Demand for solar energy is steadily on the rise, especially among homeowners in California and Florida. Going solar could mean saving money on utility bills, cashing in on lucrative solar incentives like the Federal Investment Tax Credit, helping the environment, and reaping the health benefits from clean energy. When combined with a solar battery, homeowners can enjoy the benefits of keeping the lights on, and power essential equipment and electronics during a power outage.
In the next two years, the amount of solar installed is forecasted to grow by up to 18%. The forecasted growth creates an exciting opportunity: When the solar market grows, the price of solar gets cheaper. In the last ten years, for instance, the cost of solar has dropped by 70%! Now more than ever is a great time for homeowners and families to start generating their own energy through solar, and PACE financing is an attractive choice to pay for the upfront investment — that way, you can start enjoying the benefits of solar right away.
Generate Your Own Energy, Save on Utility Bills
By going solar, you will be generating your own energy through the power of the sun rather than relying solely on your utility provider for 100% of your energy needs. Additionally, installing one or more solar batteries will allow you to store unused power generated by your solar system to draw from during a power outage.
96% of homeowners who consider going solar are looking to save on their utility bills. With unpredictable and volatile utility prices, one-way homeowners can ensure stability is to offset the majority of their electricity bills through solar generation, which lasts around 25+ years with the average return on investment in 7 years.
Take Advantage of Solar Incentives
Another reason for the rise in the demand for solar is that homeowners are taking advantage of the solar incentives available to lower their upfront installation costs.
With the Federal Investment Tax Credit, homeowners in 2020 could save around 26% on the costs of going solar. For example, if you are eligible and your solar energy system costs $30,000, the savings from the solar tax credit could be approximately $7,800.
However, it’s also important to note that this tax incentive is declining and will decrease to a 22% rebate in 2021 before being eliminated in 2022. Homeowners should, therefore, consider taking advantage of this opportunity now. Also, depending on where you live, you could benefit from net metering or other local solar or utility incentives, saving you even more on your solar investment.
Renew Financial is not an expert in tax benefits, so as always, check with your tax advisor to get the complete details of the Federal Investment Tax Credit.
Environmental and Health Benefits
At a national level, solar energy is lowering annual greenhouse emissions by 17 million metric tons — an amount valued at an estimated $890 million in terms of avoiding the adverse health outcomes of pollution. As a renewable energy source, solar reduces pollution-related to carbon emissions, as well as other dangerous pollutants in the air like mercury, nitrogen oxide, and other particulate matter. When more of your neighbors go solar, that means the air quality around you improves, and these health benefits are shared among your local community.
On a separate front, electrical grid instability is also a key concern for many homeowners in California and Florida. Growth in residential solar PV capacity helps address this problem by reducing the reliance on central power plants. Over time it’s expected that the rise in residential solar adoptions will gradually increase grid stability by putting less strain on the grid, particularly during peak periods.
Use PACE to get Solar Today!
Financing has become the most prominent way Americans are paying for the upfront costs of their solar installation. There are many forms of solar loans, from unsecured personal loans to on-bill financing programs. However, there are many unique safeguards and benefits built into PACE financing that make it stand out from the crowd. With PACE, you can protect your investment in renewable energy and get peace of mind with these key features:
● No upfront costs
● Fixed, low-interest rates
● Repayment terms up to 30 years
● Repayment in the form of a line item on your property taxes
● Contractor oversight
● Direct support from a knowledgeable staff
If you are one of the growing majority of Americans seriously considering solar installation for your home, PACE offers a financial solution to reduce your carbon footprint, save on your energy bill, and improve the air quality of your local community.
