What Homeowners Should Know Before They Purchase Solar, Part 1
If you’re reading this, you likely already know that investing in solar panels makes sense for homeowners. Given benefits like long-term savings and energy independence, making the switch to solar is beyond wise.
But before you sign a contract or schedule an installation, it is important to understand a few key points that can make or break your solar experience.
Here are 5 more things that every homeowner should know before buying solar panels.
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Solar Incentives Can Help Make Going Solar More Affordable
Federal and state incentives for solar can significantly reduce the cost of your solar installation. For instance, the federal solar tax credit (ITC) allows homeowners to deduct a percentage of their installation cost from their federal taxes.
Some states and local utilities also offer rebates, performance-based incentives, or net metering. Be sure to discuss solar incentives with your installer to help ensure you take advantage of everything that is available to you.
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Leasing vs. Buying Has Pros and Cons
While buying your solar system offers the best long-term financial benefits, leasing or signing a power purchase agreement (PPA) may allow you to enjoy living with sustainable energy but without the upfront costs.
However, it is essential to understand that a leased solar system may complicate the selling of your home if you ever intend to move and won’t qualify you for certain tax credits. Understand the trade-offs before deciding to lease solar panels.
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Know How Net Metering Works in Your Area
Net metering lets you earn credit for the excess energy your system sends back to the grid. The policies and compensation rates vary by state and utility, and many no longer even offer this benefit, so it’s important to understand how it will impact your long-term savings and payback period.
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Warranties and Maintenance Are Important
Good solar equipment should come with strong warranties, but unfortunately not all do. Ideally, you want to purchase solar equipment that is covered for 25 years for performance and 10 to 12 years for workmanship. Also, before you sign the contract with your installer, clarify who’s responsible for maintenance. Solar panels require little upkeep, but it’s helpful to know what’s covered if something goes wrong.
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Adding Solar Will Increase the Value of Your Home
Numerous studies show that homes with solar panels sell faster and for more money. Modern home buyers appreciate the reduced utility bills and environmental benefits that come with having solar already installed on their homes. Just make sure your system is owned (not leased) and well-documented when it’s time to sell your home.
Over Time, Residential Solar Pays Off
By installing solar panels on your home, you can lower power bills, increase a home’s value, and contribute in a meaningful way to the preserving the environment. Solar panels, however, are a major purchase—but you’re investing in the value of your home, savings over time, and the health of the planet. Truly understanding these points, as well as the first five things to know about buying solar panel in this article, you can be confident about the future of purchasing power for your home.