Benefits of Solar Power System

Solar energy is a source of electricity that does not generate any greenhouse gases. It is a clean and efficient form of energy that can help reduce costs for households.

Homeowners who install solar energy systems can also benefit from the federal tax credit and savings on their utility bills. Moreover, their homes can increase in value.

1. Environmentally Friendly

With solar panels installed in your home, you can help to reduce the demand for fossil fuels, limit greenhouse gas emissions, and shrink your own carbon footprint. By producing clean, renewable energy at home you will save on your utility bills and even have the option to sell excess power back to the power company.

Solar systems are made up of solar modules (also called photovoltaic cells), an inverter, and electric cables. Solar modules capture the sun’s rays and convert them into electricity, while inverters convert the direct current into alternating current. The cables carry the energy from the solar panels to the rest of the household.

The energy required to mine and manufacture solar panels does impose environmental costs, however, these are far less than the damage caused by the burning of fossil fuels. This makes solar energy a truly clean, green and sustainable power source. Aside from carbon dioxide, solar power produces no other air pollutants like nitrous oxides, sulfur dioxide or particulate matter.

2. Reduced Utility Bills

One of the most attractive benefits of solar power systems is that they significantly reduce your average monthly utility bill. You can also offset the initial upfront costs with federal and state tax credits, rebates and solar renewable energy certificates (SRECs).

The amount that you save will depend on your roof size and angle, local electricity rates, how much direct sunlight it receives, and your electricity usage habits. Ideally, your solar system will provide enough energy to offset the entire amount of your energy consumption.

Additionally, the use of solar energy can help you avoid reliance on foreign energy sources. A large portion of many countries’ energy expenditures go toward paying for oil imported from the Persian Gulf. With this dependence comes the risk of supply disruptions and increasing prices. By switching to solar energy, you can help reduce this dependence and avoid potential disruptions. Additionally, solar energy is a reliable source of power that can help you protect yourself from the effects of climate change.

3. Increased Home Value

Home buyers are always on the lookout for ways to cut costs and increase efficiency, and solar energy systems are one of the most cost-effective ways to do both. Homes with solar power sell for 4.1% more on average than comparable homes without the system, according to Zillow.

While it is true that a home solar system is expensive to purchase and install, the upfront investment often pays off in electricity bill savings and lucrative incentives like the federal tax credit. These benefits make solar energy a great option for homeowners who want to reduce their energy costs, combat rising utility rates and boost their home value.

Multiple studies, including the 2015 Selling Into the Sun report from Lawrence Berkeley National Laboratory, have shown that prospective homeowners are willing to pay premiums for homes with solar PV systems installed. Depending on the size of the solar power system and your electricity usage, you can save up to $15,000 or more in utility bills alone.

4. Increased Home Equity

When you invest in a solar power system, it becomes yours and provides long-term savings on your energy bills. Additionally, it increases the value of your home, which is important when it comes time to sell. This value increase can offset the initial cost of the solar power system and provide a significant profit to homeowners who go solar.

Many solar energy systems benefit from a utility billing scheme known as net metering, which gives credit to homeowners for electricity that they send back to the grid. This helps to offset high summer electricity rates and reduces homeowner’s electric bills.

Depending on the payment options, homeowners who choose to buy their solar power system are more likely to see a higher home value increase than those who lease their solar panel arrays. This is because new homeowners can easily transfer the remaining term of the lease or pay off the solar power system to take ownership themselves.