Why Solar Energy Is A Great Investment

Right now, climate change and sustainability are on everyone's minds, from lawmakers to homeowners. Indeed, homeowners are particularly concerned, since they have so much to lose when disasters happen and often shoulder much of the cost of policy decisions. Renewable energy offers the promise of lasting solutions, but everyone always wonders if green energy is worth the hype. Here are five powerful reasons why you should consider investing in solar power.  

1. Solar is a Buyer's Market

The New York Times recently reported a shocking trend: Big solar companies are actually losing money. That's not due to a lack of demand for solar energy; on the contrary, it's because the demand is growing so rapidly that companies are pushing their resources to the max to finish installation jobs. Smaller companies are taking advantage of this phenomenon, and the market is flush with new startups.

This is great news for consumers. It means that potential buyers have their pick of companies that are only too eager to advertise their unique benefits. A solar installer is never hard to find; if you're in North Carolina (where, like Texas and California, the solar industry is especially lucrative), plugging something like "find solar panel cary" into a search engine would produce a list of viable options in the Cary, NC area. Take your time and do your research. You've got the time and freedom to find a company that fits your unique needs. 

2. Solar is Incentivized

Solar energy has broad support among governments, which has resulted in a mix of incentives and mandates for installation. Some states like California have begun to create mandates for the installation of solar energy on new homes. Other states have their own programs. For example, Pennsylvania requires the inclusion of solar in a renewable portfolio standard, automatically including it in the energy mix offered by utility providers. To sweeten this green energy deal, governments at the federal, state and local levels are offering a raft of lucrative incentives for residential and commercial installation.

The most well-known of these is the federal solar tax credit. This can be claimed on federal income taxes for a percentage of the cost of a solar panel system. For systems installed from 2020-2022, it's 26% but will fall to 22% in 2023 unless renewed. Local municipalities are enacting their own incentives and rebates, and these can be found in the Database of State Incentives for Renewables and Efficiency (DSIRE), so find out what your local government could be doing to smooth the process of installing a solar energy system. 

Solar is an Efficient Investment

Probably the best selling point for solar power is that it's becoming efficient enough to compete with fossil fuels on price. Back in 2017, the solar industry as a whole surpassed the federal government's SunShot goals, with the cost of solar energy dropping to $0.16 per kilowatt-hour for residential generation and $0.11 for commercial. The actual efficiency of solar varies according to geography and building position, but overall the cost of solar has fallen about 20% over the past five years.

The process of having solar panels installed is often a logistical challenge and can be initially costly. According to installation clearinghouse EnergySage, the cost runs about $23,800 to $31,400 for a 10 kW system (minus the federal credit). The upside is that eventually, the investment will pay for itself because you're essentially generating the power for free after that. The same company estimated the average time to break even in terms of cost as being about eight years. These numbers of course represent an average, but given that photovoltaic panels generally last around 25 years, the investment is a long-term but potentially profitable one. 

Using Renewable Energy Means Resilience 

Solar energy isn't just becoming more efficient; photovoltaic cells and energy storage systems are getting more robust and versatile as the technology matures. Already personal solar panels are being included in survival kits by hikers for recharging devices on the go. Building Integrated Photovoltaics (BIPV) can fit solar panels into canopies or even windows making them unobtrusive and adaptable. 

It's no secret that the current electrical grid has suffered a few notable failures over the past few years. Having solar panels and a battery installed could make all the difference in ensuring an uninterrupted power supply for your home when the rest of the network goes down. Companies and government agencies are benefiting from solar since it provides continuity of operation during a crisis. Gasoline generators are still incredibly useful, but when the fuel is gone, it's gone. Solar is a power source for the world that stands the test of time. 

Solar Reduces Greenhouse Gas Emissions

The most important reason to make solar energy a part of your life is the good that it does for the environment. Global greenhouse gas emissions are estimated at around 50 billion tons per year. It works out to about 14.24 tons of carbon dioxide produced per person per year in the United States. Simple chemistry is enough to show how dangerous this is for the health of the planet. It's not good for human health either, since burning coal and oil also emit volatile organic compounds (VOCs) like benzene that can cause diseases such as cancer.

Solar panels do take industrial processes to manufacture, but once they're up and running they emit zero greenhouse gases and require little to no water in the course of their operation, unlike traditional power plants. There's a clear trickle-down effect here. If renewable energy is used to produce renewable energy sources, the positive effects multiply. When electric cars are recharged using solar power, it cuts pollution on multiple fronts. All of that change starts with the individual choice by homeowners, entrepreneurs and government officials to invest in this groundbreaking technology. 

In the end, the decision to go green isn't just about the financial ramifications; it's about the world that's being made more livable for future generations. Now is the best time to research the options available to homeowners for going clean and green.