Remember when your utility bills were reasonable every month? In this modern world, there are so many devices that drain energy from your home. The utility bills seem to keep going up. But there is a way to take control of that cost forever.
Solar energy is simply sunlight – also known as electromagnetic energy – generated by the sun. While every location on Earth receives some sunlight over a year, the amount of solar light that reaches any one spot on the Earth’s surface varies. Solar technologies capture this light and turn it into useful forms of energy. Southern Colorado has between 250 and 300 days of sunshine a year! That’s a lot of light to potentially convert into energy.
And when house hunters are shopping for their next home, solar panels are a popular upgrade they’re looking for. One survey found that 46% of homeowners say they’re seriously considering investing in solar panels for their homes.
Do Solar Panels Raise Your Home’s Property Value?
Installing solar panels in a home not only helps to reduce current monthly utility bills; it can potentially increase the home’s value. Home sale data has found that installing solar panels on your home can raise the property value by up to 4.1%. That’s when compared to homes with no solar panels. That’s an additional $9,274 for the median-valued home in the U.S!
Do Solar Panels Raise Your Home’s Resale Value?
Having solar panels installed on a home not only increases its value and energy efficiency, but it can also make it sell more quickly. Compared to other homes without solar power, your home could sell up to 20% faster. This too, is part of the value that solar power can add to your home and your life.
What is the Colorado Real Estate Tax Exemption?
Although your home value may go up when you install solar panels, there’s no need to stress about an extra real estate tax burden. Thanks to the Property Tax Exemption for Residential Renewable Energy Equipment, purchasing new solar panels won’t make your real estate taxes rise (even if your home value does thanks to them). This exemption covers the appreciation of your home due to the solar install.
Colorado boasts another tax incentive too. When you add a new rooftop solar panel system to your home in Colorado, you won’t pay any sales tax on the installation or materials. The exemption is for 100% of a renewable energy system’s sales tax. Depending on which Colorado city you live in, this can save you 2.9% to 8.3% right off the bat.
Is there a Federal Solar Tax Credit?
The Solar Investment Tax Credit (commonly called the ITC) was first offered via the Energy Policy Act of 2005. Thanks to its popularity and its contribution toward renewable energy goals, the ITC has been extended multiple times. While it was originally set to expire in 2007, the current federal solar tax credit extension is set to expire in 2024. Homeowners can use the federal tax credit for battery storage, installing new systems, and more!
How Does the Federal Tax Credit Help?
The bottom line is this: When you install a solar power system between 2021 and 2022, the federal government rewards you with a 26% tax credit for investing in solar energy. In short, 26% of your total project costs (including equipment, permitting, and installation) can be claimed as a credit on your federal tax return for that year. It’s important to note that while the tax credit will continue for two more years, in 2023 the credit percentage will drop to 23%, making now an optimal time to make your home a solar home.
Solar Helps You Invest in a Better Future
While we’re all happy when our homes appreciate in value, that’s not the only way solar benefits our future. Fossil fuels are a limited resource – at current consumption rates, they’ll eventually be depleted. Some of the least favorable predictions state that the decline of fossil fuels will occur within the first half of this century. Fossil fuels and gas are major contributors to climate change, while nuclear energy can leave behind a toxic legacy.
Solar power, on the other hand, works with a reliable and predictable energy source. According to astronomers, the sun will last for five billion years! If you want to find a technology with long-term availability, look no further: solar power is the answer. On top of that, sunlight is free: the only costs involved if you own a solar system are the initial investment and periodic maintenance.
Installing a solar system allows homeowners to reduce the impact of any electric energy price ups and downs of the fossil fuel market. Energy prices keep rising. But solar power savings stop the financial rollercoaster. The energy output of solar systems remains stable year after year. However, the actual monetary savings gradually increase. As electric utility rates rise, you’ll continue to save. If energy is 10% more expensive in 5 years, your solar system will save 10% more money! Reach out to Steel City Solar today for your free estimate and find out what solar can do for your home’s value.