Today, renewable energy and environmental sustainability are buzz topics.
One of the sources of renewable energy is the sun, which has immense energy to power our civilization in a safe and sustainable manner. It is also the most abundant source of energy on the planet.
The sun’s radiant energy may power homes, companies, and even cars when transformed into heat and electricity. This explains why more households are thinking about installing a home solar system, especially in the face of rising energy costs.
However, investing in solar energy comes with benefits and demerits. As such, before you make the decision to switch to solar energy, it is important that you weigh both sides to make an informed decision.
In this article, we explore the pros and cons of investing in solar energy and key tips to consider when investing in solar energy.
5 Benefits of Investing in Solar Energy
1. Renewable energy source
Since solar energy is a renewable resource, you can always consume more of it.
Solar power is clean energy. It doesn’t produce any “greenhouse” gases that trap heat, such as carbon dioxide. It prevents the environmental harm brought on by drilling or mining for fossil fuels. In contrast to power facilities that use steam turbines to produce electricity, solar energy uses little or no water.
2. Can reduce your electricity bill
Your home’s solar energy system can help you save money on your electricity bill and lessen your dependency on the grid.
There may even be some residential solar energy system owners who have extra energy they can sell to the utility. Homeowners receive payment from the utility instead of paying for electricity.
To reduce your home’s electricity costs, you might not need to purchase a whole solar energy system. To help save money, simply choose solar lights, which are illuminated by the sun rather than your home’s electrical system.
3. Adds to your home value
Houses that are powered by solar energy or have them installed are likely to fetch a higher price from buyers.
When weighing the benefits and drawbacks of solar energy, the money saved on electricity bills and the money made from selling excess power back to the utility both go in the positive column.
Solar energy systems for homes are highly regarded and can raise the selling price of a house. A solar-powered home’s property value can be up to $15,000 higher than that of its neighbors.
4. Low maintenance costs
Since there are no moving parts that need to be replaced over time, solar panels are simple to maintain.
To maintain them functioning properly, just keep them clean and in good physical shape. Investing in solar panels can be a simple way to obtain your money’s worth due to its low maintenance requirements and average lifespan of 25 years.
5. Generate electricity in any climate
In any climate, solar energy systems may produce electricity.
The fact that solar energy might be temporarily disrupted by weather is one of its drawbacks. The amount of electricity you create is less on cloudy days.
However, the cold has little impact on output. Snowfall can actually benefit your solar system since it cleans the panels as it melts and enhances the quantity of light reaching your panels by reflecting sunlight. More electricity is produced as a result.
3 Downsides of Solar Energy
1. Initial costs are high
The cost of solar energy, which is the most frequently mentioned drawback, is decreasing as the sector matures.
The equipment is not cheap to purchase and install initially. Leasing options, though, can lower your initial outlay if cost is a concern. Before the system pays for itself if you decide to buy, you will need to live in your house for a while.
It’s a long-term investment that renters would do best to avoid.
2. Doesn’t work for every roof type
Solar panels won’t function properly on every rooftop.
Orientation is crucial. You won’t have enough solar energy if your roof isn’t towards the sun. In general, sloped roofs perform better than level ones.
Installing solar panels is simpler on roofing materials like metal, tiles, and asphalt shingles. Installation may cost extra if your space is constructed of different materials. Solar panel support is one of the characteristics of energy-efficient roofing.
3. Dependent on sunlight
It should go without saying that solar panels require sunlight to produce power.
They can be ineffective during storms and overcast days, when you need electricity to light your home. They also won’t create it at night when you need it. If you want to use solar energy only to power your home, your solar energy system needs batteries.
One of the more pricey parts of a solar energy system is the battery. They do require meticulous maintenance to extend their lifespan because, unlike solar panels, they do wear out.
When comparing wind power to solar power, wind will continue to produce electricity as long as there is enough wind, even at night and during storms. Both are frequently used in residential systems.
5 Key Things to Consider Before Investing in Solar Energy
1. Do your research on state-by-state solar costs
Before you investigate how you are going to pay for it, it’s easy to find out what you might want to buy and what it might cost. You can compare state quotes using sites like EnergySage, which gives you a better idea based on real-life factors such as the size of the system.
2. Seek out local energy financing programs
Check if your state’s energy office or local electric utility offer financing options for solar energy. Ohio, for example, has a state program that offers a reduced rate on a solar loan with certain lenders.
3. Get solar loan quotes from multiple lenders
Look for quotes from three to five sources, being sure to carefully consider the terms and circumstances.
A homeowner’s local bank, credit union, national bank, or a specialized company called a “green bank” that concentrates on financing for green initiatives are all potential lenders. Green banks could offer much more robust products.
4. Consider solar installation company offers carefully.
While banks may offer short-term loans at reduced interest rates and for cheaper costs, the majority of installers offer loans for a term of 15, 20, or 25 years.
Interest rates can vary significantly based on the loan size, term, and creditworthiness of the borrower, among other things. Typical loan amounts vary from $1,000 to $100,000, and for borrowers with great credit, annual percentage rates can range from around 6% to roughly 36%.
5. Be careful about lending risks that can lead to home foreclosure
Always inquire about the costs that come along with the loans being given in addition to the interest rate because fees can run into hundreds of dollars. Know any additional terms, conditions, and choices that might exist.
Final Thoughts on Investing in Solar Energy
Solar has arguably been the most expensive of renewable energy options, but prices have been fast declining. Given this, investing in solar energy is a huge plus when you look at it from a long-term point of view. Especially if you compare its advantages to the rising oil prices and its impact on energy costs.