Home Solar Power Can Makes Sense Financially
Saving the environment and reducing your dependency on electricity based on fossil fuels should be enough to have you contemplating home solar power. However, while professing to love environmental causes, the main reason people look to solar power is to reduce their electric bill, not necessarily out of altruism.
The initial cost outlay of retrofitting your residence with home solar power is a strong deterrent for many homeowners. However, the government, both state and federal, does offer monetary incentives to encourage you to look ahead to the future of electricity, typically through the use of rebates and income tax breaks.
What You May Not Know
With a home solar power system, you as a homeowner can take advantage of what is called net metering in most states in the country. What do you think happens to the electricity your solar system produces that you cannot use? With net metering in place, you are essentially selling back your solar produced electricity to the local utility company during those times you do not use it all. Called on the grid home solar power, your utility electric meter will run backwards during those times that your excess solar produced energy is being sold back.
Another financial incentive to purchasing a home solar power system is the possibility of mortgage interest deductions. If you take out a home equity loan or even refinance your home, you can deduct the interest all in the name of going green and saving the environment, a little at a time. Many mortgage companies are required by the federal government to provide financing to those people who want to improve their residence by installing a home solar power system.
Other Financial Incentives
While home solar power may put an initial dent in your pocketbook, you should look ahead to your future to anticipate what solar power may do for your home's resale value. In certain states where electricity is at a premium price such as California and New Jersey, a solar power system can add up to $25,000 more to the home's resale value. Therefore, an investment in a home solar power system makes more sense in the long run than the installation of granite kitchen countertops.
In addition, Congress is contemplating removing the cap on the tax credits you receive when you get home solar power. The future is looking good for those people who are investing in solar power. So why not contemplate this environmentally conscious move yourself?
