The cost of solar energy is not the only aspect you should consider when planning to install solar panels. You should also view the installation as an asset. Switching to solar power has financial benefits.
It is also a good option compared to other investments in the current market. The following evaluation will help you view solar energy as a wise investment.
Solar Energy ROI
The first step in calculating whether an asset is a good investment is by calculating the ROI. You can use different approaches to calculate solar energy ROI. A good one is a simple method, such as calculating the payback period and getting more definite results.
When calculating the payback period, you will identify the number of years the solar will pay back the cost you spent purchasing it. In this case, you will divide your solar system net cost by the amount you save on your electricity bills annually.
During the calculation, you should offset twenty-six percent federal tax credit being offered as a relief by the government. However, the tax credit will be viable if only you install your solar system by 31st December 2020. Additionally, you should factor future additional savings because electricity rates are likely to get high as most companies increase their utility rates eventually.
A Comparison of Solar Investment and Other Alternatives
To identify a better investment, you have to compare the options you have. For instance, you can compare investing in solar installment or bond funds. In this case, you are likely to assume investing in bonds is a good option compared to solar because it is lower.
Nevertheless, please consider investing in solar has more benefits that other investments don’t have. This is because the dividends you get in other investments like bonds are taxed in typical cases. Consequently, you will not pocket everything.
One the other hand, the dividends in solar panels investment are in the form of savings that are not taxed. In case you would love to invest in solar panels and do not have adequate funds, you can quickly get financing from the government or solar companies. To get a good plan, you can look for financing services in your locality, for example, if you live in California you might look for solar financing in San Jose.
Solar Panels Adds Value to your Home
If planning to sell your home, you should install a solar panel before then. Most buyers will love to purchase a house with a solar panel to avoid electrical bills. According to research, homes with solar panels takes less time to sell than those without. The impact solar panels will have in your home will depend on the size of the solar panel, the size of your house, and your home location.
Solar Panels have Non-Financial ROI
The benefits of investing in solar panels go beyond financial gain. Once you install the solar system, you will have options to stay on or go off the grid. Furthermore, you can use it as a backup source of power to provide energy whenever the grind is experiencing problems.
Moreover, if you install solar at your home, you will be conserving the environment by using a clean energy source. The traditional electricity production uses natural gas or coal. These substances have profoundly contributed to global warming because they emit a lot of carbon dioxide.
The poisonous emissions from traditional electricity manufacturing also pollute water supplies and air. As a result, there is an amplified number of health complications in the society. In case you adapt solar energy, you will not be benefiting your family, but also the entire community by ensuring the planet is safe and clean. Solar panels installation is among the few smart choices you can invest and experience benefits immediately.
You no longer need to contemplate on whether solar power is a worthy investment or not. For starters, solar energy has a good ROI that cannot be attained in other investments. It is expensive to install an excellent solar system, but the benefits outweigh the costs. Right now, it’s a good time to invest in solar and enjoy a favorable tax treatment. Additionally, if looking for an environmentally-conscious investment, going solar will be the ultimate choice.