What Is the Value of Installing a Home Solar System?
Nearly 60% of electricity coming into homes across the US still comes from non-renewable fossil fuels. Every year the cost of power goes up while the grid that supplies it ages long past its intended replacement date resulting in widespread power outages and rolling blackouts in extreme weather that have resulted in deaths. For all these reasons many homeowners have been thinking about switching to solar power systems for their homes. If you're one of them, read on to find out the value solar can bring to your home.
Find a Reputable Solar Company
Like any other home work you'd have done by a contractor, it's important for you to look at several competitors. Look for top solar companies in the US and narrow it down to three or four providers in your area. Look at online ratings and talk to neighbors about whom they have used. Each of your chosen contractors will come out to look at your house. Their quote will consider how much roof space you have to devote to panels, the structural integrity of your home, whether it has a strong southern exposure along with how much shade you get from your landscaping. With the leaps in solar battery technology, they should also consider different sized systems with battery capability. Once all of these factors have been taken into account your quote should tell you the price of the system, the percentage of power the system will provide and how much space it will cover. A solar system will cost several thousand dollars but read on to discover why this investment will quickly pay dividends.
Reap the Immediate Savings
The average family in the United States spends about $1,450 a year on electricity. In Hawaii, the most expensive state for electricity, that's closer to $3,480. In Oklahoma, one of the least expensive, it's about $1,100. With about 30 solar panels, most homes in the US could completely remove their reliance on electricity from utility providers. Both the federal and many state governments offer rebates and incentives to install solar power, meaning that some system's net price can be as low as $5,000. If you're in Hawaii, a solar system pays for itself in under two years. Nearly anywhere in the US, it will pay for itself in just over three years. Over 20 years most solar system users will save about $30,000 even taking into account the price of the original installation.
Reap the Long-Term Benefits
While waiting three years for a solar system to pay for itself may seem like a long-term investment, compare it to buying a new car. While you may make monthly payments for your purchase over the next several years, the similarities end there. A solar system requires almost no maintenance. Panels are built to last an average of 30 years and are made to withstand rocks and hail. About the only thing you need to do is keep them clean. If you do have to replace a panel, the cost of panels is extremely low compared to the cost of initially setting up a whole new system.
After about five years your new car has lost about 60% of its value, even though you're likely still making payments on that original value. Even if you're part of the trend expecting to keep a car for seven or eight years, at the end of that time you have something with relatively low value that will have to be replaced by something that has a high value. Your solar system on the other hand ages like fine wine. Zillow found that a solar system can increase the resale value of a home by an average of 4.1% or about $9,000, making even an aging system worth more than it cost to install it initially.
How Does a Solar System Work
It's important to know that a traditional solar system does not free you from the utility company. In some places you simply won't have enough sun all the time to provide all your electricity needs. When your system is installed it will have a bi-directional meter. If you live somewhere very sunny you may actually produce more electricity than you need. That solar electricity is sent back to the grid and you will receive a credit for it. On the other hand, unless you have a battery system, at night or when it is overcast you will need to pull energy from the utilities. Your credits will offset the cost of that energy but you will still be responsible for the monthly fees that your provider collects to maintain the wires that bring electricity in and out of your home and pay workers who install upgrades and take care of you when the power goes out. Keep in mind that solar panels have a degradation rate of about .8% per year, so if your system is providing all your electricity and no extra right now, you may actually see an increased reliance on standard utilities as the years go on.
On the other hand, the government is working towards a smart grid, where aging lines are replaced, and as solar and other alternative energy sources become more popular, electricity will become crowdsourced and able to be directed to emergency services when the power goes down.
If, however, you want to go entirely off-grid battery technology means it is now a possibility. Because they are so new, solar batteries are still relatively pricey and you won't be able to benefit from the possibilities of the smart grid. You'll also need your own backup generator which may be space restrictive depending on your property.
There are other options if the cost of a whole solar system isn't in the cards for you right now. First, consider leasing a system. In this case you don't own the panels, but you will lock in a price with the solar company that means ignoring increased utility costs. Or, because solar panels are relatively inexpensive, you can look at a smaller system that provides for only some of your needs. No matter which option fits, you'll be benefiting your wallet and the environment.
