Solar panels represent more than a renewable source of clean energy; they provide homeowners with numerous financial benefits. In 2024, over 37 million homes benefited from solar power. With national tax incentives increasing to encourage homeowners to transition to solar, these numbers are expected to continue growing in the coming years. Not all solar arrays provide identical benefits. Homeowners who understand their situation and the capabilities of their solar energy provider can take advantage of these five essential benefits. Continue reading to learn why so many homeowners are investing in solar panels and how to take advantage of a solar panel installation.
1. Solar Panels Create Energy Savings
Most homeowners are aware of the steadily rising costs of utilities, with electricity consuming most of their monthly utility payments. When properly installed, solar panels allow homeowners to take advantage of increasing electricity costs by reaching their break-even point on their solar investment even sooner.
The Department of Energy predicts that properly installed solar arrays are paid off in saved energy costs after less than 10 years. Homeowners should know that while every situation is different, a solar panel installation provides maximum savings when installed on a South-facing roof at a slope of 15-40 degrees, maximizing its light coverage.
2. Solar Panel Costs are Rising
This may seem counterintuitive since research shows that the cost of solar panels has decreased by as much as 90% in recent years. However, the panels represent a fraction of the overall cost of installing a solar panel array. Inflation and pending tariffs will drive the total cost of solar panels higher in the coming years.
This means that now is an opportune time for homeowners to invest in solar before prices rise. Once disconnected from traditional power grids, homeowners with solar installations will not be subjected to increasing utility costs depending on market performance. By contrast, the price of solar power is locked in per month, offering financial security and predictability to homeowners in uncertain economic times.
3. Solar Energy Resists Outages
Power outages can be inconvenient and costly. Regardless of the time or the current weather, homeowners with solar installations equipped with battery reserves can continue powering their homes even during temporary outages.
This provides convenience during trying times, such as storm-related outages, but it can also lead to savings. Each year, 14% of homes impacted by power outages (or around 5 million homes) reported losing money due to outage-related food spoilage. A further 705,000 homeowners reported losing medication.
Power outages can cause losses, including lost digital work, damaged electronics, and emergency supply costs. Additionally, those experiencing power outages may need to pay for temporary housing until power can be restored. Homeowners equipped with solar installations can avoid these costs even when the rest of their area is experiencing an outage.
4. Solar Installations Provide Tax Benefits
By opting for a clean energy source, homeowners with solar panel installations may be eligible for a federal tax credit called the Investment Tax Credit (ITC). While the ITC is more notable for offering a tax credit to solar-compliant businesses, it also applies to homeowners.
The amount of tax credit available to homeowners changes depending on when the solar installation is completed. In 2022, Congress extended the ITC and raised the tax credit to 30% for solar arrays completed between 2022 and 2032. This credit will be available to homeowners under the current legislation until 2035. At that point, Congress will need to renew or extend it.
This incentive allows homeowners to reach their break-even point more quickly by properly filing their solar installation on their taxes as an investment deduction.
5. Solar Power Increases Home Value
Just as a renovated kitchen can increase a home’s value, a new solar panel installation incentivizes prospective buyers to pay more for a property. Solar panels provide energy savings, particularly when the installation cost is included in the home’s market value.
Many buyers seek more sustainable living as both a financial and ethical decision, so many homeowners install solar energy to increase their home’s market value before selling or refinancing.
Maximize the Value of Your Solar Installation With a Professional Consultation
A solar panel installation provides homeowners numerous opportunities to save on their energy costs, increase the value of their homes, and benefit from tax advantages. As solar panels have become cheaper to install, more homeowners than ever before are seeing the value of solar panel installations.
Our team at Energy Select provides homeowners with professional consultations to assess their eligibility for solar panel installations. Contact us today to learn how you can join the millions of homeowners reaping the benefits of renewable solar energy.