For many, the initial high-cost of a complete solar energy system can be daunting. But a closer look can reveal important benefits.
Reduces Monthly Cost of Energy Savings
Whether a solar system is paid for entirely up front, financed over time, or a hybrid of each, the long term cost is significantly less than the typical electrical bill. This is especially true in areas where the utility company charges a high kw/hour rate. Additionally, once any financed portion is paid in full, then you essentially get power for free with no monthly payments.
Tax Benefits for Solar Energy
Okay, so here is the real incentivizer for investing in whole home solar system. The federal government is currently offering a 30% tax liability credit. So what does this mean exactly? Essentially it means that the government is helping home, and business owners, pay for their own solar energy system. So, for easy math let’s just break it down. If a system costs $15,000, then the tax credit would amount to $4,500. That’s $4,500 that immediately gets wiped away from any taxes owed. ‘Well what if I only owe $900 in taxes,’ you ask? The answer is that you’re allowed to claim this credit for up to 5 years of tax returns. That alone is a HUGE factor in purchasing your solar power system.
Depending on where you live, you may also be able to receive additional incentives like utility rebates and state tax credits. Some states even offer tax credits that reduce the upfront cost. If you need help accessing your incentives, feel free to speak with a Big Dog Solar representative or consult with a certified tax adviser to see how these benefits will work for you.
Insulation From Rising Energy Cost
The simple fact is that every year the cost of electricity rises. Depending upon your location and the given year that may range anywhere from two percent to eight percent. No one likes the increased prices of any commodity, but with a necessary utility it can be even harder to stomach. With a solar energy system you can protect yourself from those inevitable increases. Even in cases where solar customers have to finance their entire system, having a set payment every month that is easy to budget around makes life a lot less stressful. And again, once the system is paid for completely, your monthly discretionary income will increase that much more.
Solar Can Increase Home Value
While the market penetration of residential solar energy systems is still very small, it is most certainly growing…and by a very quick pace. As the market continues to adopt solar, home buyers increasing look for properties that have solar systems, because of the many benefits listed previously. Depending on the area that you live, you can receive up to $20,000 in property value for every $1,000 reduced in operating costs annually. Adding solar power to your home increases your home’s resale value by a average of $5.50-$6.40 per watt. For example, if your home has a 3.8KW system you’re adding $20,900 to your home’s value.
Aside from the actual monetary value of the home, studies also show that homes with a solar system can sell your property 15% faster than comparable properties that don’t have solar. A lot of times that difference in marketing time for a home can mean one or two months of mortgage payments saved. Depending on what that mortgage is, it could reasonably translate into $1,000 – $3,000.
Whatever your reasons for considering solar for your home or business, you can be assured that there are some significant financial incentives for installing a home energy system that is more reliable, sustainable and more efficient than the standard electrical grid. For more information regarding these benefits or any other question about solar energy, contact a Big Dog Solar customer care rep today.
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