Benefits of Installing Solar When Remodeling

Updated: Jun 13

When considering home improvements, priority should be given to the renovations that offer a significant payback. For every $10 that goes to remodeling a home, an average of $7 is recouped when the house is sold. Thus, it is essential to remember that most money spent on renovating a home cannot be recouped. However, solar is one of the few home upgrades guaranteed to offer a payback on every dollar spent. Depending on a few factors, solar can return its value three or four times over its lifetime regardless if you sell or continue owning the home.

Cost of Solar Power

Unlike other remodels, installing a residential solar system comes with tax credits and various other incentives to save you even more money on the purchase. For example, a small 4kW solar system can cost around $9,500 or over $20,000 for a sizable 10kW system. In comparison, bathroom remodels in an average-sized home will cost approximately $11,000, while a complete kitchen remodel may cost over $40,000.

Installing a solar system is considered a domestic energy production investment which means, according to current guidelines, all solar project quality for a 26% federal tax credit against the cost. In addition to tax credits, there are many incentives offered at the state, county, and local government levels. For example, did you know some utility companies will even provide incentives for installing solar and selling the power back to the grid?

How to Finance a Solar Upgrade

Most people do not have $15,000 that they can take out of their savings to purchase a solar energy system. Luckily, there are numerous methods to finance a solar installation. One option is to take a solar loan. It is a subcategory of home improvement loans with multiple payment options and terms.

For instance, homeowners can opt for 10-year loan repayment or 25-year repayments. As a result, it ensures that anybody with a home can afford to pay the loan back by picking a schedule that allows them to have monthly payments that fit into their budget. However, when choosing to use a solar loan to finance their solar system, borrowers can still take advantage of all federal, state, and local incentives. In addition, incentives may be built into the loan structure, further reducing monthly payments. For instance, if a solar system costs $20,000, the cost is reduced to $14,800 once the 26% federal tax credit is factored in the first year. Therefore, when setting up the repayment structure, that will be considered. Any rebates and credits available when the solar system installation is complete will be factored into the loan repayment.

A Solar System Pays Itself Back

When a homeowner decides to install a solar energy system, he/she will see a drastic decrease in the electricity bill; in some cases, it essentially disappears. In its place, there is a much more predictable payment for the solar loan. The benefit of these payments is that they are constant, unlike power bills, which keep rising unpredictably. A typical solar system will pay for itself within ten years on average.

Besides that, a solar energy system installed by TriSMART Solar comes with a warranty that lasts 25 years. Its whole productive lifespan can go past that to up to 30 years. As a result, a solar system can pay itself back up to four times the initial cost. Another benefit of solar is that it boosts the home's resale value.

If you are looking for a home upgrade that will be worth every penny, you can never go wrong with solar. Solar remains a very smart decision with Texas Solar Power Incentives and will definitely save you money! Start exploring how solar can benefit your home and budget by contacting us today!

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