The Advantages and Financial Benefits of Solar Energy
There are many advantages of using solar energy as a clean and renewable source of power. Besides being clean, renewable, and good for our environment, there are many financial benefits of solar energy. Here are some reasons to consider using solar power as a smart and worthwhile investment.
What are the Financial Benefits of Solar Energy?
1. Savings on Electricity
One of the clear advantages of using solar energy is the significant savings it immediately produces. The power generated by your solar array saves you money because you are no longer paying your electric company! Every kWh the system produces is worth the full retail energy rate you pay the utility. You can reduce or eliminate your monthly electric bill by going solar because you are creating your own electricity on-site.
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 because the system is already paid for. Welcome to energy independence!
The major financial benefits of solar energy are reason enough to make the switch to renewable electricity. The cost of a solar system will always be less than what you are paying your utility company for electricity.
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 expected to remain at 30% until 2032. No guarantees what future administrations will say so get the credit while you can!
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 can be sold on a state market according to a fluctuating value based on supply and demand. In other words, you can receive extra income by selling these credits, and this is an added financial incentive to consider. Read more on our FAQ page, then research current SREC values for Pennsylvania or New Jersey.
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 countertops, 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. In addition, Evoke Solar Inc. pays close attention to the aesthetic quality of your installation, being sure to maintain your home’s curb appeal.
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 by $20. This means if your solar array saves you $1,000 a year, you have raised the value of your home by $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.
These studies show that solar can also pay for itself in the sale of the home, making it a viable option even if you are not planning to live there long-term.
Want to learn more about the financial benefits of solar energy?
Read more detailed answers on our FAQ page, then contact us today to see if solar is right for you.
