Transitioning to a clean and sustainable energy source can reap benefits for both the environment and the investor. Within the last 10 years, the price of solar panels has dropped significantly in order to accommodate the growing demand for clean energy. With the availability of New York state incentives and federal rebates, switching to solar energy has become more affordable than ever before.
Factors to Consider
The first step in understanding how much solar panels can potentially save is to consider the two most important factors—the price you currently pay on your electricity bill and the price you will pay after switching to solar. Although solar installation prices vary across regions and physical properties, the added value of solar systems, promising financial incentives, and net metering, are all factors that can save you money.
How Does Switching to Solar Save Me Money?
A number of factors contribute to the economic benefits of going solar. Below are some of the key reasons why a solar panel installation will save you money for years to come.
#1. Real Estate Value
Installing solar panels increases your real estate value. According to Zillow, a solar panel system is considered a great real estate investment and can increase home values by as much as 4.1%. As the demand for more sustainable energy sources increases, the presence of a solar panel system on real estate property has become more sought after.
#2. Federal Tax Credits
In 2021, homeowners are eligible for a 22% tax break just for switching to solar. The Solar Investment Tax Credit can save an estimated $5,000 for the average homeowner.
#3. NYSERDA Incentives
New York is considered one of the fastest growing states in the solar industry due to the availability of NYSERDA incentives. The Affordable Solar incentive increases the amount received for households earning less than 80% of the median income in the area. New Yorkers may also qualify for the 25% New York State Tax credit that finances 25% of qualified solar system equipment up to $5,000 for residential uses. Additionally, New York also offers a 15-year real property tax exemption for renewable energy systems.
#4. Net Metering
Net metering allows for homeowners to earn energy credits for the amount of energy generated by their solar panels. Solar panels will generate a full day’s worth of energy, however not all the energy is fully utilized. Therefore, this excess energy will be directed back to the grid and your utility company will convert this energy into energy credits. When the sun is no longer available, your utility company will send you back those credits for your property to use. The meter keeps track of transferred energy and any amount that is taken back. A net zero electricity bill is possible if the homeowner uses an equivalent amount of energy generated by their solar panels. Electricity bills can be greatly reduced by switching to solar.
If you want to save with solar, reach out to YSG today. YSG has been working in the solar industry for over a decade and will identify the ideal solar project for your needs, ensuring the biggest savings and the best return on your investment. Call the office at 212.389.9215 or send us an email today to learn how much you could save by going solar.
YSG Solar is a project development company responsible for commoditizing energy infrastructure projects. We work with long-term owners and operators to provide clean energy assets with stable, predictable cash flows. YSG's market focus is distributed generation and utility-scale projects located within North America.
Inline image courtesy of Solar Cost Guide.