Solar prices have dropped dramatically, the federal tax credit pays 30% of the cost, and electricity rates continue to rise. These factors all add up to make solar a good investment. A typical 12-year payback period is the equivalent of an 8.3% return on investment. That’s higher than returns on other investment opportunities like the S&P 500 index or intermediate-term bond funds. When you combine all of this with the fact that solar increases the value of your home, the case for solar gets even better.
Electricity production is the #1 source of greenhouse gases. It contributes to unhealthy smog and toxic buildups in our air and water more than all driving and flying combined. Switching to clean solar energy is a positive change you can make at home today. It’s a benefit of solar that doesn’t show up when calculating savings and return on investment: the benefit of knowing we did something to leave our planet a better place for future generations.
By switching to clean solar energy, you own your energy production instead of renting it from the utility. Energy costs continue to go up and utility regulations can change with the political winds. When you own your source of power generation, your cost is locked in at the lower rate. Plus, since solar power is often more affordable than electricity from the utility when you go solar you generate your own power for less, saving you money on your electric bill from day one.
Download the Essential Home Solar Buying Guide and get straightforward answers to the most important questions everyone should ask when considering home solar. Learn how much solar costs, how much you can save, if your house is a good match for solar, and what the next steps are to go solar.
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Your solar panels convert solar energy into electricity. Every panel is made up of many individual solar cells, which are linked together to increase their power-producing potential. Watch a video about solar electricity to learn more.
Electricity flows from your solar cells to your inverter, which converts direct current (DC) electricity into alternating current (AC) electricity which your home and the electrical grid can use.
The power your solar panels produce will feed the electrical demand in your home. Any excess electricity produced by your panels during the day will feed back into the utility grid and you’ll receive credit from the utility to offset your future demand.
When your panels aren’t producing power, your home pulls electricity from the grid. At the end of the month, your utility bill will reflect the net electric usage. Any excess electricity credit will carry over to the following month.