Want to significantly lessen your carbon footprint and save money on your monthly energy bills? Invest in solar panels. Installing a solar system will also quickly enhance your home’s value. But is it worth your money? Read on to discover the benefits, which will allow you to easily make an informed decision.
Buy or Lease Solar Panels: Two Options at Your Disposal
Buy or lease? And which option is ideal for you? Discover the differences between buying and leasing solar panels.
Leasing Solar Panels
Do not have the money reserves needed for upfront investment? Leasing solar panels is the best option. However, you don’t own them; instead, a third party owns the solar system or equipment.
Pros of Renting Solar Panels
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No or little upfront cost
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The solar company maintains the entire system
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Lower monthly energy bills
Cons of Renting Solar Panels
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No significant boost in property value
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When you decide to sell your home, it can become a logistical headache
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Less energy bill savings over the system’s lifetime when compared to purchasing
Buying Solar Panels
When you purchase a solar system, you pay for or finance the entire installation expense. The equipment and panels belong to you. When you decide to purchase solar panels, you own the whole system, and you’ve got to pay those high upfront expenses. However, there are several pros to it.
Pros of Buying Solar Panels
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There is a potential for higher energy cost savings over the life of the solar panels.
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The solar panels and equipment add to your home’s value if you decide to sell it
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You can claim state and federal tax credits to offset the expenses
Cons of Buying Solar Panels
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There is a higher upfront cost of installing solar panels and equipment
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You’re responsible for solar panel and equipment maintenance
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High interest rates may make a loan too expensive
Potential Energy Savings
Another massive benefit is a reduction in electricity bills. Installing solar panels reduces your energy expenses, which can help you save money on monthly utility costs. Your utility expenses will decrease when your home’s energy needs rely on solar panels.
When you install rooftop panels, you can save 95.0% of your monthly energy bills. If you’ve got an off-grid setup, you can entirely eliminate all your electricity expenses. The upfront installation cost may seem like a lot of money. However, it’s worth it. This is due to the long-term energy savings from the initial investment.
Solar Panels Elevate a Home’s Value
A solar system especially increases your property’s value. Various factors, like energy savings and the general charm of solar energy to prospective buyers, can positively influence the extent of the increase.
How Does Solar Increase Your Home’s Value?
Did you know that every pound a solar panel saves you on energy bills boosts your property’s value by £20k? Properties with solar panels and equipment sell 4% higher compared to those without.
Currently, the demand for solar panels and equipment is higher than before. Potential home buyers are increasingly becoming environmentally conscious. And that means they want to save money on energy bills.
It’s this demand that, in most cases, increases the value of your property featuring solar panels. However, several factors will determine whether or by how much the value of your home will increase. These factors include the following:
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Location: Areas with a lot of sunlight, higher electricity bills, and homes in regions or neighbourhoods that emphasise environmental sustainability will have increased value.
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Electricity rates in your area: Homes with solar energy help homeowners minimise their usage and save money on bills. These savings tend to be significant in areas with higher average energy costs.
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Local solar market: Most states provide tax incentives to entice homeowners to switch to solar energy. That means the transition to solar power is affordable and expands the state’s solar potential. Solar-powered properties in solar-friendly states will always sell at a higher market value. Their counterparts in states with no or little solar power growth will have a relatively lower market value.
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Owned vs leased solar system: Property owners need to be sure they can easily and legally transfer their solar panels and equipment to new owners when selling their homes. Full payment significantly increases your home’s value as it allows for a seamless transition for the new owner. A leased solar system delays the transfer process. Also, this delays your property’s sale if the prospective buyer doesn’t meet the leasing company’s needs and requirements.
Solar panel installation represents a transformative step towards a sustainable lifestyle. By simply harnessing the sun’s power, you can not only minimise your carbon footprint but also contribute to a clean planet. You can also significantly boost your home’s value.
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