Jason RothmanApril 25, 201813290
It is given that if you install a new door or countertops in a home that you will increase its value, but so does installing solar panels, plus solar panels saves you lots of money as well as increasing your home’s value.
Installing solar panels is like a long-term investment to modernize and increase the value of a home, and not just a way to get free power, although eventually the free power does come.
There are many factors to think about when figuring the cost of solar panels in your home, but the three things we know for sure is that installing solar panels will increase its value, those solar panels will pay for themselves in a few years, and they save you hundreds of dollars a month on your electric bill. Over time, the savings increase year after year.
It is hard to say exactly how fast the return happens because there are so many factors to think about when installing solar panels beyond the size of the home and how many people are using the electricity. These factors include the amount of direct sunlight the home receives, cloud cover, temperature, and weather.
Someone who lives in a cloudy climate with snow in the winter is going to get a different output with the same solar panels than a person in a warm sunny climate. Someone in a colder cloudy climate is going to need more panels than the person in the sunny climate to get the same energy output. On the other side, if it is 100 degrees out and the homeowner uses the air conditioning all day, while heating a pool, and leaving the television and lights on all the time, they are going to need more solar panels than people who use less energy.
There are plenty of federal and state programs that can help homeowners offset the cost of installing solar panels. No matter what the cost or what state the homeowner lives in, everyone can save money on the cost of going solar.
The biggest incentive is the Federal Solar Tax Credit, also known as the investment tax credit (ITC) which allows you to deduct 30 percent of the cost of installing solar panels. That means for every $10,000 spent on solar panels there is a tax deduction of $3,000. This credit applies to both residential and commercial solar systems and there is no cap on the amount that qualifies for the tax credit. This is a big reason why both business and residential solar continues to get more popular year after year.
When congress approved its spending bill back in 2016, the members included an extension of the ITC until 2022. The 30 percent tax credit is also in effect through 2019, in 2020 the credit drops to 26 percent, 22 percent in 2021, and down to a 10 percent deduction in 2022. So even if you don’t install solar panels this year, you can install them next year and still offset the cost by deducting 30 percent of the cost on your taxes.
Individual states and cities also have incentive programs that offset the cost of going solar. For example California has 212 different programs and incentives for homeowners who install solar panels, and it’s not just California. All 50 states have solar incentive programs, and states that don’t have many programs still have some available. Even Louisiana, which is where many oil and gas companies are headquartered have 28 solar incentive programs available. Some of them are tax credits, and some of them are a break on the rate of electricity when they do need power from the grid.
The point is no matter what state you live in, there are plenty of ways to offset the cost of installing solar panels.
In addition many installers work with banks to finance solar panel installations and many banks are willing to finance the cost of going solar. Even though making the jump is expensive, you don’t have to pay for it all at once. Think of it like a reasonable car payment. Unlike a car, when the solar panels are paid for, they increase the value of the home and they continue to save you money of a long period of time. Cars just lose value and cost more money to run.
Solar panels are a part of the landscape all over the planet. The cost pays for itself and adds value to everything. Real estate agents are more willing to sell a house that has solar panels installed on the roof, and potential home buyers are are willing to pay more for a house that is solar enabled because they know the cost will pay for itself.
The return on investment on installing solar panels gets better every day, and as it becomes ubiquitous, the cost will continue to decrease, while the benefits of installing solar will only increase.
We at HaHaSmart are here to answer your questions about installing solar panels for your home. Contact us at 916-873-8612 and ask to speak to a professional who can help with your solar panel needs.
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