Benefits of Going Solar
The sun in one hour radiates more energy onto earth than the entire human population uses in one year. It is estimated by scientists that the sun, in its current form, is half-way through its life span and has about 5 billion years left. Let’s face it – that is a lot of solar energy!
The advantages of solar are clear. You can save money, raise the value of your home and community, and have greater independence from imported fossil fuels, a brighter, richer and cleaner environment. Most importantly, you can get relief from the volatility of energy prices.
Currently, solar power provides only 2 percent of the power used in the United States. As solar technology improves, the cost of switching to solar energy use will drop. This will help improve our ability to capture and use the sun’s abundant energy.
Helping The Environment
Using solar energy is a great way to not only save money but also help the environment. A 5-kilowatt solar system can reduce greenhouse gasses by up to 9,000 pounds per year!
Own Your Power
One of the most significant benefits of solar is declaring freedom from the utility company. As we say here at SPM, “start owning your power.” With us, you can!
Increased Costs without Solar
The U.S. energy costs will continue to increase as more homeowners go solar. As more people generate their own electricity, there will be fewer and fewer people paying the utility companies.
How do you think the utilities will pay for the massive costs of maintaining the grid with less revenue?
You are correct, the fewer people paying electricity bills, the utilities will have to pay dramatically higher utility rates to compensate for lost revenue, resulting in higher utility bills.
Increase Your Property’s Value
Homes with solar, based on an article from Money Magazine, sell on an average 4.1% more. For example, a $226,000 home would be worth $235,040 which is an increase of $9,040.
From the same study, there’s evidence that they also sell faster than non-solar ones. As more homebuyers become interested in the benefits of solar, demand for properties with solar panels will continue to grow.
How Do Solar Panels Increase Home Value?
The energy savings provided by solar panels translate into better value for your home. The National Renewable Energy Laboratory (NREL) found that every dollar saved on energy through solar increases home value by $20.
That’s a return on investment of 20 to 1. When you sell your house, these better savings equal bigger profits.
According to Zillow, homes with solar panels sell for approximately 4 percent higher on average than homes without solar energy. That means an added value of about $9,200.
Homeowners who switch to solar can see an impressive return on investment (ROI) through their electricity bill savings. The average American homeowner with a solar panel system can start seeing an ROI in 6 to 8 years, that’s an annual return of 16.67% to 12.5%, guaranteed from savings on your electric.
Add to the raised value of the home, that payback can be, for example, 4 to 6 years, or 25% to 16.67% ROI. Pretty awesome, wouldn’t you agree?
The truth is, solar panel systems offer greater returns, the longer you have them. They become tax-free returns since they’re savings, not income. The advantage of solar energy is that even when you decide to sell your house, you still are expected to see a return on investment thanks to the increase of your property’s value due to the solar panel installation.
The Solar ITC Credits and Illinois solar incentives, combined with the current process of net metering, make it a perfect time to consider solar. Illinois solar incentives and federal tax credits cover about 45-64% of the purchase price of solar, which helps your ROI payback period and faster ownership of producing your own energy.
The Illinois Power Agency sets the prices for Illinois SRECs. Click here to see an information brochure on the program: https://illinoisshines.com/wp-content/uploads/2021/03/DG-Brochure-Update-3-25-2021-1.pdf
Note: These SREC’s are only provided in limited amounts, and once used are reduced, and then will expire. Take advantage of your incentives while they are available. The number of SRECs which a home solar system will produce over 15 years depends on the size of the system (measured in kilowatts). The position of the panels on the home is relative to the sun (south-facing is best), shading, and a few other factors.
Here is an example of a fairly typical system
System size = 8.4 kWdc
Est. production over 15 years = 146 MWh
Est. SRECs produced = 146 SRECs
Price per SREC (group B) – Ameren Utility = $85.10
Total incentive = $12,424
(As stated above, for almost all residential systems this incentive is paid shortly after your system is installed. For very large residential systems these benefits may be paid over four years).