ROI of Solar Power: 3 Things You Need to Know

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ROI of Solar Power: 3 Things You Need to Know

Solar power has been touted as having a number of benefits. The popularity of green energy is growing, and solar is said to be a solution. However, there are three things that you need to know before making a purchase.

Solar Power: Potential Returns

A 3.6 kW solar power panel array can contribute up to $15,000 to the price of a home, which can be a significant figure. It does not take into account the savings from electricity bills. For example, over several years, it can save $5,000. Additionally, there are certain tax breaks in some states. Some buyers like all forms of renewable energy. Thus, many homebuyers might look more favorably on making a purchase.

Solar Power: Returns Are Variable

Not everybody will get the same returns from solar power. A lot will depend on the amount of sunshine in a region, and there is variability in certain areas. Additionally, the costs of solar panels can vary quite a lot. High utility rates will also affect the return from these panels. People in the regions that have both lots of sunshine and high electricity costs benefit the most from solar power. These states include California and Hawaii. In other areas, the benefits might take longer to accrue.

There Are Downsides

Of course, solar power panels do not look great. If they are located in front of the house, they can easily deter somebody from buying the property. Additionally, there are substantial upfront costs. Most people have to lease these panels. If you want to sell your house, your buyer might not be too happy with this lease. Finally, if you do not have sunshine, then you do not have solar power.

Solar panels might add some value to the property. Generally, they are for eco-friendly people who want to make minor savings.