5 Reasons To Consider Converting To Solar Power
While there are many reasons to install solar panels on your house, the most common reasons are for financial savings and to help the environment. For those in retirement, the financial incentives are likely a driving force in the decision.
It is worth noting that solar panels are initially quite expensive, which can be alarming for some people. However, despite the initial costs, solar panels are a beneficial option for at least five reasons.
1. Energy Savings
Energy costs continue to rise every year, making utilities one of the most substantial costs for retirees. Electricity can make up a bulk of monthly expenses.
With the investment in solar energy, homeowners will typically notice a significant decrease in their monthly expenses. Depending on the number of panels and energy collected through solar, you can generate free power, even selling some excess back to the energy company.
However, even if you only have a few panels, you can still see savings every month. Since solar panels have a 25-year lifespan, making your money back in energy savings is not uncommon.
2. Tax Incentives
The U.S. government is still trying to push people towards renewable energy sources. Because there is a continued and growing interest in solar conversion, the federal government has continued its tax incentive — the Investment Tax Credit.
In 2021, the ITC will provide a 26% tax credit for solar systems installed between 2020 and 2022. The credit is expected to drop to 22% for 2023.
The ITC essentially acts as a discount for the system. Therefore, when considering the system costs, factor in the 22% to 26% savings.
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3. Property Value
While it might not be an immediate concern, houses with working and efficient solar systems sell for more than those without. The logic is relatively straightforward: solar panels save homeowners money, which means homebuyers will be interested in homes already set up to save them money.
Granted, retirees might not be considering moving any time soon, but it is crucial to plan for the future. Many retirees will downsize at some point during their retirement.
4. Net ROI
Few investments have a better return on investment than solar panels. According to several studies, solar panels average a 20% ROI over their lifespan, meaning they pay for themselves multiple times over the 20 years or more they operate.
The money you save from reduced utility costs is cash you can reinvest into other savings or investments. While it might not seem like a lot from the day-to-day, not paying for electricity can be a significant yearly saving.
The Environmental Protection Agency estimates that 27% of America's carbon emissions stem from the electric sector. The installation of solar panels can reduce your personal carbon footprint and help the country reduce its own.
Installing a solar system on your home is equivalent to eliminating three to four tons of carbon emissions annually or planting 100 trees every year. Solar is sustainable and helps subvert the current climate crisis.
While installing solar panels is not feasible for every retiree or homeowner, it is a potentially lucrative home improvement. However, aside from the financial reward, you know that you are doing your part to help the environment.
What do you think? Would you ever consider installing solar panels? Comment below.
We installed solar in San Diego, CA (Baker) back in 2011 and the electric bill for the year was $75 this in 2021 (we rent the property). When we moved to Wilmington, NC we decided to install solar again there (CFSS) and it has been impressive with monthly electric bills less than $100. We are now installing solar on our beach house in Ocean Isle Beach, NC (CFSS) and are looking forward to reducing our electric rates by at least 60%. Definitely a positive situation for us!