The big question (The Economics of Solar Power) for any homeowner considering installing solar power is a simple one: How quickly will the system pay for itself?
Save On Electricity Costs
The financial benefit of your solar power system is reduction of your electric costs. When your system is producing more power than you are using, you sell that power to the utility company. As you do so, your meter actually spins backwards! It’s a really empowering thing to watch.
Stabilize Your Monthly Expenditures
Have you ever said, “I can’t believe they’re raising our electric rates?” What if every time they raised electric rates you effectively got a raise? If you have a solar system on your roof producing a commodity like electricity, that’s exactly the case. Power costs go up, your costs, post installation will remain the same. The sun, to the best of our knowledge, has no plans to charge you.
Solar Increases the Value of Your Home
According to a study from the Appraisal Institute, for each $1 you save in electric costs annually, your home jumps up $20 in value. In comparison to many other home renovations, solar can often recover more than 100% of the original cost. Up till now the best common home renovation was a deck which returned 4% more in resale value than in cost.
Positive Return On Investment
Have you ever asked a car salesman what the “paypack period” is for a car? There isn’t one. Solar is one of the few things you can purchase that pays for itself. Studies show solar paying back 2-4 times its cost over 40 years. Solar power payback occurs in 5-7 years which leaves 33-40 years of system life.