Are solar panels a good investment?
Extreme weather like heat waves that can cause power plants to falter and storm surges that can knock out substations have left utility companies scrambling to keep up with soaring energy demands. However due to record droughts, devastating wildfires like the 2018 Camp Fire have been sparked by utility equipment in recent years. In a desperate attempt to avoid starting more fires, utility companies have begun intentionally shutting off power lines.
Additionally, California may face widespread blackouts this summer due to the sharply reduced water levels supplying the state's hydroelectric dams. The first widespread blackouts in 2 decades resulted in 800,000 Californian’s without power last August for over 2 days due to a severe heat wave overwhelming the power grid.
The California utility company Pacific Gas and Electric warned that completing the work to revamp their power plants and transmission lines to cope with the rising danger of hotter weather could take over a decade. Given the unpredictable power outages, many homeowners may be wondering if it is worth investing in solar panels for a more reliable power source.
Investing in Solar Panels
One of the first steps to deciding whether or not to invest in solar panels is to determine if the product would work for your home's location. States like California with more sunlight hours per day will generate more energy, increasing savings potential. The location of your home will also determine how much you save, based on the fluctuating prices of utilities by region. The higher the utility prices in your region the more impactful the savings from solar panels will be. Here are some factors to consider when deciding whether or not to invest in solar panels:
Aside from assessing the number of hours of sun exposure you’ll have by region, you’ll want to evaluate your home's orientation towards the sun and factors like shade from trees. These factors can all affect the overall efficiency of solar panels.
Renewable Energy Certificates
Homeowners with solar panels that create more energy than used can sell it back to utility companies with net metering in the form of a Renewable Energy Certificate. These are issued when one megawatt-hour (MWh) of renewable electricity is delivered to the grid and can either be sold or used as credit against future power usage.
The U.S. Energy Department recommends researching what incentives are available to you with the Database of State Incentives for Renewables & Efficiency (DSIRE). It will determine by zip code which incentives like tax credits, cash back, property tax exemptions, waived fees or even expedited permits you’re eligible for when you install solar panels.
Resale Value of Home
A more clear benefit of solar panels is the potential increase in home value. The financial benefit of lower electricity bills and the increasing unpredictability of utility companies have made homes powered by renewable sources in demand. Your home will also be more appealing to buyers who don’t want to go through additional financing and the installation of solar panels.
The more homeowners switching to solar from traditional energy sources will reduce the amount of carbon and other pollutants that get released into the atmosphere, translating into cleaner air and water.
Financing Solar Projects
Property Assessed Clean Energy (PACE) is a unique financing solution for the growing majority of Americans seriously considering solar panels for their home. With Renew Financial and PACE, homeowners can finance their investment in renewable energy and get peace of mind with these key features:
- Fast approvals, generally within minutes
- 100% financing with no money down
- No min. FICO score required to qualify
- Fixed competitive interest rates
- Payment terms of up to 30-yrs
There are many unique safeguards and benefits built into PACE financing, so homeowners can feel confident in achieving a more dependable and efficient energy source with solar panels.
Are you looking to learn more about financing your solar installation with PACE? Call us today, at 844-736-3934.
PACE financing is subject to approval. Underwriting requirements and restrictions apply. PACE financing is secured by a lien on the subject property and often required to be repaid upon refinance or sale. Homeowners should perform due diligence before selecting a home improvement contractor. PACE financing is private financing that must be repaid in full. PACE financing is not a government subsidy. Homeowners are encouraged to use PACE financing responsibly.
Renew Financial is a private company and not a government entity. The installation or construction of property improvements financed with a PACE assessment is provided through a home improvement contractor or other third-party provider, and not by Renew Financial or a government entity. Financing provided in California through Department of Financial Innovation and Protection License No. 60DBO-90653.