Now that there are more incentives than ever to make the switch to solar, the solar solution is hot. Are solar panels a good investment for your home?
The Solar Solution
There are many avenues you can travel to find the best answer. Unfortunately, it is hard to know where to begin. So, we will provide a few to get you started.
The Solar Guide
First, there is a highly informative guide from energy.gov on solar energy. This guide provides information about solar technology and if your home is suitable for the transition.
The United States Energy Department has a primary goal to make sure solar energy gets cheaper and cheaper. Likewise, more competition means a lower price.
Solar Solution Advantages
According to sunpower.com, there are many advantages to going with solar energy. They include the following:
- Home solar is more affordable than ever.
- Net metering may allow homeowners to profit from excess energy produced.
- Quality solar panels can last 40 years or more (better return on investment).
- Solar panels can increase home resale value.
Disadvantages to Solar
- It does not work for every roof.
- It is not ideal if you are about to move.
- The upfront cost can be expensive.
- Savings can be low if your electricity bills are low.
Lease or Outright Own Solar Panels
Choosing solar panels for your home is a big decision. And the financing is a substantial chunk of the puzzle.
Home buyers are increasingly likely to find solar systems on prospective homes. With the Inflation Protection Act’s extension of a 30% federal tax credit for the installation of residential solar panels to 2034. The White House predicts 7.5 million more homeowners in the U.S. will install panels over that period, adding to the more than three million homes already equipped.
A lot depends on whether or not homeowners own or lease their solar systems, according to researchers at Lawrence Berkeley National Laboratory and mortgage guarantor Fannie Mae. The results of their research show that owning outright is the only way to reap increased home value when selling.
The researchers concluded that solar-energy systems owned by the homeowner are likely to increase the home value by about the amount the system cost and leasing systems have no statistically significant impact on home prices.
Finally, do your due diligence before leaping. Both buyers and sellers need to read more about the process of going solar environmentally and financially. Furthermore, some solar negotiators can help you with that decision. One such negotiator we found offers this recommendation: if you intend on selling your home in less than 6-7 years, solar may not be the right move for you.
The Dias Team
Sell My House
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