Written by Davey Newlove
Solar energy is no longer a budding, new technology — it has fully arrived. With incentives like the federal income tax credit (ITC), millions of homeowners have been installing solar panels on their homes. When making the decision to install solar panels, it is prudent to do research to find the right installer and materials. While doing your research, it is important to also look at the pros and cons of solar energy. Let’s take a closer look and break things down.
SOLAR ENERGY CAN HELP LOWER YOUR ELECTRIC BILL
Do you ever get frustrated by high power bills in the summer and winter? Whether by sending power to the utility company for credits or by running power directly from the energy generation, solar panels can help drastically reduce your power bill. Customers can see their power bills reduced by a little or a lot, depending on their total energy usage and amount of solar installed. Over the life of a solar array, your system won’t just pay for itself, you will save more money than you spent for the solar installation. With solar panels becoming cheaper and utility rates continuing to rise, turning to solar energy makes a lot of sense for millions of customers.
NOT EVERY HOME IS GOOD FOR SOLAR INSTALLATIONS
In an ideal world for solar installers, every home would have great roof space to install solar panels. Unfortunately that’s not the case, as some customers have roofs that don’t get enough sun because of shade from trees while other homes just aren’t facing the right way. There are also some roofs on older homes that are made from materials that can make a solar installation very difficult. Because of this, there may be some customers who want to install solar panels, but it’s just not a feasible option for them to do so.
SOLAR INCREASES THE VALUE OF YOUR PROPERTY
If you’re a homeowner I have great news for you. When you install solar panels on your home, the value of your home will increase too! Homes that have solar panels installed are seen as upgrades, and customers in many states are willing to pay premium prices for these properties. Homeowners that have made the choice to go solar have seen their property increase in value by around 4%. According to the office of Energy Efficiency and Renewable Energy,
“Additionally, there is evidence homes with solar panels sell faster than those without.”
If you are looking to sell your house and your house has had solar panels installed, be prepared to see it sell quickly! Solar energy is growing in popularity and people want in on the action.
HIGH INITIAL COST FOR SOLAR INSTALLATIONS
Although the price of solar panels has dropped over the last decade, most customers will spend at least $15,000 for a solar installation. This can be a daunting price tag for many. If customers don’t have that much stashed away, there are options to finance a solar installation. Financing is also much preferred over the leasing of a system, which while becoming more common offers the least attractive rate of return with savings that are 70-80% lower than those of system owners.
FINANCIAL SUPPORT FROM THE GOVERNMENT
In late 2020 the federal government extended the solar ITCat 26% for two years. The federal tax credit is a dollar-for-dollar reduction on income taxes owed to the federal government. This makes them more valuable to the taxpayer than a write-off. The 26% tax credit is on the net cost of your solar system, can be applied on your taxes for the year that your system was installed, and has a lifetime carryover provision: In other words, if you don’t have enough tax liability (owe or have paid income taxes) to use the entire credit in the first year, any remainder “rolls over” to the next year, and however many more may be needed to use it all. If you use a tax preparer, make sure to let them know that you installed solar panels so that you can take advantage of this great benefit!
SOLAR ENERGY IS AN INTERMITTENT ENERGY SOURCE
Solar energy is a clean way to produce energy. Unfortunately, solar panels do not produce power all the time. There are a few variables that cause this. The first is that solar panels generally do not produce energy at night. The second is that shading from trees or other foliage during certain times of the day can cause your solar panels to produce less energy. The third is that the intensity and angle of the sun changes throughout the year which can affect how much energy your solar panels produce. The fourth reason is that cloudy and rainy days can affect your energy generation. All these factors are good to keep in mind when deciding to go solar.
SOLAR ENERGY IS ENVIRONMENTALLY FRIENDLY
Having sustainable renewable energy is vital for the future of our planet. Taking sunlight that hits the earth and turning it into a source of energy does not deplete the energy of the sun. Energy created by solar panels does not emit any greenhouse emissions, which is good for our planet. There is a small carbon footprint that comes from making solar panels, but that is made up by solar’s “carbon offset” in a matter of just 2 years of operation, and this carbon footprint is much less that the one created from coal or natural gas. The energy created from solar panels is clean energy!
There definitely are pros and cons to solar energy, but the pros far outweigh the cons. If you feel that the time may finally be right for you to go solar, contact us today to set up a consultation!