Computing your energy savings and installation costs is the standard way to calculate your solar project ROI. However, experts suggest that solar projects give MORE value beyond these two factors. Here’s what you should consider in planning for your residential solar project. 

Value of Your Home

Solar panels can also provide indirect financial benefits by raising your house’s value. Homes with solar panels sell for more money than homes without them, according to several studies, albeit whatever research you trust will determine the precise worth of a property with a solar system.

According to one research, every kilowatt of solar energy you add enhances the value of your property by around $5,000. According to another survey, solar-paneled homes cost 4% extra to purchase.

But whichever research you choose, houses with solar panels inevitably sell for much more money than houses without them. This won’t assist you in covering the initial expenses of installing solar panels, but it does make them a wiser investment.

Additional Discounts and Incentives

There are more ways to reduce the cost of your new solar system in addition to the federal solar tax credit. Additionally, there are several state incentives, and some electric providers even provide rebates. However, the specifics of these incentives differ depending on the state and local utility provider.

For instance, installing a solar array entitles you to property tax exemptions in Texas and California. These enable you to deduct from your property taxes the value that solar panels provide to your home’s property. In addition, several energy providers in these jurisdictions offer rebates ranging from a few hundred to a few thousand dollars that can significantly reduce the initial cost of establishing the system.

Conclusion

Most consumers consider a system’s payback period when deciding if solar is the best option. The payback period is the amount of time from the moment you buy solar panels until the savings they provide cover the installation cost. Any payback period of fewer than 12 years is a good investment.

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