I've got the power. Why solar is going to be the status quo
It's 2022 and by now pretty much most of us have heard of solar panels, but much like cryptocurrency, NFTs and the metaverse, we're still trying to figure out how this technology will benefit us. Through this article I hope to shed some light in regards to the benefits of solar and why you should strongly consider it for your home or future home.
Let's talk about the most important benefit first of saving our environment. By utilizing solar, we reduce our carbon footprint. What that means is we're reducing the total amount of greenhouse gases that are produced and released into the atmosphere. When you look over the Denver skyline and see that cloud of smog, you can’t help to be reminded of how emission is affecting our environment. By reducing pollution, it also helps to contribute to better air quality that goes hand in hand with better health outcomes for society as a whole.
Another area to consider are the benefits that directly affect you as a homeowner. By having solar panels, it could ultimately reduce or eliminate your monthly electric bill. Imagine not having a monthly electric bill. For example, if on average between now and 2042, your monthly electric bill was $200 per month. What if through the usage of solar panels that was a debt that you could eliminate? That's $48,000 over the next 20 years that you will save.
Here's something else to consider, not only can solar panels reduce or eliminate your bill, but you could potentially earn money from them. Here's how it works. If your panels produce more energy than you're using, you can actually get a credit back from your power company. It's referred to as net metering and in essence the utility company becomes your customer. How cool is that? Let's talk tax credits. Again, in a time when we're seeing concerns about taxes going up, the ability to have the federal solar tax credit can be beneficial to a homeowner. The current tax credit for solar financing is 26% of the cost of the system and that is set to drop in the coming years to 22%. As more people become conscious of solar, there will be less of a tax benefit, so the sooner you purchase solar panels the better.
As we know, utility costs for electric and gas are constantly rising. By having solar, you protect yourself against those rising energy costs with electricity. Traditional energy costs tend to fluctuate due to the changes in fuel prices, but with solar that is not a concern. Then there comes the option of leasing versus owning. Just like in anything that we rent or own is always better to own your solar panels. At that point everything is yours, which includes the power and the benefits of the power.
Now, while I've often heard that solar panels will increase your property value with recent conversations that I've had with appraisers I've learned that in the current market, the value does not raise substantially, but as more homes are equipped with solar and it becomes the norm, there will be a significant level of value added to homes with solar versus those that do not have solar. So, whether you are on the fence about solar or you just don't know enough about it to make a decision, the best piece of advice I could give is to research and learn more because solar is coming. It will be the norm and there's the ability to save significantly now and for many years to come.
Editor’s note: Barry Overton is a licensed Real Estate eXp Realty, LLC. He has been an agent since 2001, and started investing in real estate in 1996.
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