Solar is becoming more popular. An increasing number of Americans are considering making the switch but are unsure if it is suitable for them or their property. Are solar panels a good investment? At a budgetary cost of $1000 per installed solar panel. Typically the number required for a full residential installation is 20 panels. Here are five reasons why you shouldn’t invest in a solar installation right now.
#5 You’re Going to Move
If you’re planning on selling your house in the next year, you might want to put off installing solar panels. Although homes with solar panels often sell for more money, you might want to wait until you’ve found a home you’ll be in. Thus in a few more years so you can truly appreciate the savings your solar panels will provide.
#4 Your Roof Is Old and Needs Repair
Solar panels help extend the life of your roof by sheltering it from harsh weather and ultraviolet rays. That is if your home or company has a properly functioning roof. If you need to make roof repairs, you should put off getting solar until those repairs are completed. If you are planning on installing a new roof, contact a professional about what is needed to incorporate a solar panel installation.
#3 Your Roof Is In Shade or Blocked By Buildings
Your solar panels need to be exposed to the sun for long periods to be worth the money. Rooftop solar may not be suited for you if your home or business’s roof is surrounded by barriers that limit the quantity of sunshine you receive. However, if you have enough land on your home that receives adequate sunlight, you might want to consider installing a ground-mounted solar system.
#2 You Lack Enough Space
Solar may not be ideal for you if your home or business has a tiny roof that prevents you from installing enough panels to generate enough energy to make a significant difference in your power cost.
#1 You Cant, Qualify for Solar Incentives and Rebates
The federal government’s solar Investment Tax Credit (ITC) is the most major solar incentive program accessible, although various incentives and rebate schemes are available for solar panel installations. The ITC gives property owners who install eligible solar systems a 26 percent tax credit on their installation costs, provided they do so by December 31, 2022. In 2023, the percentage reduces to 22% for businesses, 10% for firms in 2024, and zero for residential developments in 2025.
You’ll qualify for this program so long as you don’t owe back taxes, your system is a small-scale photovoltaic system—having a capacity of less than 1 megawatt (MW), and you’re placing it on a qualifying owner’s property. However, if you can’t meet those requirements, then solar might not be suitable for you.
What is the Federal Tax Credit for Solar Panel Installations?
The Homeowners Guide to the Federal Tax Credit for Solar Photovoltaics noted that the federal home solar energy credit is a federal income tax credit. This can be claimed for a percentage of the cost of a solar photovoltaic (PV) system. (Although other sources of renewable energy are eligible for equivalent credits, they are outside the scope of this guidance.)
Congress extended the ITC in December 2020, providing a 26 percent tax credit for systems installed in 2020-2022. In addition, a 22 percent tax credit for systems installed in 2023. Unless Congress renews it, the tax credit will expire in 2024.
There is no limit to the amount that can be claimed.
Case Study A 2018 Solar Installation Pays Off
Here is a video of a homeowner who went through a solar panel installation on his home in 2018. He reports on the economics of his investment nine months later. While the average payback period is typically up to ten years, some businesses recover their investment in four years or less.
Take-A-Ways – Are Solar Panels A Good Investment?
Its only been in the last few years that wind energy is paying off as a good investment in renewable energy. It’s thought that solar energy isn’t far behind.
Before taking on an expensive investment with installing solar panels on the exterior of your home it’s worth talking to a professional installer. They will evaluate the suitability of your structure, its roof, and the general environment. Contact All Energy Solar. They will determine if your home or business is right for solar. They will review the incentives & rebates you may qualify for and provide accurate ROI forecasting.
Disclaimer: This essay is not intended to be expert tax advice or financial advice. It should also not be utilized as the sole source of information for making purchasing, investment, or tax choices. Nor when entering into any legally binding arrangements. Seek the advice of a professional.