Increasing fuel prices, rapid fossil fuel depletion, and rising pollution everywhere are what result in increasing stress nowadays. Rather than dealing with everyday stress, it’s time to look for a solution. Start using clean, green, and affordable solar energy is the first step towards resolving these problems. If you’re a homeowner, you should consider investing in solar energy for your home.
Residential solar power comes with an extensive range of beneficial options for all energy needs of every homeowner. It reduces the carbon footprint, provides a hedge against severe weather circumstances, and offers energy independence. This would not only prove beneficial for you and your family but ensures India’s clean energy transformation. If you’re in doubt about why you must invest in solar energy for your residential power requirements, then this post will help you in making the right decision.
Rapidly increasing energy prices
Despite overall inflation rates stabilizing, pre-pandemic prices in the power sector keep on rising. Over the last one decade, electricity costs have increased. Using solar power reduces electricity bills and provides a hedge against increasing power prices. It gives homeowners more electricity independence from the volatility in the market. Transitioning to solar energy may seem expensive at first, but it will pay back in less than 10 years, without considering the amount saved on decreased electricity bills.
Irrespective of the upfront cost and payback period, you would be saving $1,452 yearly after rooftop solar panel installation that produces sufficient power to counterbalance the bill completely. You will save money even when your solar panel doesn’t cover 100% of your electricity requirements. After solar system installation, your electricity prices will not fluctuate according to global trends. You will lock your energy prices for the next 25-30 years.
Utility solar boom will consume more resources
It is forecasted that utility solar will have a great scope in the future. Currently, residential solar projects are 31 percent of the solar photovoltaic demand and by 2027, it is predicted to reduce to 16 percent of the market with utilitysolar booming quickly at 180%. The rising demand and emergence of the industry will make resources prioritize more large-scale projects. Hence, there could be longer waiting times and fewer solar panels going toward smaller residential projects.
Offset TOU rates
For states with TOU (Time-of-use) rates, adopting solar systems with the residential battery enables users to run electronic appliances whenever required instead of when electric companies allow them. The electricity rates set by the local utility are known as TOU rates and may differ based on the daytime.
With these rates, electricity is highly costly when the demand is high or during peak hours. By storing excess energy in solar-powered batteries, you can prevent peak electric rates and use energy when you require it the most. You can better optimize your power savings.
Rising demand for solar panels
The demand for solar panels is increasing nationally. The higher increasing growth result in the rising demand for materials and workers essential for solar installation related tasks. The rise in solar panel demand will lead to more job opportunities in the solar sector. Since solar begins to enter the mainstream, going ahead of the demand curve is the best reason to invest in solar energy.
Generous incentives and tax reductions
One of the main reasons why solar energy should be homeowners’ next investment is that different sorts of incentives and tax reductions are available on residential solar energy. You can reduce the final rates of solar products by 30% or more by availing of incentive programs provided by the federal and state government.
The rising demand for solar equipment can possibly reduce many incentives in the coming years. The tax credits are scheduled to reduce to some percentage in 2023. So, investing in solar right now is a good decision among homeowners. You can take advantage of performance-based incentives or solar rebate programs.
In addition to these incentives, the government offers many more subsidy programs and other incentives. Ask your solar installation company about the tax reductions or other generous programs available in your local area for residential users.
An additional reason for solar power investment is the net metering policy. Check with your solar equipment provider to know about your current net metering policy because it can vary based on where you live in. Depending on your local utility, you might receive some credits through NEM or Net Energy Metering. This policy allows solar panel users to sell the excess solar energy produced back to the grid and get higher prices or extra credits in exchange for it.
Add extra value to your property
One of the lesser-known reasons for solar energy investment is that it increases the value of your residential property. The cost of an average solar panel installation and battery is possibly recouped in the sale price of your home. There is a demand for environment-friendly homes among homeowners nowadays. The new generation buyers are highly aware of the increasing environmental issues like global warming and the carbon footprint.
The giant electric grid installation is another reason home buyers are willing to pay an additional amount for an affordable and clean electrical energy supply. When residential solar gets momentum, selling a solar-equipped home and transferring the lease to the new homeowner becomes easier. Since there is a rise in the demand for renewable and clean energy technologies for homeowners, owning a solar-powered home is an asset.
The declining cost of solar panel
Since 2017, the price of solar panels has reduced, thereby making solar investment more affordable for homeowners. This cost has declined to more than 70% in the last ten years. Alongside rooftop solar panels, the cost of home solar batteries has reduced substantially.
There are several financing options that perfectly fit a wide range of financial goals. Based on the local net metering policies and power generation of your solar system, you could notice the instant payback on monthly out-of-pocket utility price.
- Low maintenance cost and efforts
Investing in residential solar energy systems can provide great protection against costly and time-consuming maintenance processes. Solar technologies require low maintenance costs and require minimal upkeep. Solar panel maintenance company offer systems with warranties and annual maintenance contracts that cover required repairs. The experts will reach your home to timely perform the necessary cleaning and maintenance. Moreover, the advanced solar panels are designed to resist harsh climate conditions, which makes them produce sufficient solar energy for a longer duration.
Investing in a solar panel system can be a safe investment in the volatile market. The solar systems generally come with a 25-year warranty for the complete system thus your physical asset will be protected in unexpected conditions. The biggest advantage of solar investment is that it protects an investor from fluctuations in the equity markets because it provides a constant return that is as volatile as the sunshine days in a year. Moreover, unlike traditional electricity costs, calculating the cost of solar power is easier for the upcoming 10 years.