Are there more homeowners than renters in America?
America’s homeownership rate went up by 3%, thanks to pandemic fueled purchases. That means that as of today, about 67% of the country owns their home. Arguably, the biggest advantage of homeownership is being able to call the shots when it comes to developing your property.
If you’re looking for a way to increase the value of your home, while also lowering your monthly expenses then this article’s for you. Whether you’re a new homeowner, or you’ve had your house forever, home solar power is a great way to invest in your future. In this guide, we’ll show you the top benefits that accompany solar power, as well as exploring a couple of financing options.
Don’t let a lack of information stop you from making a smart move.
Read on to learn the truth about solar power.
Squeaky Clean Energy
Let’s start by looking at how home solar power can help you have clean, renewable energy. Traditional energy sources come from messy fossil fuels such as coal or oil. Unlike solar power, fossil fuels create dangerous emissions that degrade the Earth’s air, soil, and water quality.
Sadly, as people continue using fossil fuels, it’s likely the Earth will witness the extinction of more and more species over time. On the other hand, solar power doesn’t create any type of pollution.
Instead, you’ll be relying on an unlimited energy source that isn’t detrimental to the planet. By conserving nonrenewable energy sources, such as fossil fuels, you’ll be protecting the Earth for future generations.
How To Solar Power Your Home
As you begin exploring the different ways to get solar power for your house, you may stumble across a DIY solar power kit for your home. We suggest steering clear of DIY projects that involve solar since even the smallest mistake can make your system malfunction.
Instead, play it safe by hiring an experienced solar installation company. The best companies will be able to provide you with a free quote so you know exactly what to budget for. You can also request information on financing from solar companies who regularly service your area.
You Can Finance Solar
Is the cost of solar scaring you away from making the switch? If yes, consider exploring financing options that are available to you. For instance, you might qualify for a solar lease or a power purchase agreement (PPA). The solar loan can help lower your upfront costs, and the monthly loan payments are usually less than a standard electricity bill.
Solar loans work like home improvement loans, so it’s often easy to get low-interest rates. You may even be able to bundle the cost of solar into your mortgage payment with special housing loans.
Lower Your Energy Bill
Next, solar power can also help you save a ton of money on your energy bill. Here are the top 3 ways solar power keeps energy bills low:
- Tax credits
- Low maintenance
- Steady pricing
Unlike HVAC systems, solar panels require little to no maintenance. The best part is a lot of solar power companies will have warranties or service contracts. Typically, warranties or service contracts mean the installation company will fix any issues that come up, with no cost to you.
Another advantage is that instead of dealing with fluctuating energy bills, solar energy comes with steady pricing. Your electric bill will simply include the total kilowatt-hours your house used from the grid. The pricing per kilowatt-hour will vary depending on the state you live in.
However, if you didn’t need to pull any energy from the grid, your bill will be zero dollars. For instance, let’s say your solar panels generated enough energy to power your house for the entire month. Since you didn’t need to borrow any extra energy from the grid, you’ll wind up owing nothing at the end of the month
Tax Credits and Rebates
The state you live in might offer special tax credits to homeowners who switch over to solar power. The tax credits are a way to reward you for being an environmentally conscious individual. There are also federal tax credits available that you can receive in addition to the state tax credits.
The federal tax credit is called the investment tax credit or ITC. You’ll be able to deduct a portion of the cost of solar from your annual taxes. Homeowners and businesses can qualify for an ITC. How much can you deduct from your taxes with a federal tax credit? Right now, homeowners and businesses are allowed to deduct 26% of the total cost of solar, minus any cash rebates.
In addition to state and federal tax credits, you may be eligible for a cash rebate as well. Typically, rebates are only available for a specific amount of time. In other words, the rebates won’t renew year after year. Instead, there will be a set time frame to help you reduce the cost of installing the new solar system.
Solar Renewable Energy Certificates
Certain states require utility companies to generate a portion of their electricity from solar power. If you live in a state that enforces this rule, you’ll be eligible for a solar renewable energy certificate or SRECs. Then utility companies will pay you money to buy your SRECs to meet their solar requirements.
Increase Resell Value
Last but not least, if you move forward with solar installation you’ll be increasing the value of your home. There’s a lot of people who are interested in solar panels but have no clue about how to go about getting them. By installing quality solar panels, your home will instantly become more attractive to potential buyers.
After installing solar, the FHA requires your home’s value is reassessed and added to the total appraisal value of your home. However, to receive the additional value, you’ll have to own the solar panels, not lease them.
Make the Switch To Home Solar Power
As you can see, there’s a ton of benefits that come with home solar power. If you’re still not sure you’re ready to make the switch because of finances, then it’s time to reach out to the professionals.
Call a reputable solar installation company that services your area. Ask for a free quote, as well as resources for financing options. Before you know it, you’ll be saying goodbye to your energy bill once and for all! For more tips, check out another article.