Everyone wants to stop paying for electricity, or at the very least, lower their monthly bill. Price increases for traditional energy sources, such as natural gas and coal, have made solar power an increasingly attractive option for homeowners. In some cases, solar energy can even provide a return on investment (ROI) in as little as five years.
The initial cost of installing a solar panel system is the main barrier to entry for most people. However, there are a number of benefits that make going solar a smart financial decision.
In this blog post, we will discuss the benefits of solar energy and how it can help you save money on your energy bill. We will also provide tips on switching to solar power and reducing your energy costs.
What Is Solar Energy?
Solar energy is one of the most well-known renewable energy sources. Solar energy is the light and heat that comes from the sun. This energy can be converted into electricity, which can power your home or business.
Solar technologies are made up of solar cells that convert sunlight into direct current (DC) electricity. The DC electricity is then converted to alternating current (AC) electricity by an inverter. This AC electricity can be used to power your home or business.
To collect solar energy, solar panels are installed on your roof. Solar panels are made up of solar cells that produce electricity when they are exposed to sunlight. The solar cells are connected together in series and parallel circuits to create a solar panel.
Solar energy is a renewable resource, which means it will never run out. In addition, solar energy technologies do not produce air pollution or carbon emissions.
If you’re still not sure if solar is right for you, read 8 Reasons Why You Should Use Solar Power.
Five Ways That Solar Energy Can Save You Money
We understand that the initial cost of solar panels can be a barrier to entry for many people. However, there are a number of benefits that make solar power a smart financial decision.
In this section, we will discuss five ways that solar energy may save you money.
1. Save Money on Electric Bills With Solar Panels
One of the most obvious ways that solar energy can save you money is by reducing your electric bill. Solar panels generate electricity from the sun, which means you will use less electricity from your utility company. In some cases, solar panels can provide all of the electricity for your home or business.
This can result in a significant reduction in your monthly electric bill. In some cases, solar panel owners have been able to eliminate their electric bills completely!
Solar radiation is free, so once you have installed your solar panel system, your only ongoing costs are maintenance and repairs. Even if you do not eliminate your electric bill completely, the money you save each month can be used to pay down the cost of your solar panel system. Over time, this will result in a return on investment (ROI).
2. Earn Tax Credits and Incentives
The federal government offers a tax credit for solar energy systems. The solar investment tax credit (ITC) is a 26% tax credit for systems installed in 2020-2022. This tax credit is available for both residential and commercial solar panel systems.
In addition to the federal tax credit, many states offer their own solar incentives. These incentives can further offset the cost of installing a solar panel system. You can check out the Database of State Incentives for Renewables & Efficiency (DSIRE) to see what incentives are available in your state.
Pro Tip: Tax Solar Credits Tucson
3. Solar Water Heating Savings
Solar water heaters use the sun’s energy to heat water. This can provide significant savings on your monthly energy bill, as water heating is typically the second-largest energy expense in a home.
Solar water heaters are typically more efficient than electric or gas water heaters. They also have a longer lifespan, which means they will save you money in the long run.
The payback and savings for a solar water heating system will vary depending on your location, utility rates, and hot water usage. However, you can expect to see a return on investment (ROI) in as little as two years.
4. Increase the Value of Your Home
Solar panels will very often increase the value of your home. This is because solar panel systems are considered an upgrade to a home. As a result, solar panels can make your home more attractive to potential buyers and help you sell your home for a higher price.
Concentrated solar power systems (CSP) can also help increase your home’s value. CSP systems use mirrors to concentrate sunlight onto a central receiver. This heat is then used to generate electricity, providing both power and hot water for your home.
The added value of solar panels will vary depending on the area you live in and the size of your solar panel system.
5. Metering Credits From Solar Power
In some cases, you may actually make money from your solar power system. This can happen when your system produces more electricity than you need, and your utility company pays you for the extra power that your system has generated. This is called “net metering.” Net metering is when the electricity goes through your meter and out to the grid, and your utility company pays you for the power produced.
Generating electricity with solar power is a great way to save money and even make some extra cash. These are just a few of the ways that solar energy can save you money. With the federal tax credit, state incentives, and long-term savings, now is a great time to go solar!
Tips on How to Switch to Solar Power
Now that you know all the great benefits of solar power, you are probably wondering how you can switch to solar. Here are a few tips:
If you’re looking for a solar panel installation company in Tucson, look no further than Intelligent Design Solar. Our certified solar electricians have extensive experience in solar panel installation and can help you to switch to solar power quickly and easily. Contact us today to get started!