In today’s world, the concept of “going green” isn’t just about helping the environment. It’s also about making smart financial decisions. And solar panels can be one piece of the puzzle when it comes to your overall financial strategy.
While many people understand the environmental benefits of solar power, what often gets overlooked are the substantial financial advantages it offers beyond simply reducing electricity bills.
Keep reading to learn more about the financial benefits of solar.
Savings on Energy Costs
First and foremost, investing in solar panels can lead to significant long-term savings on energy costs. Traditional electricity bills can be unpredictable, subject to fluctuating energy prices and unforeseen rate increases.
By generating your own electricity through solar panels, you’re essentially locking in a fixed energy cost for the lifespan of your solar system, which can be 25 years or more. This stability provides financial security and shields you from the volatility of the energy market.
Of course, while it can be difficult to predict how much rising energy prices will continue from year to year in the future, statistics can show us trends from the past. According to data by the U.S. Energy Information Administration, the costs of electricity increased by 30% between 2010 and 2020.
Over the course of 25 years, a typical couple — no kids at home, maybe retired — can expect to spend about $58,000 on electricity, assuming that 30% increase every 10 years. Larger or more families may need to expect spending even more.
But what if you chose to install solar panels instead?
While solar panels do have an upfront cost, it typically only takes 8-10 years to see a total return on your investment. In other words, that’s how long it takes until you’ve recovered the initial money you spent on your solar panel system.
From that point on — so another 15-17 years before you hit that 25-year period mentioned above — you’re only putting the would-be costs of your electric bill back in your pocket. (Plus, solar panels often last more than 25 years, anyway.)
And no matter what else is happening in the world, your electric bill is one area where you don’t need to worry about inflation.
Make a Great Investment
We challenge you to look at solar panels as an investment. Here’s why: When you make the decision to go solar, you’re absolutely making an investment.
Consider this definition of “investment” by Investopedia:
“An investment is an asset or item that is purchased with the hope that it will generate income or appreciate in value at some point in the future.”
Going solar does not necessarily guarantee you immediate financial benefits, but the goal is that you’ll see them in the future through reduced (or obsolete) energy bills and increased home value. And you will! But an immediate payoff isn’t what investing is about, anyway. It’s about looking toward the future to see those benefits come full circle.
Not only do solar panels meet the definition of an investment, but they’re also one of the safest investments you can possibly make. And this is especially true the closer you get to retirement and your investment risk tolerance decreases.
Solar panels can never lose you money — they can only continue producing you energy. No matter what the markets are doing, your solar panels will be unaffected.
Increase Your Home’s Value
Even if you want to make a great investment, you might be concerned about making the switch to solar for a couple of reasons. Like, what if you aren’t planning to stay in the same home forever? Whether you’re in your starter home, you have a growing family and are expecting to upgrade in the next few years, or you’re planning to move during retirement.
It’s a fair concern to wonder how solar panels could be a good idea in these situations where you’re not in your “forever” home. However, the truth is that solar increases your home’s value — potentially even beyond the cost of installation.
Energy.gov and Berkeley Lab have found that homebuyers are consistently willing to spend more for a home equipped with solar panels. This is because solar panels are seen as home upgrades, similar to an updated kitchen or finished basement.
And a National Association of Realtors study showed that more than one-third of home buyers were willing to pay an extra $10,000 for a home that saved $1,000 on electricity costs annually. They were willing to pay even more for homes that saved more on electricity
Go Green To Save Some Green With KC Solar
If you are looking for a Kansas City solar panel installation company, look no further than KC Solar. They are your local Missouri and Kansas solar panel installation experts. Once you schedule a no-pressure site visit, our experts will help you understand what solar system specifications would be best for your home or business.
KC Solar is a local company made up of KC natives with KC pride — in our city, and in our work. Which means we’ll always give you the best of ourselves.
And be sure to download our Free Solar Panel Buying Guide for more information.
We look forward to serving you!
