There is really never a bad time to go solar. The fact that utility electric costs are guaranteed to go up year-after-year and that homeowners have more options than ever to generate their own power makes going all-solar a financially smart move. However, there are reasons to go solar now, rather than later.
Energy demand has never been greater. We have tablets, phones, security cameras, gadgets, and gizmos galore. Also, if you have a growing family like mine, the kids are turning our home into an arcade. Over the last year with the kids’ distance-learning, we are now our own online education system. Boy am I glad that we decided to go solar when we did. Yet, with all this added electricity demand, we are now having to build out our solar system even greater than before. When we bought, we were conservative, installing a system that only offset our demand by 100%. Now that the kids are growing older and technology has a greater role in our lives, we are using MORE energy, resulting in a “true-up” bill to the big Utility. As they say, we should have gone-big or gone-home. As a result, we are adding solar panels at a fraction of the price that we would pay if we wanted to continue paying a “true-up” bill.
Now, let’s take a look at why going solar now is still the way to go.
1. Tax Incentives
When does the government ever makes policies that benefits tax-paying citizens, by paying you to improve your home and save money? Residential solar tax incentives were implemented several years ago to help subsidize the cost of residential solar installation to push Americans towards renewable energy sources. In 2019, the federal tax credit for residential solar was 30%. That’s a huge chunk of money that the government was giving back. The tax credit has since gone down. It’s currently at 26%, but that is only because under President Trump the relief bill that the congress passed last year (2020) extended the 26% credit until the end of 2022. Otherwise, the same system would have cost you more out of pocket this year because Uncle Sam was going to drop the incentive down to 22%.
These incentives are not always going to be around and if you are considering solar for any reason. Now is the time… who knows what congress will do next!
2. Adds Home Value
Very few additions or “improvements” that we make to our homes actually add value. By adding value, I mean that the price of your house goes up! When we installed a swimming pool back in 2017, we knew that this very expensive home improvement project was not going to add much value to our home, but we wanted it for the kids and have enjoyed it thoroughly. It is roughly the same for any other home improvement. From adding wood floors to replacing those shoddy blinds with shutters, you pay the money and never see it back when it’s time to sell the home.
Residential solar is entirely different. Once you install an owned-system, meaning you did not sign up for a Power Purchase Agreement (PPA) or lease the system, your home is now worth more, which you can recoup when the home sells. If you are thinking, “Well I am going to be in this house forever” I would ask you to think again. Unless the house is going with you, and I’ve never seen a U-Haul behind a hearse, then someone will be owning your home. It may be a child or a grandchild, but someone will own that home and may want to sell it someday.
The average home value goes up 4% once an owned solar system is installed on the home. In some states, like California, it is closer to 70%. This means that your home will be not only easier to sell but will sell for much more. I know that 4% does not sound like a lot, but when you consider that for a $200,000 home 4% is $8,000 you may have just covered your closing costs, and all you did was save money by owning your own electricity over the years.
3. Home Appeal
Remember that pool that I installed which didn’t add much value to my home? Well, it’s not all that bad, since home buyers looking to settle in somewhere in my neighborhood will definitely look twice at my home, especially when there is a similar home on the block that has the same square footage. Installing a solar system both adds value and adds home appeal.
Buyers would love to walk into a home that they know will not require paying a utility bill. Instead, that money rolls back into the mortgage, a child’s college fund or what ever else one can think to do with an extra $100 or two in the bank per month. This aspect of a home is incredibly desirable for both the current resident of the home and any potential future residents. Why compete against other homeowners looking to sell when you can have them lining up outside ready to make an offer?
4. Start Saving Money Now
The future is uncertain. There is literally never a good time to not save money and have more independence. This is what a residential solar system provides. When you purchase a solar system, your payments go from “fluctuating up and down” to stable monthly payments, making budgeting much easier. At some point early on over the life of the loan, you begin seeing instant savings, since the utility company’s prices always rise year after year, but your solar payment stays the same. This gives you the option to apply that “extra” savings towards the solar loan itself or to do something else with it within your family budget. Lastly, and most importantly, one day you will own your solar system and never have to spend money on electricity again. The sooner you buy, the sooner and longer you save money.
5. Low Interest Rates and $0 Down payment
Drumroll please… the last reason to go all-solar now is because the interest rates and finance options have never been better. Right now, you can get financed to purchase your own solar system for your home with $0 dollars down. In addition, your financing rates are extremely low compared to other types of personal loans that exist. Rates start as lower as 4%! Try putting in a swimming pool for that that low of an interest rate.
The government has been spending trillions trying to bail out the American economy from the effects of the Covid-19 virus and, regardless of your politics, one thing is certain… more government spending means more government debt which equals higher inflation. It is a fact, not a political stance, that inflation follows when our economy is stimulated by public (government) debt. When inflation occurs, interest rates go higher, and it is more expensive to borrow money. So that same dollar that costs you $.04 to borrow today, may end up costing you $.08 to borrow at a later date. By taking advantage of low interest rates (while they are still around) you can own a solar system for much cheaper than that same system will cost you once interest rates rise.
Ok, that’s the list. I hope this has helped you decide to go all-solar, Texas! If you have any questions or want to speak with us directly, please give us a call at (800) 707-2259 or email us at firstname.lastname@example.org