When most of us think of investing, we think of putting a sizeable amount of our financial resources into something with the expectation there will be a return.
Installing a solar panel system on your home or business is one such investment. According to the solar experts at EnergySage, solar panel systems can generate an annual return of 10%-30% with an average breakeven time of 7-12 years. And, with a lifespan of 25 years or more, solar panel system will be providing a return long after your initial investment is paid off.
So, how does this work? Let’s take a look at all the factors you should consider when calculating a solar panel system ROI.
There are many incentives you can take advantage of that will drive down the initial cost of your system. Here are a few:
Tax Credits for Solar Panel Installation
Right now, the federal government is offering a 26% federal income tax credit for you to install a solar panel system on your home or business. This means you can deduct 26% of the total cost of purchase and installation off your federal income tax. For most Shine customers, this averages between $6,000-$7,000, which is money you can use to help offset the cost of your solar panel system.
In addition, some state governments also provide a similar tax credit or some other incentive for solar panel system installations. These amounts vary, but it’s worth checking to see if the state where you reside has any type of solar tax break. To find out what incentives might be available for solar in your state, visit the Database of State Incentives for Renewables & Efficiency website.
In some states such as Missouri, there are utilities that will pay you to install a solar panel system on your home or business. This is usually based on how many kilowatts your system produces. However, even in these states not every utility provides this incentive, and the amount of each rebate varies, so be sure to check with your electric provider and see if they offer any incentives for solar panel installation.
Zero Down, Zero Payments and Zero Interest for 12 Months
In addition to federal and state tax incentives, Shine makes it easier than ever to install solar on your home by offering zero down, zero payments and zero interest financing for the first 12 months you own your system. This allows you to enjoy the benefits of owning your own power right away without having to worry about a loan payment. Use the savings to take a vacation, make home repairs, or use it to help further offset the cost of your solar panel system.
Net Metering And Average System Lifespan
In many states, a net metering law is in place for solar panel installations that allows you to sell any excess energy you generate back to your electric utility. This involves installing a special bi-directional meter on your home or business and requires that your home remain connected to the grid. This is important because not only will it virtually eliminate your electric bill, but once your system is paid off, you won’t have an electric bill to worry about.
In addition, the average lifespan of a solar panel system operating a peak efficiency is 25 years. That means they still continue to operate after that time, but at less than 90% efficiency. Its long operating life means that your solar system will be paying you dividends long after your solar loan is paid off.
Increased Home Value
Did you know that installing a solar panel system on your home actually increases its value? According to a recent study by Zillow, homes with solar panels sell for 3%-4% more than those without. That’s because homebuyers value the low utility bills and energy efficiency that comes with owing a home solar system. In fact, a 2020 survey conducted by the National Association of Realtors showed that, “69% of REALTORS® said energy efficiency promotion in listings was very or somewhat valuable, and 77% said a home’s utility bills and operation costs were either very or somewhat important to clients.”
So, not only will a home solar panel system virtually eliminate your electric bill, it’s also a good investment.
When you begin to add up all the incentives that drive down the cost of your initial investment and combine those with the 3%-4% increase in home value and an average breakeven period of 7-12 years, it’s not hard to see that a solar panel system will provide a good return on your investment both now and in the future.
So, what are you waiting for? Call Shine today at 844-80-SHINE or visit us at Shine Solar and let us show you how easy it is to virtually eliminate your electric bill and become energy independent.
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