People frequently question themselves, “How does it feel to have solar panels?” which results in failing to recognize the significance of solar technology. Solar power has clearly become the green energy trend. Homeowners around the United States have put solar panels on their rooftops, allowing them to receive the full benefits of solar energy. Aside from the obvious financial benefits, there are several more compelling reasons to switch to solar energy instead of fossil fuels.
And if you’re a business owner, electricity might be one of the most expensive overhead bills for you. Being dependent on the commercial power system also means you’re vulnerable to changes in electric rates. Unexpected price rises bring unpredictability to your business, particularly your cash flow management. Perhaps it’s time to lighten your load and investigate how solar panel installation might help your company.
Solar panels are quickly becoming a popular alternative energy source in the United States. You’ve probably heard that Fortune 500 firms like Walmart and Intel are switching a large portion of their buildings to solar energy. You might not believe that’s cheap for small or medium-sized firms at first sight but think again. Solar panels have come down in price and now provide tremendous benefits to businesses like yours.
You’re probably wondering, “How can I benefit from solar panels?” as well as “Are solar panels worth the investment?” Well, you’re not the only one who has these concerns. The best method to answer them is to consider the advantages of using solar energy.
Most people who install solar panels on their homes or businesses do so largely for financial reasons. From a financial standpoint, there are four major approaches to considering solar:
Going solar significantly decreases, if not eliminates, their utility expenditures. Electricity bills might account for a significant amount of their monthly spending. A solar panel system generates free power for the entire 25+ year lifespan of your system. Even if they do not produce 100 percent of the energy they utilize, solar decrease their electricity costs, resulting in significant savings.
Going solar can help them avoid rising energy prices. Electricity rates across the country continue to rise year after year. They may safeguard themselves against future rises in power bills by investing in a solar energy system now.
Going solar raises the value of their property. This one is simple: solar-powered homes sell for more than non-solar-powered properties. And it’s simple to see why when they realize that solar allows them to cut or eliminate their power bills: wouldn’t they rather live somewhere where they don’t have to pay monthly utility bills?
They get a high return on investment by going solar. Solar is, in the end, one of the finest investments they can make. The average American solar purchaser receives a 20 percent or higher return on investment (ROI), with most solar panel systems paying for themselves many times over the course of their decades-long lifespan. Try generating that ROI from stocks!
The fact that solar energy systems have few moveable elements is one of the primary reasons why they require less continuous maintenance. Moving-parts technology is always susceptible to components rusting, breaking down, or wearing out as a result of prolonged usage; these systems require regular repair to keep everything running smoothly. However, most solar-powered systems have few (if any) moveable parts, which means less frequent maintenance and a lower likelihood of internal component repair or replacement.
Most homeowners value minimal maintenance systems since they don’t want to think about it. It simply sits there, absorbing the sun’s energy and energizing their lives.
Installing solar panels in a home not only helps to lower current monthly power costs but also possibly improves the property’s value by up to 4.1 percent more than comparable homes that do not have solar panels.
When assessing how much a homeowner’s property value increases as a result of installing solar panels, the National Renewable Energy Laboratory might be of assistance. According to their analysis, every additional dollar saved on energy bills (due to their solar system) adds $20 to the overall value of their property.
This rule of thumb changes based on a variety of circumstances, including the location of their property, the size of the installation, and the value of their home.
The exact figures vary by property and installation, but according to a recent study, each 1 kilowatt (kW) of solar added increases the resale value by $5,911. A tiny 3.1 kilowatt (kW) system may contribute $18,324 to the value of a medium-sized home in California, for example.
As you scale up, the property value benefits of solar energy only get better. Installing 5 kW of solar panels increases the market value of a medium-sized property by an average of $29,555.
It should be noted that these figures only pertain to current housing and utility pricing. As power costs rise (and they will), the benefits of solar energy climb accordingly.
Furthermore, adding solar panels not only helps them obtain a better asking price, but also helps their property sell far faster than those without solar systems. Going solar might be a major benefit for homeowners who want to sell their property quickly.
If you own a business with a solar panel, the most significant advantage of switching to solar electric power is likely to be tax breaks. The transition to sustainable, clean, and efficient solar electricity is supported by all levels of municipal, state, and federal government. They give certain helpful tax breaks and financial aid programs to express their support.
The following are the key tax advantages that solar owners get when they switch their business to solar power:
Federal Investment Tax Credit (ITC) of 26 percent: Anyone who installs a solar power system in their house or company receives at least a 26 percent rebate on the total cost of their solar power system. For example, if they invest $20,000 in solar panel installation, they are eligible for a tax credit of $5,200. Furthermore, the scheme has no cap, so they may spend as much as they want in solar energy while still receiving the 26 percent refund. However, after 2022, the benefit amount is reduced. The ITC will be reduced to 22% in 2023 and then to 10% thereafter.
Accelerated Depreciation: Every owner of a solar panel is eligible to accelerated depreciation on their solar energy equipment. This is accomplished through a separate federal government program known as the Modified Accelerated Cost-Recovery System (MACRS). MARCS allows customers to write off their complete solar panel system in the first year, although standard equipment depreciation tax benefits are generally spaced out over the life of the items. This boosts their cash flow and capacity to finance their solar power installation dramatically.
Solar Renewable Energy Credits (SRECs): This solar energy alternative allows companies with solar panel systems to recoup equipment installation expenses by utilizing the energy generated by their system. One SREC is equal to 1,000 kWh according to government standards. They require power utilities to participate and acknowledge every SREC generated by their solar equipment.
They do not have to qualify for these tax benefits by installing a specific type or size of solar panel installation in their business. They are government-guaranteed incentives designed to stimulate the transition to solar energy regardless of the type of system installed.
Give Forme Solar a call at 714-694-2262 to see if living with solar makes sense for you.