supply
Solar energy systems generate electricity without relying on the traditional utility grid. Typically comprising PV panels, an inverter, and solar batteries, an off-grid solar system can reduce your home’s dependence on fossil fuels, while ensuring a stable energy supply and saving you money.
If you’re planning to install a solar home system, it’s important to understand the technology and equipment involved. Solar panels convert sunlight into DC electricity, and they’re backed by lengthy manufacturer warranties. The racking that mounts the panels to your roof or land will normally come with a 10-to-20-year warranty, and your inverter may also feature a longer guarantee.
The other major piece of solar equipment is the battery that stores energy and provides power when the sun isn’t shining. These batteries have to be recharged, and they’ll eventually lose their ability to hold a charge over time. The good news is, most manufacturers guarantee a certain number of cycles for their batteries.
In the case of a solar energy system, your installer will take your average local weather patterns into account when sizing the system and estimating its electricity production. This ensures that your payback won’t fluctuate much from year to year, even SOLAR HOME SYSTEM if you live in an area with a lot of cloudy or snowy weather.
Lower Electricity Bills
Many homeowners go solar because they want to save money on their electricity bills. With energy prices on the rise, having your own home system is a smart choice to reduce or eliminate your electricity costs.
Most states have laws in place to compensate homeowners for the excess energy generated by their solar systems and exported back to the grid. This is called net metering. In addition to the credits accumulated on your utility bill, you may also have to pay standard charges for customer service, meter reading and the distribution of power through overhead and underground lines.
If you have a battery storage system, it can help minimize these costs by automatically reducing your utility rate usage during peak hours. The size of your energy savings will vary from one home to the next, based on your specific electricity consumption and solar panel system size.
Most of our energy comes from non-renewable resources that are limited and expected to be depleted in the future. Having your own solar energy system can give you peace of mind that you will have a reliable, sustainable source of power for as long as the sun shines.
Increased Home Value
A major home improvement project like solar panels is an excellent way to increase your property value. In fact, a recent study by Zillow found that homes with solar power sold for 4% more than similar non-solar homes in the same area. This is due to a number of factors, including sustainable energy, lower electricity bills and increased home curb appeal.
If you do plan on selling your home in the future, you can reap even more benefits when you choose to own your solar energy system instead of leasing it. This allows you to transfer the existing lease with the solar company to the new buyer, which can significantly increase your resale value.
Additionally, a new owner can benefit from the 30% federal investment tax credit (ITC) on your solar system. This is a great incentive for buyers and can help your home sell faster, especially in hot markets.
Keep in mind, though, that your solar system will only add to your resale value if it is new and in good working condition. An older or damaged system will not attract potential buyers, and might deter them from making a purchase. Keeping records of your system’s installation, warranty information and power bills that show before-and-after proof of energy savings can be helpful for your real estate agent when it comes time to sell.
Reduced Carbon Footprint
Solar power is a clean energy source, which means it doesn’t produce any carbon dioxide or other greenhouse gases. This helps reduce your carbon footprint by limiting the amount of fossil fuels you use to power your home.
A kilowatt-hour of solar electricity creates less than 50g of CO2, which is around 20 times less than the emissions of coal. Additionally, the manufacturing process of solar PORTABLE POWER STATION panels produces far fewer greenhouse gasses than fossil fuels, as well as other waste products like lead and glass.
Depending on how many solar panels are installed, your system can offset the equivalent of up to 13,000 pounds of CO2 per year. Even though you won’t be able to eliminate your carbon footprint completely, this is a great start and will contribute to a better future for our planet.
While you can’t get free solar panels, you can significantly reduce the upfront cost of going green by taking advantage of today’s best incentive: the Federal Investment Tax Credit. This credits 30% of your solar panel system installation costs, which you can claim at tax time. This is different from a deduction, as you’ll receive your credit as an actual refund if it doesn’t exceed your total tax liability. For most, this will be enough to cover the entire installation cost and give you a positive return on your solar panel investment in seven to 12 years.
