Published on January 16th, 2021 | by Sunit Nandi

Solar Savings: Everything You Need To Know About Financial Benefits And Incentives

What do you prioritize while making a purchase? At first, the quality of the product. But then, how financially beneficial the purchase is. Let’s talk facts; if making the purchase is not advantageous, no matter what quality the product has, the purchase won’t get accomplished. The reason behind this is the possibility to find the same product of the same quality at a lower price. Taking into consideration the factor of competitors, the solar industry, along with solar panel companies like Texas Solar Group, let its customers get the most out of their purchase in financial terms. Let’s proceed with the article to understand what the solar players do.

Financial Incentives For Solar Consumers

Income Generation

Did you know that solar energy earns you money? Well, it really does! The solar panel battery bank is storage equipment that conserves excess energy generated by photovoltaic (PV) panels. The extra energy stored in the equipment may be sold back to the grid or be invested in the solar stock market. Do you already see how earning money by consuming the sun’s energy happens? For the option of selling power back to the grid, the only thing you need to do is send extra energy back to the grid for profit. For the option of investing in the solar stock market, opportunities are a plethora. On the one hand, you can become a shareholder of the company, and resell already bought shares at a higher price. On the other hand, you can stay as an independent investor and bet on the movement of a particular stock. Then, either gain profit or have a loss.

Solar Panel Tax Credit

The solar industry is one of the few ones that gives its customers the opportunity to reduce the cost of the purchase through a solar panel tax credit. For you to imagine the picture, let me introduce you to a small part of the history of the solar panel tax credit. In 2020, it was 26 percent. Then, the tax credit was forecasted to drop in 2021 and get to zero by 2022. The news upset all the people who wanted to go solar. By the end of the year, a decision regarding the extension of a solar panel tax credit was made. According to it, tax credit remains 26 percent for an additional year. By the way, this is a huge motivation to go solar in 2021 as no one knows what may happen later. Above all, further reductions of the tax credit are forecasted to occur in the upcoming three to four years – far from today. See, the solar industry always strives towards making the purchase as bright and as enjoyable as possible.

Electricity Bill Reduction

It is no surprise that monthly electricity bills fluctuate with fossil fuel consumption. I’d like to tell you that with solar energy usage, monthly power bills become considerably less compared to those with fossil fuels. Subsequently, solar makes you money by saving on electricity bills. Let’s draw a comparison to imagine the amount of money you may save with the sun’s energy. Suppose you pay beyond $2.02 per energy unit for your electricity running on fossil fuels. If compared to solar energy costs, it is too much money because going solar only requires a payment of $0,1230 per kilowatt-hour (kwh). The numbers drastically decrease, which creates a rewarding environment to save money by using the sun’s energy. On top of that, with decreased power bills, you get access to more energy. The reason behind this is the limitlessness of the energy of the sun. You go solar – bonus energy, and fewer bills come along.

Financial Benefits For Solar Consumers

No Blackouts And Power Outages

As an inexhaustible resource, the sun’s energy constantly supplies power to your house. As mentioned above, a solar panel battery bank conserves excess energy. Indeed, that extra energy can also be utilized for later consumption upon demand. Suppose a blackout or a power outage happens in your area of residence. Everyone is panicking because of half-done projects, laundry, favorite TV show, etc. Instead of panicking, you just continue your daily activities because the PV panel system supplies the power that the storage equipment conserved earlier. As simple as that! Solar energy – no gaps in everyday life.

Home Value Increase

We have already discussed how the sun’s energy helps you save money on electricity bills. Put yourself in the shoes of a buyer. If you have different options of houses to choose from, won’t you go for the one that will give you additional financial advantages? Of course, you will! Likewise, other buyers will also opt for a house with a photovoltaic (PV) panel system to save money on electricity bills. You may ask, “But if my house value increases, buyers should pay a higher price; how would they be motivated to pay a higher price solely for the solar panel system?” If compared to electricity bills on an annual basis, paying a higher price once for a valuable property along with an efficient addition turns out to be cheaper. The thing is that monthly energy costs fluctuate based on power consumption. You don’t know how much electricity will be consumed each month. That is why you can’t take control of energy consumption. In the case of buying a house with a PV panel system, you get rid of fluctuations in energy cost. Also, you get the opportunity to monitor energy consumption, not to over consume.

Money is not about spending – it is about saving and earning. With solar energy, you either save or make money – no other way around.

Tags: financial benefits, incentives, need to know, savings, solar

About the Author

Sunit Nandi I'm the leader of Techno FAQ. Also an engineering college student with immense interest in science and technology. Other interests include literature, coin collecting, gardening and photography. Always wish to live life like there's no tomorrow.