- Gives you control over your electricity
Installing solar panels and a battery at home may provide financial independence from traditional utility providers while maintaining stable monthly electricity costs. This allows you to avoid paying higher prices for energy during peak hours and offers dependable back-up power in the event that the grid has an outage.
The cost of electricity in every region of the nation has increased by fifteen percent over the course of the last decade, and it is anticipated that this pattern will continue. Because solar service agreements may provide low and predictable rates that are often less costly than the rates charged by your electric company, you can anticipate paying less for electricity when you switch to solar power on average.
Solar-powered batteries may insulate you from what are known as Time-of-Use (TOU) tariffs, which are higher during times of high electricity demand. Your local electric provider determines these prices, and they change depending on the time of day: When there is a high demand for electricity, the price of electricity is higher, but when there is a low demand for electricity, the price of electricity is lower. You may avoid paying the most costly rates under a TOU rate structure while simultaneously maximizing the amount of money you save on energy if you have a rechargeable solar and battery system at your house.
A house battery that is fueled by solar energy will not only save you money but also protect you from the next blackout. The United States already has the largest number of power-outage minutes of any industrialized country, and this trend is only expected to continue as severe weather and an aging power system continue to put pressure on the nation. Brightbox, a home battery system offered by Sunrun, can be charged using solar energy, eliminating the need to refill a gas- or diesel-powered generator, eliminating the associated hassle, unpredictability, and price.
- Provides clean, renewable energy
Solar power generated at home is an environmentally friendly, emission-free, and renewable source of electricity. Solar energy generated at home, in contrast to that generated by fossil fuels such as coal and natural gas, does not emit hazardous pollutants or greenhouse gas emissions such as carbon dioxide into the air or water supply.
Solar energy has the potential to save more than 25,000 lives and avoid health and environmental losses totaling $167 billion. This is accomplished by reducing air pollution. If a home in New York were to transition to renewable sources of energy such as solar panels, they would be able to remove the carbon emissions that would have been produced by burning the equivalent of nearly 5,000 pounds of coal.
The potential of solar energy for homes is enormous. If we were able to harness all of the sun's rays for only one hour, we would have enough power to run the whole world's electricity grid for a full year. When you take steps to lessen your own carbon footprint, you'll be contributing to the reduction of harmful emissions caused by the combustion of fossil fuels. Technologies that use renewable energy sources are the key to a cleaner and more prosperous future for everyone.
- Increases home value
Another benefit of installing solar panels and batteries at home is a rise in the value of the property. Solar panels add an average of 4.1% more value to a property wherever they are installed in the United States. This indicates that a house with a current value of $500,000 may see an increase of $20,500.
Recent studies suggest that the average gain in resale value is between $4,020 and $5,911 for each kilowatt of solar panels that are placed on a home, however the exact amounts might vary depending on the site and the installation.
The cost of a typical rooftop solar system, which includes the purchase and installation of a battery, is often recovered when the property is sold. In addition, homeowners who invest in solar energy are rewarded with decreased energy bills and generous tax advantages, both of which have the potential to pay the cost of the system numerous times over the course of the warranty that it comes with.
The amount of time a house powered by solar energy spends on the market typically differs from one section of the nation to another. If your property is equipped with solar panels, it will sell 20% more quickly than comparable homes that do not have solar panels installed.
The figures speak for themselves: putting solar panels on your roof is a smart financial move. The value of your property is likely to rise dramatically if you make considerable improvements to it, regardless of whether you intend to move out or make it your permanent residence eventually.
- Qualifies for tax breaks and cash incentives
Many individuals decide to buy solar panels and batteries by going via a third party ownership, which gives them access to all of the system's advantages for a more affordable monthly payment. On the other hand, there are many who choose to purchase their systems altogether. On average, solar panels may be purchased for anywhere from $16,200 to $21,420. Because of the federal solar tax credit, local rebates, net metering, and other incentives, you may be able to cover a sizeable portion of the expense of installing a solar photovoltaic system at your home, and you may even be able to get your money's worth out of the system in a relatively short period of time, depending on where you live.
SREC
Solar renewable energy credits, often known as SRECs, are a tool that may assist homeowners who have installed solar energy systems in earning a return on their investment. Some states have enacted legislation known as the Renewable Portfolio Standard (RPS), which mandates that electric service providers get a certain percentage of their power from renewable resources such as rooftop solar panels. Electric companies may achieve the RPS requirements by purchasing solar credits from homeowners who have installed solar energy systems. SRECs may be sold by homeowners who have installed residential solar systems via an aggregator like as SRECTrade, which then packages the SRECs and sells them to the utility provider.
Net Metering
When your solar system produces more electricity than is needed, the extra power is sent back into the grid, at which point the utility company is obligated to purchase it from you. Consumers who offset some or all of their overall electric cost by selling their surplus energy to the utility provider may do so by deducting that amount from their monthly bill. They can also use these energy credits when their need for power is higher than their solar output, such as on days that are severely clouded or at night. For example, this may happen on a completely dark day.
Federal Investment Tax Credit (ITC)
If you purchase your own home solar system outright after 2020, you will also be eligible for the federal tax credit that is being phased in at that time. A solar system, including the purchase of solar batteries, may qualify for a tax credit that results in a 26 percent cost reduction. If you buy a system that generates 6 kilowatts and costs you $18,300, you will only end up paying $12,810 for it once you get your tax credit.
In 2021, the federal solar tax credit is expected to be reduced to 22% of its current value. The tax benefit is scheduled to be eliminated completely in the year 2021. Because of this, now is the greatest moment to switch to solar energy.
State Tax Credits and Cash Rebates
You may minimize the price of installing a solar energy system by taking advantage of the federal solar investment tax credit and any cash incentives that your state or local government may provide. The amount of the tax credit for solar energy will be different from one state to the next. You may learn more about the tax credits and rebates that are offered in your region by going to the Database of State Incentives for Renewables & Efficiency (DSRE).
Performance-Based Incentives (PBIs)
There is a possibility that your state or energy provider offers performance-based incentives, often known as PBIs. A PBI will provide you credits for the amount of power that your solar panel array generates. When your system is installed, you will get an incentive rate that is decided at that time. A PBI will not pay you up front; rather, it will pay you depending on the amount of energy your solar system produces over a certain amount of time. One popular kind of production-based incentive is known as a feed-in tariff (FIT).
Tax Exemptions
Exemptions from property or sales taxes may also be made available to you by your state or municipality. Homeowners are aware of the benefits that come with property tax exemptions. If you decide to sell your property, investing in a solar energy system might potentially add up to $15,000 to its worth, meaning that you will receive even more return on your investment if you go that route. If your state has a high sales tax rate, claiming a sales tax exemption might result in significant cost savings when you buy a solar energy system. This depends on the amount of sales tax in your state.
- Costs have fallen
The price of installing a solar energy system in your house has plummeted significantly in recent years, decreasing by more than 70 percent in the space of only one decade. Additionally, the price of household solar batteries has decreased by a significant amount.
Even while prices are going down, out-of-pocket expenditures may still pile up. Sunrun recognizes the need to make renewable energy readily available and cheap, which is why the company provides a home solar service agreement with a Sunrun Guarantee that protects you for the next 25 years. There is no doubt that we need sustainable energy sources such as solar panels for homes to preserve the air we breathe, enjoy dependable electricity, and safeguard our communities.