Have you considered converting your California home to solar power? If you have not, you should. The more homes that rely on solar power rather than traditional energy sources, the better it is for the environment. But there are financial benefits to switching to solar energy as well. Below are the answers to the question “What are five financial reasons to solar power my home in California?”
1. Stabilizes energy costs over time
Energy costs are constantly fluctuating. Therefore, it is hard to predict what your energy costs will be from year to year or even month to month. Although you can control your energy usage, it is impossible to control your energy rates. Therefore, even the most conservative energy user can see an unforeseen hike in energy costs in a short time span. Choosing to go solar can have an immediate and noticeable impact on your energy bill. Using solar energy means that you will be generating some of your own power and, therefore, can stop relying so heavily on the power provided by the electric company or other utility company. Recent research revealed the average price of electricity in California has increased by almost seven percent annually over the past 30 years. This number is expected to continue to increase in the future. By switching to solar energy, you can lock in your energy costs to avoid this steady increase.
2. Adds value to your home
It is always financially beneficial to make changes and improvements to your home that increase its resale value. There are varying opinions on a set monetary amount adding solar panels adds to your house. The bottom line is experts agree that the change does add value to a home. A report by the Appraisal Journal indicates that the value of a home can increase at a ratio of 20:1, meaning that for every $1,000 saved on a utility bill your home will increase in value by $20,000. That type of increase is too significant to ignore. Plus, it allows you to justify the initial expenditure of money to made the change in the first place.
3. It uses free fuel
Traditional energy sources require the use of fossil fuels. Extracting oil from the earth is costly, dangerous and messy. It also has numerous negative effects on the environment. One only needs to listen to the news to hear about the environmental dangers of fracking, which is also a costly venture. Solar energy, on the other hand, relies on the sunshine to function. Although the equipment to harness solar energy is not cost-free, sunshine is free for the taking. Sunshine is easy to harness and does not require large, ugly equipment to get the job done. It is far less obtrusive and far more practical and feasible to have solar panels on the roof of your house than an oil rig in the back yard.
4. Receive tax credits and other financial incentives
California is one of many states that offers tax credits and other financial incentives for homeowners who opt to use solar energy. This large initiative offers a federal tax credit for residential consumers for photovoltaics and solar water heating systems. The tax credit is approximately 30% of the cost of the solar system. The state also offers a tax exclusion for 100% of a new photovoltaic solar system for any homeowner who purchased and installed this type of system between the years 1999-2016. Not only does the government offer tax credits, but there are also rebates available. Some utility companies offer a rebate of as much as $3.80 per watt. When you combine the tax credits and rebates with the lower utility bill, the average homeowner can save thousands of dollars in a short period of time.
5. Save on your energy bills
For as long as there have been homes to live in, there have been additional costs associated with the home. One of the biggest expenses for homeowners is their utility bills. Although it does not always seem like our homes are using a lot of energy on a daily basis, they actually are. That is evident every month when the utility bills come. Solar energy can change all of that. Homeowners that convert to solar energy can see an immediate reduction in their utility bills. Since the home’s energy needs are supplied by the sun, there is less of a reliance on electricity. Therefore, the electric bills are drastically cut.
Using solar power in your California home can help save you money while it is helping the environment. If you are ready to make the conversion to solar power, work with a professional who can help you with the process and can answer any questions you have.
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