Top 10 Reasons to Go Solar For Your Home and Business
Sean Curley • November 26, 2023
Do You Know All The Advantages?
Going solar for your home and business can bring about a range of benefits, both environmentally and economically. Here are ten compelling reasons to consider adopting solar energy:
For Your Home:
Reduced Electricity Bills:
- Solar panels generate electricity from sunlight, reducing your dependence on the grid and potentially leading to significant savings on your electricity bills.
Environmental Impact:
- Solar energy is a clean and renewable source of power. By using solar panels, you contribute to reducing greenhouse gas emissions and minimizing your carbon footprint.
Energy Independence:
- Solar panels provide a degree of energy independence. Generating your electricity can make you less vulnerable to fluctuations in utility prices and potential power shortages.
Increased Property Value:
- Homes with solar panel installations often have higher property values. The investment in solar can be viewed as an asset, making your property more attractive to potential buyers.
Government Incentives and Rebates:
- Many governments offer incentives, tax credits, and rebates to encourage the adoption of solar energy. Taking advantage of these programs can significantly lower the upfront cost of installing solar panels.
Low Maintenance Costs:
- Solar panels generally require minimal maintenance. Regular cleaning and occasional check-ups are usually sufficient to keep the system running efficiently.
Long-Term Savings:
- While there's an initial investment in installing solar panels, the long-term savings on electricity bills often outweigh the upfront costs. Over the lifespan of the solar panels, homeowners can enjoy substantial savings.
Energy Storage Solutions:
- With advancements in energy storage technology, homeowners can store excess energy generated during the day for use during the night or during periods of low sunlight. This adds to the reliability of solar power.
For Your Business:
Reduced Operational Costs:
- Businesses can significantly lower their operational costs by harnessing solar energy. Lower energy bills contribute to increased profitability, especially for businesses with high energy consumption.
Corporate Social Responsibility (CSR):
- Embracing solar energy aligns with corporate social responsibility initiatives. Demonstrating a commitment to sustainability and environmental stewardship can enhance a company's reputation and attract environmentally conscious customers.
Whether for residential or business use, the decision to go solar should consider factors such as location, available sunlight, and local incentives. Consulting with solar professionals and understanding the specific benefits for your situation can help make an informed decision about transitioning to solar energy.
Tax Credits A tax credit (as opposed to a "tax-deduction") is a dollar-for-dollar reduction in the amount of income tax you would owe without a tax credit. If you claim a $2,000 federal tax credit, the tax credits reduce your federal income taxes owed by $2,000. It's a dollar-for-dollar proposition. Presently, the federal solar energy tax credit for residences can be applied against U.S. federal income taxes for a % of the cost of solar panels. There is no upper limit that can be claimed. The solar system must be placed in service during the present tax year, and generate electricity for a residence in the U.S. In order to take a federal tax credit. Congress passed an extension of the income tax credit (ITC) in December 2020. This allows a 26% tax credit for solar systems installed through the tax year 2022, which is reduced to 22% for installations in 2023. As of now, the tax credit will expire in 2024 without renewal from Congress. Who is Eligible? If you can meet the following criteria anyone is eligible: You have a solar system that was installed between January 1, 2006, and December 31, 2023. • The solar system must be located in your primary or secondary residence. In the U.S. in the United States. You must own the solar system. Setups, where you rent the equipment or contract to purchase electricity generated by a system you don't own, will not meet the requirement. This is an important consideration for the buy v.lease decision. The solar power system itself must be new or beginning operation for the first time. The federal tax credit can only be claimed once for the original installation of the solar equipment. What Can You Include in Your Tax Credit? You can claim the following expenses for your federal tax credit: Solar panels or cells installed. The labor costs for onsite preparation, assembly, and installation, including permitting fees, inspection costs, and any developer fees. Other related equipment, including wiring, inverters, and mounting parts. State government rebates or incentives vary by state. However, they never impact your federal taxes owed. FAQs: What if I am not a homeowner? You do not have to own your home to be eligible for a federal tax credit. Certain cooperative and condo corporations are eligible if they contribute to the cost of the system. Renters are not eligible, as you have to own the systems. You cannot take a tax credit for a system you do not own. How About a Vacation Home? The tax credit is allowed for a secondary home located in the U.S. You cannot, however, take a tax credit for a rental property that you own. What if My Solar Panels are On My Land, but Not My Roof? Makes no difference so long as it is supplying electrical power to your home. Do I Have to Be Connected to the Electrical Grid or Can I Be "Off the Grid?" No -- you do not have to have conventional utility-provided electrical power in order to claim a tax credit.