Solar Panels are a great way to offset energy costs, reduce the environmental impact of your home and provide a host of other benefits, such as supporting local businesses and contributing to energy independence.
1. Reduce or eliminate energy bills.
This one is pretty amazing. We live in Washington, D.C., which has an average amount of sun, but it’s enough to power our house of three kids and two adults at net zero energy consumption. On warm spring days, we generate a lot more than we consume, and then we trade that with the utility. On hot summer days, when we run the air conditioning, or on cloudy days, we draw from the grid.
Even if you live somewhere cloudy, such locations typically receive more than two hours of sunlight per day, while sunny locations receive an average of 5.5 hours of sunlight per day.
Although sunny days will produce more solar energy, Monocrystalline Panels will continue to draw energy even when the weather is cloudy. Indirect, or diffused, sunlight will still help to power your home. Cloudy days usually produce around 10 to 20 percent of the power generated on sunny days.
2. Earn tax credits and rebates.
I didn’t realize how big of a benefit this one would be, but our solar panels are actually paying us. To start, you will get 30 percent of total system costs back from equipment and installation as a federal income tax credit when you file your taxes. This means you would save $7,500 on a solar system worth $25,000.
The investment has a payback period of only 3.5 years, while the Polycrystalline Panels have a warranty of 10 years and useful life of 25 years—which means you generate free electricity and extra credits for 20+ years. It's hard to beat. It's both socially responsible and economically profitable.
Many installers also offer a no-cost installation, where they front all of the money for the panels and installation and charge for electricity at a reduced rate. They are basically “leasing” your roof space and giving you a discount on the electricity in return. This is a good option for homeowners who do not want to make the initial investment or would prefer a no-money-down option. The installer collects all the proceeds from the SRECs in this case.
No matter where you live, you most likely have some amazing tax credits for solar. Take advantage of them while you still can.