Is it Smart to Invest in Solar Panels for Your Home in 2021?

For many, installing solar electricity seems like a no-brainer- it helps decrease your carbon footprint, reduces electricity costs and with new incentives in place like federal tax cuts and state rebates, investing in solar panels is more affordable than ever!

BUT, when making the switch to solar, there are still many things to think about.

As Kermit the Frog put it, “It’s not easy being green.”

So, if you’re thinking of investing in solar panels for your home, here are some things to consider first:

Installing solar comes with a tax break!

In 2015, Congress extended the federal solar tax credit for another 5 years to last through the end of 2022. This tax cut, known as the investment tax credit (ITC), allows residential property owners to deduct up to 26% of the cost of solar installation from their federal income taxes.

Your state may offer even further incentives.

Aside from the federal ITC, many states also offer tax credits and other incentive and rebate programs.

For example, California, the #1 solar state in the country and leader in clean energy initiatives, currently has over 250 incentives in place.

But, these amounts do fluctuate substantially from state to state and even differ among counties and municipalities. For information on policies and incentives in your area, check out DSIRE.

Upfront installation and maintenance costs a pretty penny.

Despite recent efforts to reduce the cost of installation (AKA the tax credits and state rebates discussed above), switching over to solar energy systems still comes with a hefty price tag.

How much exactly? Well, the exact price is dependent on several factors, including the size and quality of the system, your state-determined rebates, the company you choose to complete the installation and even the specific style of your roof.

If you’d like to ballpark a price, hop over to Solar-Estimate.org and try their solar panel calculator tool. This ‘calculator’ will ask you a series of questions about your home and then provide you with a tailored estimate for solar installation in your zip code.

A variety of financing options are making solar panels more feasible for homeowners.

While the steep upfront installation costs may seem intimidating, there are many ways to help finance your purchase. If switching to solar powered energy is something you’re serious about, check out options such as solar leases, Energy Efficient Mortgages, Power Purchase Agreements and even shared solar or group purchases.

Also, keep in mind that the interest you pay on solar loans may be applicable for even further tax reductions!

Investing in solar panels on your home is capital intensive, but it may be one that ends up paying off.

According to EnergySage, their average shopper takes around 7–8 years to pay off the loan financing their solar panel purchase. But, after all is said and done, they then earn a pretty strong return on investment, almost completely eliminating electricity bills for the next 25+ years.

Installing solar panels may up your property value.

While exact estimates vary from home to home, one thing’s for certain across the board- investing in solar panels will, in one way or another, increase your property’s value. Depending on the location and size of your home and the scale and quality of the solar system, utilizing solar energy may also make your home more attractive to prospective buyers.

Interested in the exact value solar panels can bring to your home? Let’s schedule a meeting and discuss your options!