Our planet is in an energy crisis. With so much innovation and so much technology, we need a way to power billions of homes and businesses around the globe.
But unfortunately, most of the energy we use to do this on a daily basis comes from non-renewable sources, such as coal or petroleum. Not only are we destroying the planet to source these materials, but we are then burning them and releasing fossil fuels in the process, leading to global warming.
But when it comes to clean energy solutions such as solar power, there are economic benefits along with environmental benefits that you need to know. So you can power your home with solar energy and not only help save the planet but also save your personal financial situation by saving thousands of dollars each year.
Wondering what economic benefits you can expect from residential solar power? Keep reading to discover how you can save a lot of money at home.
Reduce or Replace Your Electric Bill
The biggest economic benefit of solar panels is the fact that they can either completely eliminate, or greatly reduce your electricity bill. With rising electricity costs, this utility bill costs most homeowners and renters thousands of dollars per year.
But with solar panels, you can generate all or most of your electricity on your own.
Most homes will find that they still need to draw electricity from their utility provider at certain parts of the day and year. That’s because solar energy needs to be used the moment that it’s generated.
Unless you have a solar battery installed, you can’t store excess energy to be used later. So at nighttime, when the sun is long gone, you’ll likely begin drawing electricity from the power grid.
Also, during cloudier, darker seasons, such as the winter, you may generate less solar energy and rely a little bit more on the power company. But in general, most homeowners can expect to lower their electricity bill by at least half.
Avoid Peak Electric Draw Times
In many areas, the cost of electricity can fluctuate depending on the season and the time of day. In the summer, for example, peak electric usage will be from 2:00 PM to 6:00 PM when outside temperatures are at their highest.
This is when all of the residents in the area will turn down their air conditioners, putting a massive strain on the power grid. This can often lead to power outages across the city.
During these times, power companies and local governments try to discourage people from using power during these times. One way of doing this is by increasing the price of electricity for those hours.
However, the benefit of having solar panels at your home is that these hours generally coincide with peak sunshine hours. So your panels will generate the most electricity at the times when you need it most.
This way, you can avoid surge pricing altogether and run your air conditioner for free in the heat of summer. So while everyone else’s bill is going up, your’s is going down.
Net Metering; Generate Electricity and Make Money
Net metering is an incredible program that can not only save you more money on electricity but may even earn you some extra money each year.
When your solar panels are installed at your home, your installers can connect them to your local power grid. This will let you send electricity back to your power company.
But why would you do this? Most solar panels will generate excess energy during certain times of the day. For example, at peak daylight hours, when the sun is high and bright, most people are away from home at work and school.
The house isn’t using much energy, but the solar panels are generating a lot.
Instead of wasting this energy, the net metering program allows you to send it back to your utility company, where they will sell it to other residents. In exchange, your utility provider will give you credits.
Then, when your home needs to draw electricity, such as at nighttime when the sun is gone and your solar panels are taking a break, you can pull electricity from your utility provider, using up the credits you’ve earned.
If you’ve earned more credits than you use by the end of the year, you’ll typically receive a check from your utility company for the remaining amount.
Solar Incentives Make Installation Possible for Most
There are tons of rebate programs and solar incentives for new solar installations. One of which is the federal solar tax credit, where you can receive a 26 percent tax credit on your total solar installation cost when you file your income taxes.
Some states and cities also have additional programs you can take advantage of as well.
Increase Home Equity
The benefits don’t stop there. Since most solar energy systems are permanently installed, doing so can increase the value of your home. As a result, your home equity will improve, increasing your net worth.
In fact, you can likely use your home’s equity to make energy-efficient upgrades such as installing a solar energy system, so you don’t even have to use cash.
Getting Started – How to Go Solar Today
Solar sounds too good to be true. But the benefits are real, the incentives are there, and the cost is going down every year. Ready to get started?
The first step on your solar checklist is to head outside and take a look at your home. Most homes have panels installed on the roof.
Does your roof receive enough sunlight? Or are there trees blocking it? You may need to trim your trees before installing your panels. Consult a professional, local solar panel installer to begin your journey today.
A Win-Win Situation; Environmental and Economic Benefits
Solar energy is a win-win situation. It’s the best energy solution for our planet since it’s using a completely renewable resource; rays from the sun. But it also provides us as individuals and as a nation with tons of economic benefits.
There’s no reason to wait, consider going solar today.
Looking for more tips like this? Check out the rest of our blog today to keep reading.