Solar Watt Makes Financial Cents!
August 10th, 2008Most people today would say that they’re “environmentally aware” and realise that we need to reduce our dependence on fossil fuels. However, the main reason people consider using the solar watt for their homes is to reduce their electricity bill. Solar power for homes was available well before the current focus on greenhouse gases and carbon footprints but the knowledge that you’re helping to save the environment as well as your money makes home solar power more attractive than ever.
The upfront cost of retrofitting your house with home solar power can be a strong negative for many homeowners (although some very cheap DIY options are available). However, both state and federal governments offer financial incentives to encourage the use of solar power such as rebates and income tax deductions.
What You May Not Know
A home solar power system can allow you to take advantage of “net metering” in most states. You may not be able to use all of your solar watt output so net metering allows you to essentially sell your excess solar produced electricity to your local utility company. Your electricity meter will basically run backwards during the times that your excess solar produced energy is flowing back into the grid.
Another benefit of home solar power is the possibility of mortgage interest deductions. Many mortgage providers will provide financing to people who want to install a home solar power system. If you have a home loan, you can deduct the interest all in the whilst your helping to save the environment.
Other Financial Incentives
Home solar power will also increase your home’s resale value. In certain states, such as California and New Jersey, where power is at a premium price, a solar power system can add up to $25,000 to the resale value of a home! Therefore, investing in the solar watt can make a lot more sense in the long term than installing new granite kitchen countertops.
Congress is considering the removal of the cap on tax credits you receive when you install home solar power. With the push to reduce greenhouse gas emissions, there can only be more and more incentives to consider alternative energy sources. In fact, at some point in the future, it’s likely that some form of personal carbon trading scheme will be introduced to penalise those who continue to use traditional sources of energy and reward those who use greener solutions.
The incentives to consider using the solar watt have never been greater.
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