Are Solar Panels a Good Investment? You Be the Judge
Although solar panels have acquired a highly relevant place in the clean energy discussion, few citizens know the positive implications of solar power and how it benefits themselves and others.
This is to be expected in places it is yet to proliferate, such as the Midwest. However, some of America’s most populated states have discovered that solar panels are a good investment: New York, California and New Jersey are just a few of the populous states making the transition to solar-powered homes.
You Don’t Need to Buy Used Solar Panels to Make Them Worthwhile
These solar panels could be damaged, which would lead to less efficiency. In general DIY (do it yourself) solar projects should be avoided. New solar panels come with an installation team for a reason, and it’s because the job is complicated.
Returns Do Vary Based on Specific Power Consumption, But Remain Strong No Matter What
Although the returns of relying on solar panels vary, the returns are a certainty, making solar powered homes a solid investment. The returns on solar solutions will vary most according to the following variables:
- The amount of power used within a home
- The season in which the solar panels are used
- Efficient use of energy at home (avoiding leaving the lights on)
- The equity (ownership) you have of your home
- The time at which you purchase the panels
When Will the Return on Investment from Solar Panels Occur?
Again, this will vary depending on the variables outlined in the previous section. However, on average, solar panels begin to deliver return on investment after a 10-year time window.
A decade’s time may seem long, but it’s paltry compared to the amount of years those who install the panels on their homes stand to profit from.
Take the following statistics for example.
Given that the median age of a homeowner is 32 years. This means that all other variables held constant, homeowners begin to profit from their solar panels by the age of 42.
When we couple this with the national life expectancy of 84 years, the number of years you’ll stand to profit from a solar panel-powered home is 42 years.
So, what then, exactly, is the excuse not to invest in solar solutions? 10 years and a small loan with a very small interest rate is nothing compared to 42 years of steady return on investment.
Home Prices and Home Equity in Solar Homes
A study conducted by Solar power can significantly increase a home’s value. A study conducted by Lawrence Berkeley National Lab conducted research demonstrating that each watt of solar power adds roughly 4 dollars to a home’s value.
Given that the average home with solar panels in the intermountain west has roughly 5,000 kw of solar power, the average home value stands to increase by $20,000.
That’s enough to put a kid through college or make a down payment on a new home.
And, in consideration of the opportunity cost of not going solar, failing to invest all this money could lead to a loss or gain of hundreds of thousands of dollars.
When it comes to solar panels and clean energy housing, there is definitive time value to money. Sometimes the savings earned from installing solar panels on your rooftops can be strengthened by a solar lease or a power purchase agreement (PPA).
Consider the Rising Cost of Traditional Utilities
Grid electricity rates do fluctuate with the seasons and geographic location, but there is a general trend of greater expenses in the utilities industry.
These traditional utilities costs have, even when adjusted for inflation, risen by roughly 4% year-over-year. Alarming at even a few years, this trend has spanned the length of an entire decade.
However, the stability of this trend is not measured over a longer span of time; despite the cost of traditional electricity fluctuating every hour (and sometimes every minute), and the economic value of electricity ranging depending on its point of origin, the rise in prices is, in general, constant.
Opting in to solar panels can help homeowners insulate themselves against these price increases. Although the econometric principles of solar power are complex, the savings behind solar panels aren’t.
Declining Prices of Solar Powered Solutions
Solar installation, engineering of panels, and mobilization is more cost effective than ever, and the trend, although facing impending legislation, will prevail.
Although supply chain factors may be affected by impending legislation, there are numerous ways to keep the price of solar panels reasonable for homeowners—the market will just have to adapt to the contours of the standards set forth, and the industry has a strong track record of responding to changes in legislation accordingly.
Accessibility to Low-Cost Financing
With zero down financing options available, installing solar panels on your rooftops is an easier decision than most expect it to be.
And, if you can get into a new vehicle for zero down, doing so with solar panels should be much easier, as vehicles depreciate at a far greater rate than solar panels do.
Leasing vs. Buying Your Solar Panels
If you are looking to get a better return on investment, buying solar panels is the way to go. Yes, by leasing solar panels you are reducing the amount of money you pay, but you are also losing out on several of the benefits mentioned above, including an increased home price and savings earned over longer periods of time.
Fostering a Connection to the Very Star Responsible for Your Existence
Since we’ve largely covered the quantifiable components of what makes going solar a wise investment, let’s touch on the more intangible benefits, shall we?
In the same way camping gives us a newfound appreciation for the roof above our heads, going solar with a set of high quality solar panels gives us a newfound sense of appreciation and gratitude for the star that not only makes up 98% of the mass in our solar system, but also gives us power as experiencers on an extraordinary planet.
Going solar will enable you to calculate the way the sun moves over your house, understand its solstices, and generally give you an otherworldly sense of knowledge about the environment—boosting your social status and impressing your friends and family.
And, perhaps, powering your home through solar panels will give you a connection to its light in the same manner it gave our ancestors before the advent of cheap, nonrenewable energy resources.