Homeowners are always looking for ways to save money on their utility bills especially since rates are likely to climb. Many people are considering investing in solar energy to incorporate sustainable energy sources into their daily lives. It not only allows you to save money on bills, but it can also considerably increase the value of your home.
Though panel prices vary by location, the trend appears to favor solar, as prices are falling across the country. And the fact that there is a chance to profit from them adds to the motivation.Going off the grid is an attractive option for those who want more self-sufficiency. Here are some ways solar can lower your bills and put money in your pockets! Click To Tweet
CHECKLIST FOR LIVING OFF THE GRID
Save Money With Solar Panels
Going solar is a significant step toward a more environmentally friendly lifestyle. The lowering of your electric cost is one of the primary benefits of installing solar panels.
However, where you reside has a significant impact on how much money you save. The number of hours of direct sunlight, the slope of your roof, and the size of the solar panel all have an impact on your savings.
Your local electricity tariff has a significant, if not the most influential, impact on the amount of money you can save. You must first understand your expenses before you can compute your savings.
Learn The Numbers
Every homeowner understands the importance of budgeting. The first step in determining how much energy you use and where it is used is to determine how much you can save with a solar system.
Several things influence your domestic energy consumption. These factors include your home's size, age, number of occupants, appliances you own, and how effectively it is insulated.
In a typical year, a typical home uses about 10,000 kilowatt-hours (kWh) of power. To compute the entire cost of your electricity, multiply that by your local electric rate.
Regrettably, determining the correct power cost isn't so simple. You can only calculate an expected annual expense this way because the price of electricity is constantly fluctuating. Keep in mind that there are extra costs are associated with administration, transmission, and distribution that go into the total.
You can also look at your power statement to see how much electricity you use and how much you pay.
Understand Net Metering
Your PV system produces various amounts of electricity throughout the year, sometimes more than you need and sometimes not enough. Your utility bill is affected by the peaks and valleys in energy production.
When your solar power system creates more electricity than you require, the excess is transferred into the grid of your electric utility, and your meter reverses. The net amount of kilowatt-hours you provided to the grid is reflected on your electricity statement as a credit.
On the other hand, when you have a power outage, you might get the difference from the utility company. As a result, you won't have to pay anything extra whenever you consume grid electricity as long as it's the same amount or less than what you sent to the grid. This is referred to as net metering.
Off the Grid Living Increases Property Values
Installing a solar power system can increase the value of your home by 3-4 percent. Typically, properties with solar energy systems have better property values and sell faster than those without them.
The addition of a solar panel to your home will boost its value and make it more marketable when compared to other similar properties on the market.
As homebuyers become more knowledgeable about solar, the demand for residences with solar power systems will continue to rise. Make sure you have a solar isolator switch installed for safety purposes.
If you live in the US, you are eligible for the federal energy tax credit. The federal home solar energy credit is a tax credit for a portion of the cost of a solar photovoltaic (PV) system that you can claim on federal income taxes. The system must be put into service during the tax year and generate electricity for a US dwelling.
Subsidies granted by your utility to install a solar PV system are generally exempt from income taxes due to a federal law exemption. Due to this, before computing your tax credit, the utility rebate for solar installation is not included in the system costs.
Suppose someone pays you cash or an incentive in exchange for renewable energy certificates or other environmental features of the electricity you create (either upfront or overtime). In that case, the payment is almost certainly taxed. If that's the case, the amount will raise your gross income but won't affect your federal solar tax credit.
There is another form of incentive that you can earn, the Solar Renewable Energy Credit (SREC). It's another potential way to earn from the electricity grid.
The process for acquiring SRECs varies by state. Still, you'll usually need to register your solar system with the relevant SREC-granting body, which will then track your renewable energy output and offer you SRECs regularly based on how much energy your system generates. You'll obtain more SRECs if your system produces more power.
Solar panels, in the end, can be a wise investment that will save you a lot of money in the long term. Calculate the numbers to see what kind of return you'll get and decide if they're a good fit for your property.