Even though no one can dispute that going solar indeed saves you money, one of hottest topics on this issue is about its short-term cost efficiency. Still, in order to figure this out, one must first work out all the ways in which solar power saves money. Apart from this, there are also a few additional perks that going solar may help you achieve. So, without further ado, here are several issues one must take into consideration.
Government grants and incentives
According to a recent estimate, it may take about 7 to 20 years for a solar panel to pay off. This is if we take into consideration the fact that the average installation costs amount to about $17,000. Now, the reason why there is such a huge discrepancy between the lower and the top end of the bracket is due to the fact that different regions offer substantial tax breaks for those willing to go through with this investment. We are talking about as much as $5,000 off the original price, which would significantly reduce your break-even point.
Adding value to your home
Another thing you need to consider is the fact that once installed, they permanently add to the value of your home. Because of this, if you decide to sell your home right away, you stand to cover a significant portion of the money you invested in them. On the other hand, if you decide to sell your home after they have already paid themselves off (those 7 to 20 years later), you are facing a substantial gain. In other words, no matter for how long you decide to live in that household, your investment will not go to waste.
The prices fluctuate
The next important issue you need to keep in mind is the fact that the prices of solar panels and power alike are quite unlikely to stay what they are at the moment. Sure, some may claim that predicting the exact direction of future prices is not a reliable estimate. Then again, if current trends are to be trusted, the prices of power are going up, while the prices of solar panels are going down. If this trend is to continue, this would mean that the initial estimation you make is nothing more than a worst-case scenario. This alone is enough to encourage many people to try and make this idea happen.
Advances in battery technology
In the previous section, we mentioned that the prices of panels are getting lower and lower with each passing year and if that is so, why invest now? Well, the main reason behind this are the recent advances in stationery energy storage products. With the appearance of the second generation of the amazing Tesla batteries, most notably Tesla Powerwall 2, now seems like the right time to invest. Furthermore, such sophisticated power-storage technology might allow you to make one step closer towards making your home completely energy-efficient.
Selling the excess power
Finally, not only can you save money by switching to solar power, but you can even find a way to earn money by selling it back. You see, some states and countries allow individual users to sell some of the excess power back to the local power company. In this way, you get a credit compensation for all the power that is sent back, further improving the standing of your household budget. However, selling electricity back to the grid is not a simple matter, due to the fact that you first need to contact your utility company and even inquire about various tax benefits you will become eligible for in this way.
As you can see, calculating the amount of money you are going to save if you switch to solar power is not a simple matter. Apart from this, there is also the issue of turning your household green and in this way helping out the planet, at the same time. Needless to say, this is something one cannot easily quantify, yet no one would argue against it being a huge plus.
Author Bio: Catherine is a passionate home design consultant from Melbourne. She loves making homes beautiful and buildings sustainable, but she also like sharing her advice and knowledge with people. That is why she is also a regular contributor to the Smoothdecorator blog. Besides all this, she loves reading and enjoys a superhero movie from time to time.
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Great information – shared with the world!
HI Carol,
Glad you like my information. Solar I really believe is going to be more popular in the future and we are going to be seeing it more & more. Thanks for stopping by, commenting, and sharing my article. Have a healthy, happy & blessed day!