Solar is a renewable source of energy that accounts for approximately 10% of global energy production. It’s gained popularity over the last few decades due to increased efficiency and growing concerns over environmental conservation.
However, one factor that makes solar appealing to most households and businesses is the financial benefit. Solar allows you to save, and below, we will look at how it does that.
Low electricity bills
Solar power systems can serve as a replacement or supplement to the national grid. Once you install the system, you will immediately start enjoying lower electricity bills.
Since solar energy has a widely accessible power source, the sun, the running costs are low. Moreover, the system is efficient. As a result, enough power can be reduced to run a household from a small set-up.
You can say goodbye to costly electric bills if you go off-grid and use solar as your only power source.
Earn from power generation
If you are hooked to the national grid and operate a solar power system, you can get a credit on your power bill. Yes, your read that right. You can make money from your solar panels.
When your system generates surplus power, the excess is fed into the national grid. Therefore, you get credit for supplying power to the council grid.
Industrial plants that operate sizeable solar power systems often generate enough power to sell to local distributors. Although there are some tax implications and licensing required, it’s still a source of revenue.
Low lifetime costs
Solar power systems have a high initial cost. Therefore, purchasing solar panels, inverters and power batteries need one to dig deep into their wallet. However, the cost of running the system is relatively low. As a result, the overall lifetime cost is lower than most sources of energy.
Although the upfront cost is intimidating, solar is one of the most financially sound investments to make if you want to save on power. How much you save on your bills quickly offsets your expenditure.
Solar panels also come with warranty packages to cover faults. Other components used in the system also have long years of operation stretching to almost two decades. Therefore, there are no considerable replacement costs incurred during the operation of your solar power system.
There are several financial incentives available for solar installations and operations. The incentives are aimed to cushion the high upfront cost and encourage the transition to solar energy. They include:
- Affordable financing options
If you are looking to install a solar power system, you can take advantage of low-interest finance options. The options predominantly cover the upfront costs. However, how much you can access depends on the size of the project, your credit score and the financier.
You can also secure a grant to fund your project. Stakeholders often offer grants in solar energy, including the government. The terms are usually friendly, and the incentive can extend to cover some operational costs.
- Tax incentives.
Solar components enjoy tax breaks from several governments. The aim is to reduce the cost of the products. Moreover, users can get tax rebates on installation. This allows businesses to deduct a certain percentage of the installation cost from their federal tax liability.
Low opportunity costs.
Power outages create high opportunity costs for businesses and individuals working from home. Having a reliable power supply like solar energy ensures there are no interruptions to business processes and no revenue is foregone.
Moreover, a reliable source of power allows users to plan and create solid deadlines. Solar panel installation Sydney will save you a lot of money. There is no losing once you have invested.