I’m thinking about installing solar by the end of the year, so I can get the tax credit back sooner when I file my taxes in a few months. But, I want to be sure I’m investing my money in the best way possible. Can you help me understand how solar will save me money? Does it increase the value of my home? What kind of rate of return on my investment can I expect?
Wants to Go Solar (But Still Not Sure)
Dear Wants to Go Solar,
You’ve come to the right spot. It’s my job to defend your money and help you spend it in only the most beneficial ways. I can definitely help you feel total confidence in your decision to go solar. I’m NOT going to let you waste your money. (So go ahead and return some of those shoes you just bought right now. You don’t need five pairs.)
The short answers to your questions are yes, going solar will save you money (and a lot of it!); yes, solar panels increase your home value; and yes, you’ll get a pretty sizable return on your (very wise) investment.
Your investment in solar will save you massive amounts of money. For starters, you may be eligible to get a 30 percent federal tax credit. That means 30 percent of what you spend on your home solar system going right back into your pocket, which can be upwards of $10,000. Ah, that’s like music to my ears! If you purchase and install your home solar system by the end of this year, you can file it on your 2016 taxes. That means money back in your pocket in months. By using clean energy, your solar panels create more energy for you and pull less and less energy from the utility grid, so you’ll also reap the reward of a low-to-no charge on your electric bill.
Now that we’re clear on how solar saves you money, let me tell you how it can make you money.
Solar panels increase the value of your home. How much value you may be wondering? Tens of thousands of dollars. Yep, that’s right. Similar to finishing your basement, re-designing your kitchen, or any other major home renovation, residential solar panels make your home more desirable, put it one step above comparable homes and give it a more expensive price tag if you decide to sell it. For each kilowatt (kW) of solar installed, home value increases an average of $5,911. The average home solar system is 5kW. That’s $29,555 in increased home value. Cha ching!
Solar panels say to your neighbors or future potential buyers, “Hey, I’m a smart homeowner. I’m financially savvy and I totally pay less for electric than you do.” (I really don’t know why everyone else isn’t doing this already!)
So take my advice. (After all, I only give the best.) Save money and reap the sweet, sweet financial and environmental rewards of going solar. Your next step? Call Icon Solar. They’re the best in the business and will help every step along the way! You have to trust me, I’m a warrior of wealth, your Wealth Warrior.
Wanda, Your Wealth Warrior