Solar Home Systems – Why You Should Consider Installing One
Combined with the 30% federal investment tax credit and state-specific incentives, solar energy has never been more financially feasible. Homeowners should also ensure that their homeowners insurance policy covers the addition of a solar panel system.
The first step to calculating your solar kW needs is gathering the data. To do this, review a year’s worth of power bills and look for the kilowatt hours or kWh on each bill.
Reliability
Solar Home Systems have become an excellent power source for people who live without access to SOLAR HOME SYSTEM the electric grid. These systems help them to cut down their energy costs and save on bills while allowing them to have some of the basic functions that billions of people have already got.
The reliability of a solar home system is an important consideration for those who are considering making the switch to clean, renewable energy. Fortunately, there are many ways to mitigate risk when choosing a solar installer and purchasing a system. Firstly, it’s always a good idea to partner with an installer who offers an industry standard warranty on all equipment (often 20 years for solar panels and 10 for inverters).
Secondly, it’s also worth noting that a lot of the factors that influence solar energy production are outside of the control of solar owners. For example, several cloudy and snowy years will reduce electricity production and slow down your payback; while a few bright and sunny ones will super-charge your system, speeding up your payback.
Finally, the majority of the components in a solar system are relatively low-maintenance, including the racking and batteries. Depending on the type of battery you choose (either lead-acid or lithium), they typically last 3-7 years, and are guaranteed for 10-15 years. In the unlikely event that your solar system’s batteries do fail, most companies provide replacements under warranty as long as nothing has been done to void their warranties.
Savings
In many states with robust net metering rules, homeowners can see an immediate return on their solar investment. The federal investment tax credit (ITC) can reduce the upfront cost of a solar system, as well, making it an even more attractive purchase.
The savings potential of a solar energy system depends on many factors, including your home’s size, local sunshine and electricity rates. To calculate how much you’ll save per year, start by finding your state’s average electricity rate using the U.S. Energy Information Administration database, then multiply it by the number of kilowatt-hours (kWh) your system will generate in a year.
Depending on your energy usage, your state’s regulations and available incentives, you could recoup the initial investment in seven to 12 years. But it’s important to understand how long your payback period will be — and whether you plan to move or sell your home before then.
In addition to your electricity savings, a solar system will boost the value of your home. A recent study found that homes with solar systems sold for about $15,000 more than comparable non-solar homes. This is only possible if you own the system, though, as opposed to paying a developer or power company for your energy or signing a lease with a third-party owner that locks in your electricity rate for years.
Tax Credits
The Residential Clean Energy Credit is worth up to 30% of the cost of your solar energy system. If you install a $20,000 solar system, for example, the credit could cut your federal taxes by up to $7,200 that year (but you can’t get cash back from the IRS). This credit is nonrefundable and doesn’t have a dollar limit. You can also carry forward unused portions of the credit to future years.
Most homeowners claim the tax credit when filing their yearly federal tax return, and most solar companies offer detailed documentation and instructions on how to do this. If you use software like TurboTax, the process is even easier: simply let the system know that you installed a solar power system in the previous year and it will automatically apply your credit for you.
In addition to the federal tax credit, many states have their own solar incentives. In New York, for instance, there are state rebate programs and a solar property tax exemption that can significantly reduce your payback period. When combined with a high utility rate in your area, a purchased solar system (as opposed to a lease) can often achieve payback in less than five years. Click here to learn more about the financial benefits of going solar in your specific situation.
Environment
A solar system produces electricity that you can use at home. This means that it can offset the amount of energy you buy from the grid, or even make a profit from selling energy back to your utility company. It also reduces the amount of fossil fuels you consume, which is a great way to help lower your carbon footprint.
Solar energy is a renewable resource that is abundant in many places. However, the amount of solar energy available for a given location depends on the size and orientation of your roof as well as local weather patterns. Several mapping services and tools are available that can help you determine the solar energy potential of your house.
There are also numerous state and local incentives like tax credits, rebates and PORTABLE POWER STATION net metering to encourage homeowners to go solar. These can dramatically lower the initial costs of a system and shorten its payback period.
Solar energy is a green alternative to fossil fuels, which are nonrenewable and contribute to climate change. It is also a clean, quiet and safe form of energy. You can avoid pollution by using a solar power system at home or by installing a small energy-producing balcony plant on your apartment building. These systems are known as “Balkonkraftwerke.”
