Financial Benefits of Going Green Via Solar Energy. According to a study, installation of solar panels increases the value of homes 4 times. That’s an impressive figure if we consider a case of a property worth $500,000. Well, solar panel installation will raise the price tag to $20,000 on the day of the auction. There are dramatic benefits of using solar energy to power your house. It not only substantially cuts down your electricity bill, it also helps you reduce the impact of climate change and lead you to live an exemplary sustainable life.
Energy cost is only going to increase over time unless you start generating your own power. If we look at the example of California, the electricity cost over last 30 years has increased at the rate of 6.7% per year. By installing solar panel for your household needs, you are going to lock in future energy cost for at least over several decades.
There is a cost involved in installation of solar panel on your roof top. But that’s one time. Having a solar panel installed is like having your own oil rig that produces electricity instead for you. The best part is, you don’t have to put it on the fire to make it work for you. Government seems to be quite optimistic about promoting solar energy. There are enough incentives and tax credits now available in many states. In certain states you can even deduct up to 50% cost on solar power installation. However note that these tax credits are not permanent and might expire or step down in many states over next decade. As the natural resource like coal continues to shrink over period, the cost of electricity will spike up making solar even more cost effective. By then government would have paid up to half the price for you, because you have been paying for these rebates with your taxes and electricity bills.
Some of the possible incentive program includes:
- Feed In Tariff program
- Cash Rebates
- Tax credits (Local and federal)
- Rebate programs
- Renewal energy credits
- Grant programs
- Property Tax Abatements
In many states there are provisions for net metering, means power companies are obliged to purchase the excess power you produced at the same cost you buy from them. Like for an example you go on vacation for a month, the electricity produced during that period gets credited to your account. If at the end of the year, you have used as much power as you feed back to the grid your electricity bills will be negligible. It is like running your electricity meter backward and saving you money. Many states even have feed-in tariffs, which pays you multiple credits for each unit of electricity fed into the grid from your solar panels. While we have discussed all the financial benefits of producing solar power, it should be noted that environmental benefits of solar power is always going to outweigh the energy used to produce electricity. So you are not only going to improve the health of your planet by installing solar panel but you are also going to improve the health of your wallet to.