Solar panels are one of the best investments you can make as a homeowner. Not only does solar save you money on monthly utility bills, they also increase property value.
In fact, experts estimate that solar panel installation increases your property value by more than 4% on average. On a $300,000 home, this means you can recoup approximately $12,000 at resale.
Read on to learn why solar panels are a smart investment for your home. Explore topics like how renewable energy can reduce your monthly utility bills and the cost of transitioning to solar.
Solar Panels Cost
Before diving into return on investment, you need to know more about the cost of switching to solar. The upfront investment cost varies depending on a number of factors.
For starters, the state that you live in is a significant cost variable. A 6kW base system runs nearly $18,000 in Wisconsin. However, the same system costs roughly $14,000 down in North Carolina.
Solar is more prevalent in warmer states with stronger sun activity. This means there is greater competition and a solar panel company offers more competitive pricing. With greater demand, they can order parts in bulk and achieve economies of scale.
Labor rates also vary from state to state. Blue Raven Solar in North Carolina is going to pay their workers a different rate than a similar company in California.
There are also federal and state tax incentive programs to consider. While the federal tax credit remains the same, some states are more generous than others in pushing solar.
Material quality and home size are two other variables to consider. The larger your home, the more solar energy that the panels need to capture.
Solar Return on Investment
Now that the costs are well-defined, it is time to talk about return on investment (ROI) potential. For most, the primary ROI driver is the reduction in monthly utility bills.
Your electricity bill is going to plummet by leveraging off the sun’s energy instead of the electric company. Over a 30-year mortgage, it is estimated that switching to solar energy reduces utility costs by $19,000.
Increased property value is another area where homeowners see an ROI. The property value increase varies by state. Some states, like New Jersey, see property values go up as much as 10% with solar.
Some consideration needs to be for environmental concerns as well. Climate change is costing the world trillions as extreme weather events intensify and their damage becomes more expensive.
By doing your part on green, renewable energy, you are helping to reduce carbon emissions. The fight against climate change yields an ROI for your children and grandchildren’s generation.
Switching to Solar Is Worth It
The bottom line is that switching to solar power is worth the upfront cost. You will save money on monthly utility bills and increase your property value. At the same time, switching to solar power has a profound impact on the environment.
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