3 Major Economical Benefits of Solar Power

The economic benefits of Solar Power systems is one of the main reasons an increasing number of people are interested in this renewable energy source. Find out how you would be saving money by converting your home to solar energy.

Solar Power is increasingly becoming the leading alternative sources of fuel. There are many environmental benefits associated with the use of solar energy, with the major ones being that it is renewable and doesn’t emit any green house gases. In addition, people who want to install photovoltaic (PV) panel systems in their home would find many economic benefits as well. The financial benefits are going to be significant, especially in the long-run.

1. Reduction in Energy Costs

The Solar Power systems require only sunlight to generate electricity and other usable form of energy. And, they don’t require any fossil fuel either for generating electricity or heat. It is because of this independent from non-renewable energy sources that helps in reducing energy costs. Thus homeowners would be saving a considerable amount of money on their annual utility bills.

As per the National Renewable Energy Laboratory (NREL), an average solar PV system would help in reducing cost of energy by almost half. In addition, if you have installed a system that produces surplus electricity beyond your requirement, you would be able to feed it back to the grid and get solar credit against it.

2. Improves Home Equity

The next economic benefit of installing Solar Power is that it would also increase the value of your home. When combined along with the reduced energy costs, the improvement in your home’s value means the system would pay for itself in 3 to 5 years.

According to an independent body, an average solar PV system would add around $20 to the value of your home for each dollar that you save in energy costs every year. Because a typical system would last for around 25 to 30 years, your home’s value can increase by as much as $8,000 or more.

3. Tax Rebates

Both State and Federal governments offer various tax rebates and incentives so ass to encourage more and more homeowners to switch to Solar Power. These programs help in reducing the initial cost of solar panel installation. As per the NREL, an average solar PV system in residential setting would cost in excess of $20,000 and a larger system can cost more than $50,000.

The US Departmetn of Energy along with the IRS offers a special tax credit that comes to around 30% of the cost of a solar PV system. In addition, you can also advantage of State incentives and get a total rebate of something between 50% and 70%.