Homeowners wanting to go a step further to reduce their energy consumption may want to look into generating their own electricity. Solar technology has improved over the years and the panels have become more affordable, making it a viable option for more households.
What are solar panels?
Solar panels generate DC electricity during the day and send it to an inverter, which converts it to the AC-type of electricity used in households. The panels may last up to 40 years with routine care and maintenance, and tout a return on investment of 15-20%.
How much does a solar panel system cost?
Solar panels can cost between $15,000 and $40,000, depending on your solar set-up, less the rebates and tax credits available. They will generally pay themselves off in the form of reduced utility bills after 7-12 years.
What are the benefits of solar panels?
• Save money. Once you get past the installation and maintenance costs, the energy you generate is free.
• Save energy. Solar allows you to tap into the unlimited power of the sun, making you less reliant on energy drawn from fossil fuels.
What’s the downside?
• It’s not constant. Your system won’t generate energy at night, so energy generated during the day must either be stored or sourced from elsewhere. Additionally, the system will generate less energy during the winter months, when days are shorter, making it necessary to have a backup source of energy.
• It may not be efficient. Currently, solar panels can convert only 22% of the sun’s energy into electricity, which means you’ll need to install quite a few panels to power your home. However, efficiency has improved drastically over the past few years and will continue to improve in the future.
Will they add value to a home?
The short answer is: it depends on where you live. If you live in an area with an active solar market, solar panels may add more value to your home than if you live in an area where the solar market is less developed. Some studies are showing for every additional dollar you see in savings on your energy bill, you’ll add $20 to your home’s total value. The average increase is around $5,900 per installed kilowatt. Keep in mind, the method used to finance the panels plays a role in how much value they may add to a home. If you own the panels, they’ll add value. If you lease them, specially in areas where solar isn’t common, they may not add value. Here’s a link to the top 10 solar states.
Home Selling Resources
| Complete Guide to Home Selling | Get a Free Consultation on Selling Your Home |
| 10 Tips to Selling Your Home | How to Prepare Your Home for Sale |
| Find Out What Your Home is Worth |
Home Buying Resources
| Search Homes For Sale Now | View Open House List |
| Home Buying Process – A Complete Guide | 7 Tips to Home Buyer Success |
| Free Home Buyer Consultation | Why You Need A Buyers Agent |
