Financial Benefits and Advantages of Solar Energy

There are many advantages of solar energy as a clean and renewable source of power. Besides being clean, renewable, and good for our environment, here are some reasons to consider using solar energy as a smart and worthwhile investment.

1. Savings on Electricity

One of the clear advantages of solar energy is the significant savings it immediately produces. The power that your solar array creates saves you money. Every kWh the system produces is worth the full retail energy rate you pay the utility. You can reduce or eliminate your electric bill by going solar.

And when the electric company decides to increase their rates again? Yours stay the same: with solar you have control over your own future electricity rates.

2. 30% Federal Tax Credit

There is a 30% Federal Tax Credit on the total installed cost of your photovoltaic system. This means you get nearly a third of the cost back: less money to the government and more in your own pocket. This Tax Credit is currently set to begin decreasing after 2019.

3. State Rebates

In Pennsylvania and New Jersey, there are often local incentives that are given to businesses and homes that choose to go solar.  Some of these are given by local utility companies and some by a state-run program.  Even some employers offer added incentives! Explore the possibilities where you live, or ask us today and request a quote.

4. Renewable Energy Credits (SRECs or AECs)

For every 1,000 kWh of power your system produces, you will earn a Renewable Energy Credit often referred to as an SREC or an AEC. These credits are accumulated over time and sold on a state market according to a fluctuating value based on supply and demand. This is an added financial incentive to consider.

5. Home Improvement Investment

Solar panels are one of the few home improvements guaranteed to increase the value of your home. Most home renovation choices are subjective — maybe you like the idea of wooden counter-tops, but when you try to sell your home, you find the buyer wants granite. In contrast, the value of solar panels is objective: they decrease your electric bills, providing value to you and anyone else who owns your home.

6. Increase Your Property Value

A study by The Appraisal Journal states that for every $1 you save in energy efficiency you increase the value of your home $20. This means if your solar array saves you $1,000 a year, you have raised the value of your home $20,000!

A different study by the Lawrence Berkeley National Laboratory looked at the resale value of homes with solar in relation to homes without solar. The findings showed that homes with solar sold on average more quickly and for a higher price. This research demonstrated that property value can increase as much as $4 per watt installed, or $20,000 for an average-sized 5kW residential installation.

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