There’s no denying it: solar energy is an investment. It’s an investment on your home, in your wallet, and for the planet. But while solar may come with a big-ticket price, luckily, there are no shortage of financial benefits of solar energy. Like any other investment, it takes time to see return on investment (ROI), but playing the long game with solar will always reap benefits.
As you can see, like most investments, solar proves to have a high ROI in the long-term. With this example, the initial investment was about $5,500, but 25 years later, the solar panels brought a cash flow of $15,000. While the first seven years of the investment did not bring a return, every year after Year 7 showed an increasing ROI on the initial investment. Plus, since the solar panels are an investment that’s not tied to the stock market, you can earn savings risk-free. No matter what’s happening in the economy, your solar panels will earn you money.
We can also consider how solar panels increase the value of homes by a nationwide average of 4.1%, according to Zillow. This equates to approximately $10,000 of added value on the median-sized home. With real estate prices being high in today’s market, $10,000 is definitely more than pocket cash. However, it’s important to note that leasing solar panels does not add value to the home, because the panels are property of a third party. Leased panels are also not eligible for financial incentives because they are not the property of the owner, so buying your solar panels allows you to add value to your home and capture the most financial incentives.
Back in the early days of solar, solar energy used to be a luxurious investment that only wealthy people could seriously consider pursuing. But believe it or not, over the last decade, the price of a residential solar panel system has decreased by an annual average of over 60% (1). Between ticket price decreases and a significant increase in solar incentives, solar is much more affordable at all angles. In fact, between the federal government, New York state government, and NYSERDA rebates, New Yorkers who install residential solar systems can claim essentially half of the total cost of their solar project as a credit on their annual tax return, because New York has the best solar incentives in the country. If that’s not enough, you can earn credits from your utility company for the energy you produce and protect yourself from rising energy costs.
So, what are you waiting for? Take back control of your energy bill and accumulate cash value long-term with solar. You can trust Kasselman Solar to do the best work possible for you and your family. It’s the entire reason we’ve been named a Quality Solar Installer with Gold Status by NYSERDA.
