“Buy Now! The Solar Tax Credit Is Coming To An End!”
…We’ve all heard the ‘pressure buy’ solar sales tactics and probably done a fair share of impromptu solar research to put our FOMO to rest.
Is there merit to their claim that you should buy now to take advantage of a soon-to-expire tax credit? Unfortunately, that answer is yes. Over the coming years, the tax credit offered to homeowners for solar installation will steadily go away.
We know there’s an advantage to installing solar right now, but are solar panels worth it for you, the homeowner?
We’re big advocates of solar energy, and our hope is to shed some light on this confusing topic. Keep reading to learn more about solar and if it’s a worthwhile investment for your home.
ARE SOLAR PANELS WORTH IT IN 2021?
There are a lot of factors that play into the value solar panels can have for a homeowner. As we break these topics down, we’ll present our take, but ultimately you’ll need to weigh your unique situation to determine if solar is indeed right for you. this tst
Here are four value-adding benefits of investing in solar:
1. THE FEDERAL SOLAR TAX CREDIT
The United States federal government has been offering an income tax credit of approximately 26% of the overall project cost for solar panel installations. This federal tax credit has been offered since 2005 and was set to expire in 2007, but instead has been extended each year until now.
The chart below shows the wind-down plan for the solar tax credit:
This year in the federal tax credit for installing solar dropped to 22%, and in April of 2022, the credit will expire completely. These credits are good for anything that goes into preparing the home for the solar panels, including roofing, tree removal, and other home and property improvement costs. The tax credits directly apply to your federal income tax, decreasing the amount of income tax you’ll owe at the end of the year. If you’d like to learn more about this tax credit, check out this post we recently released.
Also, don’t forget about state incentives and incentives from energy companies in your area. Some states also offer tax credits, and there are incentives from certain electric companies that can help you cover the cost of the investment in both your home and your new solar panel system. Our solar energy consultants at Capture Solar are well versed in the incentives that are offered in the areas we service. Reach out to us, and we can give you information about your local incentives. Check up on energy.gov to learn more.
2. SOLAR ENERGY SAVINGS
The good old electric bill just keeps coming month after month. Sometimes higher, sometimes lower, but no matter what you do or how often you make sure all the lights in the house are turned off, you’re going to be tied to that electric bill. Enter solar, the first consumer-friendly renewable energy source that can save you money on your energy bill.
There are two ways in which you can save money with solar:
- The cost of your monthly payment for your solar panels is cheaper than your current electricity bill.
- After your solar panels are paid for, electricity is almost entirely free of cost.
Both of these may seem obvious, but it is good to have an understanding of what your future with solar might hold. The average cost of electricity in the US is approximately 13.31 cents per kWh. That amount has been increasing by approximately 3-5% every year and will most likely only continue to go up over time. That means that your solar panels can become more valuable to you over time.
If you’re looking to see how large of a solar installation you’ll need, you can use our free solar calculator. Put your contact info, home size, average electric bill, state of residence, and roof direction in. After we’ve done a quick estimate for you, we can provide you with a free solar consultation. Your consultation is a great time to ask any questions you might have about solar or what solar might be able to provide for you.
3. INCREASED RESALE VALUE OF PROPERTY
Something that isn’t often talked about when investing in solar is the value that it can add to your home or property. This won’t apply if you choose to lease your solar panels, and we don’t recommend leasing for that reason. Over time, you will recoup your investment, and, like any home improvement project, it can raise your median home value.
On average, homeowners see an increase in value by about 4.1% or roughly $15,000 in their home value. In some areas where the median home cost is higher or solar is more valued, you can expect to see even more of an increase in value. New York City, for example, boasts that a home with solar installed on it is $23,989 higher in value.
4. ENVIRONMENTAL BENEFITS OF CHOOSING SOLAR
For many, solar panels are worth it for their environmental benefits. Solar panel cost and cost-benefit might play into why some choose to install these panels, but others instead find that the environmental benefits far outweigh any cost.
Fossil fuels traditionally used to power homes, vehicles, businesses, and the rest of the world’s energy consumption have taken a real toll on the Earth’s environment. From global warming to entire rainforests and coral reefs being wiped out from pollution and the need for humanity to continue producing more and more electricity. Renewable energy sources like wind, solar, and hydropower plants offer hope for an electrified future but still a clean planet.
HOW TO FIND THE BEST SOLAR PANELS
If you’re intrigued by the energy savings and increased property value, then you’re probably ready to start going solar. But, before you can install a solar panel system, you’ll have to find both an installer and the right panels for your home. Here are actionable steps to finding the best solar panels:
- Calculate your solar needs. How many panels do you need for your home?
- Check with a local solar expert like Capture Solar, to see what incentives and tax credits you can receive.
- Make sure your roof and home are ready to handle solar panels.
- Find the right solar company to work.
SOLAR SYSTEM LIFETIME
Going solar is only half the journey of embracing solar energy. After the initial cost of solar, it’s natural to also be curious as to how long a solar system and panels will last.
You should be able to expect 30 years or more of solar energy generation from your panels. Many panels and manufacturers carry a warranty of up to 25 years for the panels that they install. There are always things that could go wrong with your system over its lifetime, which is why it’s essential to make sure that the solar installer you work with offers a warranty.
If you’re interested in solar and all of the benefits that solar panels can provide for your home or business, reach out to Capture Solar today! Be sure also to check out our website for helpful information about state and federal incentives for Minnesota, Wisconsin, Illinois, and Florida. We also publish solar news and other useful articles on our blog. You’ll be able to find a plethora of useful information to help you on your journey to using solar energy.