Most people who are looking into solar power do so to save money on their electric bills. Yes, it can also feel good to know that you’re helping out the environment. At the end of the day, though, most people get into solar power to save cash. It’s time to ask an uncomfortable question, though. Does solar power actually save me money?
Solar Power Systems are a Long Term Investment
The truth is, going solar in a home, or even a business building, is a long-term investment. In a sense, you’re paying an amount up front that you’d spend on your electric bill for the next 8 years to not have to pay a dime for the following 25.
One of the best things about this investment is that you’ll start seeing results from the first month. Let’s say that you paid 12K for your home solar energy system. That 150-dollar electric bill that you get every month will be reduced to virtually zero by the end of the first 30 days on solar power. This is taking into account that you installed a system that can power your house completely with solar energy alone.
In addition, installing solar panels in your home can provide a tax benefit. The government is planning to give people back 30% of what they spent on their solar power systems. That means that after the first year, that 12K investment was really only $8,400. All of this reduces the time that you’ll have to wait to see an actual return on your investment.
What Happens if I Don’t Live in the Home Long Enough?
It’s great that the person who lives in a solar-powered home won’t be spending much money on their electric bill. What keeps many people from going solar, though, is the thought that they won’t live in that house long enough to get a good return on their investment. This is a valid concern, but let’s run the numbers.
According to Zillow, houses that run on solar energy increase their overall value by about 4.1%. The average home price in the country is currently $417,700. That means that adding solar panels to a home could increase the average house price by a total of $16,708. With the tax benefit that you can claim from the installation, that leaves you with about an $8,000 profit. That’s not counting the months that you potentially lived in that house, paying little to no money on your electric bill.
Does Going Solar Save Money?
We started by asking whether solar power actually saves me money. The answer is no! Solar power can actually make you money. Is there a catch to all of this? There are a few things that you need to keep in mind when going solar. Number one, make sure that you’re working with a certified company that’s going to install quality equipment that’s built to last. Once you’ve decided to go solar, it may be a good idea to call your account and make sure that you file in time to get that 30% tax break.
If you follow these steps correctly and install a good solar energy system, it could be one of the best investments you’ll make, particularly in the home improvement category. The truth is that most upgrades to a house don’t necessarily add monetary value to the property. If you were to spend that same 12K on a new bathtub and marble floors, you probably won’t be getting that investment back if you sell the house. That’s not the case with a solar energy system!
