Have you seen the videos where a parent puts a marshmallow in front of their child and asks them not to eat it? If they’re willing to wait, they get to have two. Most kids cave in about 30 seconds, but a few valiantly struggle through the challenge and receive the second marshmallow.
Installing a home solar system poses a similar challenge for adults. The high initial cost for these systems deters many people from investing in them. However, over the course of the system’s life, homeowners can make back thousands of dollars in energy savings and increase the resale value of their homes.
Read on to learn whether investing in a home solar system is right for you.
Why Invest in Solar?
Although the initial investment for a home solar system can be steep, most models pay for themselves in about seven and a half years. These systems last for around 20-30 years, which means you’ll be reaping the benefits of home utility savings for roughly two to three times longer than you’ll be paying for the system.
The federal government currently offers a solar tax credit to some homeowners to help them afford the initial installation. However, this tax credit is set to expire in 2024 unless Congress decides to renew it. Without help, the initial cost of a home solar system runs between $10,000 and $20,000 – or the price of a used car.
If you decide to move, having solar panels on your roof may increase the overall value of your home. Although originally seen as a fringe movement, having solar panels on your roof is now an attractive feature for many buyers. You can talk to a local real estate agent to learn more about how solar panels may add to your home’s value.
Although specific utility costs vary by state, the average homeowner in the U.S. pays around $370.16 per month for electricity, gas, water, internet, and other services. After your solar panel system has paid itself off, you’ll have access to free energy until the panels need to be replaced. It’s amazing to know that your energy costs won’t increase during the lifetime of your system.
If your roof is large enough, you may even be able to sell energy back to the electrical grid. The average home solar system requires 20-25 panels, with an output of 200-400 watts per panel. By reducing your energy use and installing extra panels, you can actually make money instead of spending it on utilities each month. Of course, living somewhere sunny will also increase the output of your panels.
A home solar system is light on the environment just like it is on your pocketbook. According to consumer affairs, the average house in the U.S. creates 14,920 pounds of carbon dioxide annually. Switching to solar energy can reduce your home’s carbon footprint by over 3,000 pounds each year.
When You Shouldn’t Invest in Solar
At this point, you may be asking, “Where can I sign up? This sounds great!” Although many would say installing a home solar system would benefit most homeowners, it’s important to note that may not always be the case — solar systems are not a one-size-fits-all solution. For one thing, a solar system relies on sunshine for energy. If you live in a perpetually overcast town, solar may not be the best energy solution for you. Perhaps wind?
It’s also worthwhile to consider how long you’re planning to live in your home. Although installing a home solar system may increase the value of your home, the benefits of solar are experienced over the long term. If you move and have to start over, you could be paying equipment costs much longer than you’re saving on utility bills. It can be difficult or even damaging to relocate panels after they’ve been installed.
Of course, there’s also the question of how to finance the installation. If you’re not able to get a loan or access tax credits, it may be impossible for you to invest in a home solar system right now. In addition, if you live in a state with low utility costs, installing a solar system may not be worth it for you depending on how long you plan to live there.
It all comes down to your individual goals and priorities. If living off solar is important to you for environmental reasons, you can find a way to get the installation done. However, for homeowners who are still looking for their forever home or who are uneasy about the initial investment, it might be wiser to wait.
Solar for the Win
Overall, investments in home solar systems pay off – big time. However, the return you make on your initial investment does depend on how long you plan to stay in your home, the utility costs where you live, and how much sunshine you receive. Solar panels are a reliable source of energy that can free you from dependence on the electrical grid and reduce the environmental impact of your home.
However, the initial costs of installing a home solar system are steep. Some homeowners may find it more practical to rely on their electric utility provider until they’re more financially stable and ready to commit to a location long-term. With the right conditions, however, a home solar system will positively impact your monthly budget as well as the environment.
Propel Studio is committed to designing low energy Residential and Commercial buildings. For more information about our Residential design work, please visit this page. For more information about our Commercial design work, please visit this page.