According to a recent study by the Lawrence Berkeley National Lab (LBL), the installation of panels for solar powergeneration can cause a major appreciation in the value of your property. A report titled “Selling into the Sun: Price Premium Analysis of a Multi-State Dataset of Solar Homes”, says that in California, the homes that have panels for solar energy are more expensive than others that do not.
Is value added to a house because of
panels for solar?
Panels for solar power increases home value. If you are considering buying a solar power generating system for use in your home, the information found in the LBL study will show you that a reasonable investment is being made. The LBL study discovered that homes in states including California, Connecticut, Maryland, New York, Massachusetts, Florida, and Pennsylvania with solar panels enjoy benefits from a ‘solar premium’ if sold as a result of the willingness of buyers to pay extra for homes with solar panels.
What value does solar power add to homes?
Example: A 5
kilowatt (KW) system of solar (the nation’s average) offers power worth 5,000
watts. LBL declares that each solar watt adds approximately $4 to the value of
California homes and approximately $3 for a unit watt in other states. Hence,
solar homes ought to be sold for approximately ($4 x 5,000W =) $20,000 higher
in California or ($3 x 5,000W =) $15,000 higher outside of California.
Potential buyers who consider whether panels for solar power appreciate the value of homes was pleasantly surprised. The amazing thing about the figures is their closeness to what a brand new solar system can be purchased for today.
Our price
analysis of a system of solar of 6KW in California shows many of the more
costly systems are above $4/W. And be conscious that you would pay for the cost
before taking the magnanimous 30% incentive of federal tax which is available
Cheaper power from solar is your optimal
investment in California
The feeds state that the distinction between the California premium panels for solar and non-Californian states is ‘not significant by statistics’: Premiums that are lower may be as a result of “estimates of income and net costs that are lower” that are in other states. In other words, non-Californian states premium deals with installation of solar prices and rates of electricity that are lesser instead because the valuation of solar there are lower.
All these imply
that if your house is sold quickly after the installation of a system of solar,
most or every of your investment will be recouped while money from your bills
of power is saved. This is a confirmation of what we have stated earlier: Power
from solar system’s periods of payback is not something of excess concern.
Either the value
of your home will be significantly increased by your system of solar if you
make the decision to sell your house off, or by itself, it would pay off
through the savings of power bills, before moving out. In either case, a good investment
is solar.
Other fascinating points in the feeds
include:
The premium for solar for homes that are newly built was a little bit lower than homes that are older, showing that installations of solar that are retrofit are equivalent to systems that are built into the house.
Homes with bigger systems have a smaller $/W premium, showing the possibility of an effect which is known as ‘green cache’. As stated in the report, “Purchasers may be desirous to pay a specific amount for owning a PV system of any size on their homes and increment that is more dependent on the system’s size”.
The writers propose that homes which opt for solar via leases or programs of PPA should be future research areas; the recent study scrutinize only homes that have systems that are owner-owned.
Environmental improvement is not the only good reason why you should procure your solar panels, you can make a lot of incredible and mouth-watering savings over the lifetime from your solar panel system.
Can solar
panels really help make good savings?
The advent of diverse available investment opportunities in this present time has raised a lot of skepticism for new promising products that can help consumers save a lot of money. Solar panels are also a very good way of saving. They help to reduce your electricity bill and serve as a means of upgrade for your house. So, if you’re asking if solar panels really help make good savings, the simple and straight answer is YES. And then, how much you will be able to save is dependent upon a lot of factors.
Some of
these important factors are the size and angle of your roof and direct hours of
daily sunlight. In addition, the local electricity rates are also key
determining on how much you can save from solar.
Solar
panels save how much from electric bills?
To understand how much solar can help you save, you need to first make a calculation of how much you are currently spending on electricity each year.
For example,
10,400 kilowatt-hours (kWh) is the medium electricity use that is needed for a
U.S. household. As of October 2018, the national average electricity rate is
$0.1287 per kWh. If you multiply the two together, you will realize that an
average American family spends at least $1,335 a year just on electricity.
After that, you have to put into consideration the changeable character of electricity prices and ascertain what utility rates will be in the coming years. When you are making a comparison between the cost of utility electricity with home solar, bear it in mind that the electricity rates are likely to increase annually. In few years before, there has been an increased rate of national electricity costs at approximately 2.2% per year.
When you use solar, you don’t need to be bothered about utility rate inflation, this is one of its credible advantages. There are no variable utility rates if you generate your own energy with a rooftop PV system. Your energy costs stay at a constant rate.
Because of
solar’s nature as an upfront investment, costs related with a solar system are
installation cost and any additional electricity costs in the cases where your
panels do not offset completely 100% of your electricity use.
What primarily determines if your system will completely offset your electricity needs is the size accuracy of your PV system. To secure that percentage, you can make a calculation of how many solar panels will be requisite for that.
Will you
still pay electric bill when you’re using solar panels?
People often think that when they install solar panels, it will completely wave off electric bill. No, it doesn’t work like that. You would still receive bill from your utility if you install enough solar to completely offset your electricity use so far your property remains grid-connected. Nevertheless, this doesn’t imply that you will forever be paying money on your bill, continue reading and see why.
Solar panel at home
There’s a
policy called net metering. This policy is available almost in all states and
it allows the unused energy produced by your solar panels to be forwarded to
the grid as an exchange for your electric bill credits. This permits you to
draw from the grid at night when you aren’t powering your solar panels because
the sun is not shining. If you draw back the same amount you provided to the
grid or less amount, you do not pay any extra money.
Whenever
you’re given your monthly electric bill, there will be an indication on the net
metering credits you used and there would be no charges for that power.
Where you
might see small charges for electricity is where you might have used
electricity pulled from the grid that wasn’t offset by net metering credits.
To summarize
it all, installing solar panels doesn’t stop you from receiving electric bill.
It is possible that the bill you receive might ask you to pay nothing but only
indicate how your usage was offset by net metering credits for the month.
If you
supply more electricity to the grid than you draw, there would be a roll over
of your unused bill credits to the following month that you can take advantage
of.
Above all, the bone of contention is that solar panels will help to drastically reduce your average monthly electric bill charges, and in some cases, there might be a total elimination of your monthly electric bill.
What
amount of carbon footprint can solar panels reduce?
Money isn’t
the only considerably factor for going solar, environmental improvement is also
one of the vital reasons.
By installing solar, you’re consequentially making an improvement in the environment and a reduction in emissions of greenhouse gas.
There are two ways to answer the question “What amount of carbon footprint can solar panels reduce?” These are – the amount of money you can save from solar and how much CO2 you can save from being ejected into the atmosphere. There is a formula that is given by the Environmental Protection Agency to make a calculation of how diverse green practices result in reductions of carbon emissions. You may try that out.
You can
make huge savings with solar panels
Either you
want to make great savings or you want to reduce carbon emissions, a solar
panel system will definitely yield huge savings for homeowners. However, one
factor that determines how much you save is the cost of electricity at your
place of residence.
All the
same, solar will be a risk-free investment with major returns if you reside in
a state with middle to upper-level utility rates.
We have made
a sample list of frequently asked questions that covers the use of solar for
your home or business.
Are there
enough good reasons to go solar?
1. If I
go for solar energy, what are the financial benefits ?
You save a lot of money on your electricity bills and get protected against increasing electricity costs in the future when you install a solar energy system on your property. The amount of savings you will make is dependent on the utility rates and solar policies in your area. Regardless of where you might be living, solar is a smart investment.
2. What
are the environmental benefits of solar energy?
Just like other renewable energy resources, solar power has numerous health and environmental benefits. There is a reduction of greenhouse gas emissions when you go solar. Solar is a great contributor to climate change and air pollutants reduction. It also helps to reduce these attached environmental problems that can create health issues.
3. How can I find out how much I pay for
electricity?
We recommend that you take a look at your utility electricity bill to find out how much you pay for electricity and your monthly electricity use. It is the quickest and easiest method.
4. What
is the meaning of net metering?
Net metering is simply explained as a system that allows solar energy system owners to be credited for the electricity produced by their solar panels. When you are on net metering, you are only charged for the electricity that you consume beyond your supplied unused generated energy. Please be informed that net metering policies are not the same in all states.
5. Does solar impact my property values
positively or negatively?
Diverse
studies have revealed that homes that are installed with solar energy systems
sell incredibly faster than homes without them. Nevertheless, you should note
that leasing a solar energy system doesn’t increase your property value. Your
property value increases only when you own your solar energy system.
How do
solar panels work for my home?
6. How do
solar photovoltaic (PV) panels work?
Throughout the day, solar panels absorb the energy in the sun and get it converted into direct current (DC) electricity. Majority of homes and businesses operate on alternating current (AC) electricity. This means that before the energy is converted to usable AC electricity, the DC is made to pass through an inverter. At this junction, you may choose to utilize the electricity in your house or send it back to the electric grid.
7. Do my
solar panels produce power when the sun isn’t shining?
It is the
availability of sunlight that will determine the amount of power your solar
energy system can generate. This means that when the weather is cloudy, you get
less energy produced by your solar panels and no energy at night. Nevertheless,
even if you reside in a cloudy city, solar is still a good idea because of high
electricity costs and financial incentives
8. What
if there is a snow on solar panels?
If your
panels are covered in snow, they can’t
produce electricity because solar panels convert sunshine into power. It is
unlikely for snow to cause structural issues with your panels because it isn’t
heavy enough and it is likely to slide off since most panels are tilted at an
angle.
9. Can I
go off grid with solar panels?
You will
still be connected to the grid when you install solar panels on your property.
This permits you to draw from the grid when all the power you need is not
produced by your system. You can go off the grid with a solar energy system
that includes battery storage but we don’t recommend this to homeowners because
it’s not necessary and would cost a whole lot more.
10. Will
I still receive an electric bill if I have solar panels?
Yes of
course, you will still receive a bill from your utility unless you are fully
off the grid and your solar energy system includes battery storage. However, it
is possible to reduce your bill drastically or even reduce your owed amount to
$0 if you procure a solar panel system that matches exactly your energy
consumption.
11. Do
solar panels work in a blackout?
In the case
of a blackout and your solar panel system is connected to the grid, it will
shut off. The essence of this is to curb your panels from injuring electricity
utility repair-people and emergency responders. Still, you can make purchase of
some inverters that give you backup power in a blackout.
12. How much will solar panel maintenance
cost?
Your solar
panel system needs little or no maintenance for the 25 to 35 years they will be
generating power because it is made of durable tempered glass. In fact, there
is no need for you to clean your solar panels regularly. If something
eventually goes wrong, there are warranties that cover them. These warranty
terms however depend on the company.
What are
my solar financing options?
13. What
solar energy rebates and incentives are available?
Solar rebates and incentives differ based on your area of residence. The most substantial is the 30 percent federal investment tax credit (ITC), which gives you the freedom of subtracting 30 percent of your solar energy system’s cost from your taxes. There are additional tax credits that are offered by some states.
14. What
are my solar financing options?
Three solar
financing options are available: you may sign a solar lease/power purchase
agreement (PPA), take out a solar loan to buy your system or purchase your
system in cash.
15. Should
I buy or lease my solar panel system?
Your reasons
for going solar are what would determine if you’re buying or leasing your solar
energy system. If you want to maximize the financial returns of your solar
energy system, we recommend that you purchase your system. If you just want to
reduce your energy bills and help the environment in an easy and
maintenance-free way, you may consider leasing a solar. The choice is yours.
16. Which
is better – solar loans or solar leases?
Both solar
loans and solar leases have their pros and cons. The major advantage of the two
is that there is a reduction in your monthly electricity bills and an
environmental improvement.
17. What
is the difference between secured solar loans and unsecured solar loans?
The main
difference between secured and unsecured solar loans is that you require to
promise an asset as a collateral (which is usually your home) for secured solar
loans while you do not require collateral to borrow money on unsecured solar
loans but you will be paying a higher interest rates as compensation for the
increased risk the lender is taking.
18. How
do I choose the best solar loan?
To chose the
best solar loan that is best suitable for you, we recommend you to make a
comparison of distinct options from a few different financing providers.
Am I
ready for solar?
19. Can I
afford to go solar?
So far you
can afford to pay your electricity bill, yes, you can afford to go solar.
20. Is my
roof suitable for solar panels?
The ideal
roof for installing solar is southerly facing roofs with little to no shade
with sufficient space to fit a solar panel system.
21. What size solar energy system should I
get?
It is the
weather of the area you live and your monthly electricity use that will
determine the size of your solar energy system. We suggest that you take a look
at your previous electricity bills and make comparisons from licensed solar
installers to ascertain the perfect system size for your needs.
22. Do I need to replace my roof before
installing solar?
It can be
very costly to remove and reinstall solar energy systems if you need to make a
replacement. Solar energy systems can last for 25 to 35 years. Nevertheless, if
there is a need to make repairs on your roof, do them and ensure the completion
before you finish installing your solar.
23. How
long will my solar power system last?
Solar panels
are durable and resistant to wind, hail and snow. At different times, you will
need to replace various components of your solar power system but your system
should continue to serve its main function of generating electricity for 25 to
35 years.
24. What
happens if I sell my solar house?
If you have your own solar energy system, you will sell your solar house at a premium because of its solar value. However, the case is different if you lease your system.
How do I
evaluate solar quotes?
25. How
do I choose a solar installer?
There are
certain criteria you must consider when choosing a solar installer. Make sure
you confirm that they are insured, licensed, certified and have enough
experience.
26. How
do I compare solar quotes?
It might be
a bit herculean to compare multiple quotes from different solar installers
because it’s not the same underlying assumptions and metrics that are used by
all solar installers.
27. What
are the different types of solar panels?
At
NextLevelEnergy, we group solar panels into three distinct categories: Economy,
Standard, and Premium. Premium performs best but with higher price tag, Economy
panels are low-priced with low durability.
28. What
are the different types of power inverters?
There are
three types of power inverters. They are, microinverters, string/centralized
inverters, and power optimizers.
29. What
happens during the solar power installation process?
The first thing you need to do while going solar is to register on NextLevelEnergy where you can receive and make comparison of numerous installation quotes. The actual installation takes a day or two to complete.
30. Should
I ask for a solar monitoring system for my solar panels?
If you need
detailed information on the amount of energy your solar panel system is
producing, you are at liberty to enquire from your installer about solar
monitoring system options.
31. Do I
need to install solar batteries with my solar power system?
For most
solar homeowners, batteries are not necessary. In as much as you are connected
to the grid, your system doesn’t require a battery.
What is shared solar?
32. How
is this different from rooftop solar?
You receive
a part of the generated energy from a large solar panel system if you buy into
a community solar project. In contrast to home solar panel system, you don’t
install community solar project on your roof.
33. How
should I evaluate my options?
Foremost,
make a decision if you prefer to own your share or find a subscription-based
program. If you decide to go for ownership, this implies that you’ll be making
an up-front investment in order to save money in the future. If you decide to
go for subscription-based programs, you can make savings over a set period of
time.
34. What
if I move or have to cancel?
You can keep
your share of the community solar project if you move, provided that your new
home is within the same service area. If you relocate outside the service area,
you are requested to sell your share if they are yours, transfer a subscription
to another account or you may make an early payment of cancellation fee (if you
choose a subscription-based model). Terms for cancellation are different based
on project and provider.
35. How
does it save me money?
Your
unavailability to install solar panels on your roof is no longer a problem when
you invest in community solar. You save money and enjoy electricity in your
home or business. You don’t have to buy electricity at standard utility rates
when you’re participating in a community solar project because you’re paying less
for solar electricity.
36. How
will it appear on my electric bill?
If you subscribe to a community solar project or you own a share, you will receive virtual net metering credits on your electric bill from your utility.
