Can you save money by installing solar panels for you home? Yes! Home solar is the rare home improvement project that actually pays for itself by putting more cash in your pocket. Whether you compare solar energy to energy from your utility company or you look at an investment in home solar vs. other traditional investment opportunities, going solar stands out as a great opportunity for Colorado homeowners to save thousands of dollars.
And if you care about helping the environment, there’s a huge additional bonus. While you’re saving money, you’re also reducing carbon emissions and helping the environment. An average two-person household that goes solar can reduce their carbon footprint by three to four tons each and every year! That means you will make a very real and important difference when it comes to helping the environment.
Get Out of Utility Debt
Think of it this way. When you’re paying for electricity from the utility company, you are essentially renting your power generation. The money that you pay each month goes out the door and is not coming back. But when you install solar panels on your home, you own your energy production and you are able to lock in your energy costs at a lower rate, saving you money. Your investment in solar will pay for itself and earn you thousands of dollars in additional savings. As an example, one Colorado homeowner with a 7.6 kW system could save upwards of $30,000 in the first 25 years of their system’s life. That is some serious cash!
Not planning to be in your house for 25 years? That ok! You’ll still reap the rewards in the form of higher home value when you sell your home. A 2015 study from the Lawrence Berkeley National Laboratory showed that homebuyers were willing to pay an additional $15,000 on average for a home featuring a 3.6 kW solar system (a relatively small system here on the Front Range). So whether you’re in your home for the long-term or plan on selling sooner than later, you can enjoy monthly solar savings while also looking forward to thousands of dollars in additional benefits with a home solar system.
True Independence: Own Your Power
As soon as your solar panels are installed and your system is turned on, you have a clean solar power plant of your very own, right on your roof. The electricity that you generate from the sun will offset some or all of your electricity bill, and you’ll enjoy those savings for decades to come. Not only do you save money on your current electricity bills, you also lock in your energy costs when you go solar.
According to the U.S. Energy Information Administration, residential energy prices increased nationwide by 21% between 2007 and 2017. This upward trend is likely to continue, but solar locks in your electricity costs at a lower rate. That’s how home solar panel systems save you money each month while also giving you independence from rising and unpredictable energy costs.
Ok, so going solar saves money and helps the environment, but you have many other options for how you can use your money. Why choose to invest in solar? Solar isn’t on the list of traditional investment opportunities, but home solar offers significant returns. Let’s take the example of a 12-year payback period for your home solar panel system. That means you’re getting 1/12th of your investment back each year, or an 8.3% simple annual return. Moreover, that’s with very low risk (the sun has a few billion years left to go) and low volatility (unlike the stock market). In comparison, the Vanguard Intermediate Term Bond Index fund shows a 5-year average annual return of 2.32%. The bottom line: solar lets you enjoy a reliable return on investment while skipping the roller-coaster ride of the stock market.
Get Your Personal Solar Savings Report
Is solar right for your home? It’s easy to find out. Simply request a free quote from one of Namasté Solar’s non-commissioned home solar advisors and we’ll get started today. We’ll assess your roof’s solar potential and provide you with a report outlining how much you could save each month with solar. It’s free, it’s easy, and it’s the first step toward saving money while also making a positive impact to help the environment.