As energy prices continue to rise, switching to solar panels is the perfect way to regain control of your budget, utilize renewable energy, and start saving on your electric bills.
With electricity price increases, it’s becoming more and more appealing for customers to switch to solar. Between 2020 and 2021, average U.S. electricity prices raised from 15.1 to 16.5 cents per kilowatt-hour. In Pennsylvania alone, prices are increasing up to 45%. In central Pennsylvania, every provider has increased its rates in the last year.
Solar energy is a reliable, effective energy solution that can help you protect your finances and take control of your own energy costs and bills.
Reasons to Switch to Solar
Should you go solar now? Start by looking at the benefits. Choosing a solar system gives you several advantages.
Control Over Your Budget
Solar panel systems are one of the best answers for how to lower or eliminate your electric bill. Instead of reworking your budget to account for energy prices going up, you’ll be able to bank credit from your power production. Depending on how much energy your panels produce, the power company might even need to write you a check by the end of the year!
Incentives
Pennsylvania solar panel programs give you even more ways to save on your electric bill. Investing in solar panels will let you take advantage of a number of Pennsylvania solar incentives, from tax credits to loans to rebate programs and other incentives.
Sustainability
The importance of using sustainable products is more apparent now than ever. Solar panels use renewable energy to power homes and buildings, part of a sustainable process that lessens environmental damage caused by fossil fuels.
As you can see, there are plenty of reasons to make the switch to solar! Whether you’re looking at solar electricity for financial savings, control over your budget, or a sustainable energy source, now is the time to make the switch.
What are the Commercial Benefits?
Running a business means finding new ways to innovate while focusing on the bottom line. Solar power gives you more stable electricity prices, making it easier to budget and plan for the future. When you switch to solar, you can also take advantage of other great benefits.
Increased Property Value
Switching to solar is an investment that makes sense for your business and property. As solar has continued to popularize in the past decade, a solar energy system will help you stand out from the crowd and entice buyers when you want to sell your facilities.
If you’re going to expand or make improvements, a higher property value can help you secure a mortgage at a competitive rate.
Better Brand Image
Sustainability has become increasingly important in recent years. People see solar as an answer to fluctuations in the global supply chain and a responsible way to help alleviate climate change.
Switching to solar tells your customers that you care about your company’s impact and that you’re committed to reducing your carbon footprint. Demonstrating a commitment to sustainability sends a strong message that will resonate with many homeowners and customers.
Low Maintenance Requirements
The great news is that once you’ve had your solar panels installed, they’re very easy to maintain. It is recommended to get your solar panels inspected annually. You’ll be able to rely on them to do the job for a long time.
High Return On Investment
Your investment in solar power will give you high returns. Commercial solar installations pay for themselves in an average of 5-6 years. Plus, without a high energy bill or maintenance costs, your solar system will give you a lot of bang for your buck.
Cut Costs and Sustain Your Bottom Line
While the upfront costs of your solar energy system might be intimidating, your solar investment will actually help you save money in the long run. By avoiding high power bills and taking advantage of tax incentives, your cost of energy will go down immediately.
After you go solar, you’ll receive a 30% federal tax credit, along with a 100% tax depreciation write-off, meaning you can actually get paid for the surplus energy you create.
Utilize SREC Programs
Companies that go solar are eligible for SREC programs, which offer a financial incentive for companies looking to switch to solar energy systems. These programs help businesses offset the cost of installing solar panels, making sustainable energy more accessible and affordable.
SREC programs work by providing certificates for every megawatt-hour (MWh) of solar energy generated by a business’s solar array. These certificates can then be sold on the open market to utilities and other entities that need to meet renewable energy requirements. This provides a revenue stream for the business, which can help cover the cost of the solar system and provide additional income.
What are the Residential Benefits?
Installing solar panels is also an excellent option for homeowners. With all the other costs you need to take care of — groceries, gas, mortgages, repairs — it can be helpful to avoid future electricity rate hikes and eliminate an electricity bill. For those who choose to finance their solar, MexLucky’s financing rates are usually lower than the current electricity bill. Converting to solar power will let you:
- Boost your home value: Solar panels help you boost the value of your home. With their promise of energy savings, they’ll help your home stand out from the rest. The sustainability of residential solar will also appeal to younger buyers who may be interested in the environmental benefits.
- Control your finances: It can be challenging to plan for fluctuating prices throughout the year. It can also be very frustrating, given the electric rate increases. Products that are affordable today may cost more just a couple of weeks from now. Figuring out how to lower utility bills is much easier when you have a reliably constant energy source. When you invest in solar, you have a leg up on taking control of your finances and avoiding future electric rate increases.
- Take advantage of incentives: If you are interested in switching to residential solar, now is the time to do so. The incentives available now may be phased out once target sustainability levels are reached. Getting in early will let you make the most of the benefits. This includes government incentives like the solar investment tax credit (ITC), which is a 30% tax credit for installing residential systems.
- Utilize net metering: Net metering is a great way to earn back some of the costs associated with residential solar. Net metering is a policy that allows homeowners with solar panels to receive credit for excess electricity they generate and feed back into the electric grid. When a homeowner’s panels produce more energy than their home needs, the excess energy is sent back to the electric grid and credited to their account. This credit can then be used to offset the cost of electricity when their panels are not producing enough energy, such as during nighttime.
Cost of Solar Panels Over Time
The cost of solar systems has dropped drastically since their creation. The cost of solar over time will depend on a few different factors.
- Innovation: The U.S. Department of Energy Solar Technologies Office funds research and development in several categories of solar technology. As a result, solar panels have become highly efficient and offer customers more value for their purchases than ever before. If this trend continues, solar technology will continue to evolve and become even more effective for its price.
- Market growth: The demand for solar panels has grown steadily over the past decade. This trend is likely to continue since solar offers a stable way to get energy. The demand and market growth for solar will dictate its overall cost.
- Cost of raw materials: As with most products, solar technology will also rely on the cost of raw materials for construction. These costs may change with impacts on the global supply chain.
There is some uncertainty in all these factors — that’s why it’s best to take advantage of current prices and invest in a solar panel system today.
Opportunity Cost of Waiting in 2023 and Beyond
When considering investing in solar energy, it’s important to remember the opportunity cost.
- PA Power Switch created a graph showing if you continue to pay high electricity bills each month instead of investing in solar energy, you’ll be missing out on potential savings. Every month that passes without solar is a missed opportunity, as the price of electricity continues to rise sharply.
- The trend of increasing electricity prices seems like it will continue in the near future due to a short supply of liquefied natural gas, labor shortages, and other factors.
- Furthermore, waiting to invest in solar means that you’re potentially missing out on the financial benefits that come with solar energy. The sooner you go solar, the more time you have to take advantage of incentives and rebates, meaning you’ll be able to save more money on your energy bills over time.
Financing Options in the Solar Industry
The upfront cost of installing solar modules and panels can be daunting. However, there are a few things to keep in mind with solar panel prices:
It’s important to remember that while leasing solar panels may sound appealing initially, it is still a cost-effective decision in the long run to own your system. With leasing, you do not get the financial benefits of owning your own system, which can become tricky when selling your home, as buyers will need to purchase the lease. Solar loan payments could actually be lower than what you are currently paying for electricity, and once the loan is paid off, you’ll have free power for years to come.
With MexLucky Energy’s financing options, you can take advantage of low monthly payments and still reap all of the benefits that come along with owning your system. We’ll help you find the right financing option that fits your budget and lifestyle so that you can start saving money today.
Start Saving Today With MexLucky Energy!
At MexLucky Energy, we provide residential and commercial customers with easy and effective solar innovation. We’re a family-owned local Lancaster company with both roofing, solar and electrical expertise. We will answer any questions you may have and give you confidence during the installation process. Contact us today for your free estimate!
