3 Ways Solar Panels Benefit You Financially

If you're a homeowner, you're probably always looking for ways to improve efficiency and save money. Here's how to save with solar.

If you’re a homeowner, you’re probably always looking for ways to improve efficiency and save money. Getting solar panels on the roof is one such solution. Their photovoltaic cells harness sunlight as household electricity that you can either use or store in a battery for later. Installation requires an initial financial investment, but here’s how they save you money in the long run—particularly in a sunny state like Hawaii.

What Are the Financial Benefits of Solar Panels?

1. Electricity Generation

The average American household’s yearly electricity bill is nearly $1,400. You can eliminate all or most of this amount by generating your own photovoltaic power. In fact, many people generate more than they can use, selling the remainder back to the power company in a grid-tied system. This potential cash flow lets you pay off your system more quickly or direct the funds to other uses. Honolulu is an ideal location to capitalize on solar energy since it enjoys more than 270 sunny or partly sunny days per year. 

2. Increased Home Value

By installing a solar system, you boost the resale value of your home by an average of 4.1%. You not only enjoy the monthly benefit of no electricity bill while you own the home, but you recoup much or all of the original outlay when you sell it. For example, on a home worth $250,000, a photovoltaic system would boost the property value by more than $10,000.

3. Tax Benefits

You also enjoy federal and state tax benefits for installing a solar system. The federal credit is currently 26%, which falls to 22% at the end of 2022. Hawaii likewise offers a 35% tax incentive on solar installation, although the benefit is capped at $2,250. Be aware that the federal benefit has no limit, so a $20,000 photovoltaic investment would net you $7,450 in tax savings when filing your yearly return.

If you want quality solar panels at a competitive price, contact Holu Hou Energy in Honolulu, HI. They serve homes and businesses throughout Oahu and the rest of the state. They specialize in multi-dwelling residential and commercial solar, offering financing in addition to the tax incentives buyers enjoy. Call (808) 371-7514 to discuss solar panel options, pricing, and installation.