When moving into a new home, there are a few investments to think about doing to improve your new home. Kitchen upgrades or bathroom renovations might jump to mind first, but to get the best return on your money and make the home as affordable as possible while you live there for the foreseeable future, you should consider environmentally-minded renovations in addition to cosmetic or aesthetic improvements.
Hand-in-hand with reducing your impact on the environment, installing solar panels onto your home can reduce your energy bills, raise the value of the property, and make the home more attractive to buyers who want to buy a house with solar panels already installed.
Any renovation will take time and an initial upfront investment, but the installation of solar panels doesn’t have to. Here are a few reasons you should consider installing solar panels onto your new home before you tackle any other renovations.
Reduced or no energy bills
The most obvious and most enticing benefit to potential buyers about a solar panel installation is the potential to completely eliminate your home’s monthly electricity bills. If you live in a large home, or use a lot of electricity each month, having the ability to harvest and supplement your own energy usage instead of having to pay full price to run the things you use every day makes life a lot easier – no more dealing with massive energy bills!
On the sustainability aspect of solar panels, reducing your reliance on fossil fuels or other types of environmentally damaging energy production methods is immensely important in today’s age. Having solar panels installed on your home will reduce your home’s carbon footprint for years to come, even for its next tenants and will provide value through numerous financial and environmental benefits over many years. It is unlikely that the panels would be removed in their service live (25+ years), making the house more sustainable into the future.
ROI is around 25 percent
Solar panels pay for themselves over time. While you might have to spend a little to install them and get them running, the money you’ll save in energy will eventually be enough to cover the cost of the initial investment. In addition to this, it is estimated that the average return on investment on solar panel installation is around 25 percent in immediate home value.
This means that after you’ve started saving on your power bills each month, you will also be able to make a profit off of their installation as they add 25 percent of their initial cost to the value of your home on average almost immediately. It is a great investment that can see instant power savings, but when the time comes to sell the property you will also reap the benefits of the solar installation’s value in your final sale price. All of this is before rebates and federal tax credits!
Rising energy costs are a thing of the past
The thing about solar energy is that the sun isn’t exactly going anywhere anytime soon. In fact, unless you plan to live for the next 5 billion years and literally see the sun die, you probably aren’t going to run out of sunlight to harvest for your energy with solar panels.
Energy production is a constantly fluctuating market, and some companies aren’t exactly known for their honest business practices. With solar panels, you say goodbye to unexpected fees and the generally rising cost of energy over time, and say hello to clean and free energy production until the day you move out.
You can sell your energy back and get tax breaks
It’s a little known fact that if you use alternative and sustainable energy, in this case solar energy, you can “sell” the excess energy you produce back to the grid, and even get a check from energy companies for the excess energy produced by your home. Nearly all states allow for some kind of process to do this, the most popular being net metering.
In addition to rebates from energy companies, you can get major tax breaks from the government if you use sustainable energy. The Federal Solar Tax Credit allows for a tax credit in accordance with 30 percent of the cost of installation. This makes the initial investment much more affordable after the first year – if you don’t owe the entire savings amount in the first year you can even roll the savings over into the next year!
Whether you are using energy or not throughout the day, solar panels constantly harvest energy from the sun during daylight hours. As long as the sun shines each day, you are almost guaranteed savings. Reap the benefits of the investment, tax breaks, and clean energy production of a solar installation for your home!