There are many advantages to switching to solar energy, from reducing your carbon footprint to living a greener lifestyle. However, if you’re considering going green, you may be wondering about the costs associated with switching to renewable energy.
For more information on how you can get started with renewable energy in your home and the costs of switching to solar, stick around. We’re going over the costs associated with going green.
Going Green: How Much Does It Cost?
According to the Center for Sustainable Energy, the average cost to switch to solar for your residential property can run on average between $15,000 to $25,000. However, this doesn’t take into account local and federal tax incentives.
As of January 2021, federal tax incentives are set at a rate of 22%. That means for a $20,000 installation, your cost would be $15,560, not including additional local tax incentives.
Another thing to consider is your electricity savings. According to Solar Reviews, electricity savings can help pay off your solar panels in four to eight years. That still leaves you almost 20 years of free power after your installation! For more information on how much you can save.
Going Green Can Increase Your Home Value
Solar panels don’t just help you live greener and provide free power for you and your family. Solar panels can also increase your home’s value.
According to reports from Zillow, installing solar panels on your residential home can increase the resale value by as much as 4.1%. To put that into perspective, that means for a home that cost $300,000, you can raise the value of your home by as much as $12,300.
That’s nearly the cost of your solar panels after tax incentives.
The Savings Don’t End There
In addition to saving money on tax incentives and increasing your home’s value by adding solar panels, the savings don’t end there. In fact, you can make money from having solar panels!
If you use less energy than your solar power puts out to the grid, power companies will pay you for your extra energy. On average, a homeowner can expect to make an additional $ 3,000 from their power savings.
Think about it! What could an extra $3,000 do for your family each year?
You could save it for retirement, use it for college tuition, or even take a vacation. Once you’ve paid off your solar panels entirely, the rest of the money you receive each year is truly passive income.
While there is an expected cost with going green, as you can see, there are many cost advantages that come with it.
Solar panels come with federal and local tax incentives. Additionally, solar panels raise your home value. Last, you can earn money from the energy you save each year. With the money earned, you can put it towards savings or buy things you need.
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