Every hour the sun beams more energy onto Earth than we need to power the planet for an entire year. But can we harness this energy to power our own homes in a way that’s affordable?
It doesn’t cost the earth
“Going solar” is no longer an elite sport for those with the money to spend and the time to research all the various options. As solar power becomes more affordable, and its numerous benefits emerge, more and more homeowners are turning to this inexhaustible source of renewable energy.
Today, over 3% of U.S. electricity comes from solar energy; it is the fastest growing and cheapest source of new electricity in the US. Solar power capacity has grown to an estimated 97.2 gigawatts, which is enough to power the equivalent of 18 million average American homes.
What is a solar PV system?
A solar PV system harvests the power of the sun through photo-electric solar panels. This can power your whole home and the concept is relatively simple. Solar panels, otherwise known as photovoltaic cells, are linked together on your rooftop, facing the sun. The cells are made of semiconductor materials like those found in computer chips. When light from the sun hits the cells, it dislodges electrons from their atoms. As the electrons flow through the cell, they generate electricity. This electricity can be used to power all the devices in your home, just like utility company electricity.
In most places, utility companies will meter your home in a way that keeps track of the energy you generate through solar power, giving you credit and reimbursing you when the electricity grid is making use of that energy. For those who want to go completely off-grid, batteries can store the excess energy you generate, so you can use it when the sun is not shining – at night or on cloudy days. You can also have a back-up generator, so that you are never without power.
The cost savings of going solar
Free electricity after payback
Since 2014, the average cost of solar PV panels has dropped nearly 70%, but as with any new technology, there are costs to consider, and solar panel installation is a big investment. However, there are ways to cut the initial cost of installation. Your cost savings will depend on a number of things: how much electricity you consume, the size of your solar energy system, how much sunlight hits your roof and how much your utility will compensate you for the excess solar energy you send back to the grid.
Once your home is set up with solar power though, you are likely to recover your investment over the next 6-15 years. With a 25 year system warranty, this provides 10-19 years of free energy. Solar Pathways can help provide an estimate of system payback with your quote. After the payback period, your household electricity will be free, with no electricity bills to pay. You can also see the National Utility Rate Database for current electricity rates in your area.
Increase the value of your home
Buying a system should increase the value of your home. A study by Berkeley Lab found that, like renovated kitchens or basements, are viewed as upgrades, adding a sizeable premium on to the value of a house and increasing the likelihood of a quicker sale. Buyers appreciate a future-proofed home!
Today’s solar panels are also far more aesthetically pleasing, efficient and easier to maintain than they once were, making them a much more viable option for both current and prospective homeowners.
Help with financing
Navigating the various financing options for solar can seem complicated, but help is at hand. The Database of State Incentives for Renewables & Efficiency, funded by the US Department of Energy, is a great place to look for financial incentives and policies that support homeowners in making the transition to renewable energy. Just enter your zip code and use the ‘solar technologies filter’ under the ‘technology’ and then ‘renewable energy’ categories. Solar companies should be able help you claim any of these state or local incentives. This is something Solar Pathways can certainly help you with.
Tax credits
Those investing in a solar energy system may be eligible for the Solar Investment Tax Credit, or ITC. This provides a 26% tax credit for systems installed in 2020-2022, and 22% for systems installed in 2023. You can learn more about the ITC here. It’s important to consult with a professional tax advisor in regards to eligibility for the ITC. Solar Pathways does not provide tax advice.
Solar leases and solar energy loans
At Solar Pathways we don’t offer solar leases since they disadvantage customers, but there are other options available. Some jurisdictions offer subsidized solar energy loans with below-market interest rates. New homeowners can also add solar as part of their mortgage, to include financing for home improvements in the home’s purchase price.
With a financed system, loan payments can be similar to the price of your current energy bill. What other investment allows you to transfer a monthly cost you would have to pay anyway into an income-generating asset?
Protecting the planet
Electricity is traditionally produced through the burning of fossil fuels, such as coal and oil. When burnt, these release carbon dioxide into the atmosphere. This acts like a blanket around the earth, warming up the planet and causing climate change. Rising sea levels, wildfires, extreme heatwaves – these are a result of climate change, brought about by our use of fossil fuels.
Transitioning to clean, renewable energy is one of the best ways to stop the dangerous carbon pollution that causes climate change. Using solar power , instead of conventional forms of energy, reduces the amount of carbon and other pollutants that are emitted into the environment. This also translates into less pollution and cleaner air and water.
Futureproofing your home
Energy independence
Investing in solar is one way to futureproof your home and your finances. Those who install solar need not worry about rising energy costs, as they will have secured a fixed energy cost. For those approaching retirement, this is food for thought. Solar Pathways only installs panels that are warrantied for 25 years, so payback periods can be compared to at least 25 years of guaranteed energy at a fixed cost.
Charging electric vehicles
