Even if you live in a cave, you’ve heard about the benefits solar panels can provide. You may have considered how they work on a small scale to lower your power bills, or you may have researched the possibility of a large solar array to eliminate your power bill altogether. If you haven’t thoroughly investigated the prospect, you’ve heard rumors about generating enough power to sell back to the power company. The myth is true in the sense that you can, but really isn’t as profitable as you may think since power companies will only pay their regular costs rather than what they bill you per Kilowatt/ hour. There are, however, plenty of substantiated reasons why solar power can benefit your home.
Solar technology is increasing by leaps and bounds every year. Not long ago, the price of a solar system was the same as the savings you would get over the expected lifetime of the system. As solar panels and systems have become more developed, this is no longer true. If you can afford to invest in the system, modern solar technology will absolutely save money in the long haul.
Much like any investment, the savings come on the tail end of the money you put into a solar panel system. If you pay in cash, the saving are immediate as your power bills are less, the extent of savings being dependent on your final choices toward the system. More typically, you finance against credit or equity, in which case your first years of savings go toward the loan. Ideally, the interest rate on the loan comparative to the added value of the house will pay for itself when you consider how much interest you could potentially earn with the same money in other investments.
The added value of solar panels on a house is undisputed. Whether you plan to live out your life in the home or relocate in a few years, the bottom line is your house is worth more. If you plan to retire in the home, the system will add to your equity; if you plan to sell in the near future the system will pay for itself in added value.
When considering solar panels, discuss the savings with your financial adviser to determine how it may help your portfolio. More importantly, talk to a professional contractor to discuss what options are available.