You've probably asked yourself many times, are solar panels a good option for you? For more reasons than one, this year may be the right time to make a choice. Many factors make this a big decision, so our agents would like to point out some of the most significant.
Federal Tax Credits
The amount of the tax credit designed to offset the initial installation costs has been generous but decreasing over the years. From 30% for systems installed before 12/31/2019 to 22% in 2023, the credit expires at the end of this year. If you plan to install solar panels on your home, this is the year to do it so that you can take advantage of that benefit. Installation costs in New Jersey range between $12,452 and $16,848, with the average coming in at $14,650. That means the tax credit will be approximately $3,223. Who would leave that on the table?
Return on Investment (ROI)
The calculations of the return on investment in solar panels are complex, and each article you read will probably confuse you more than answer your questions. It's probably a good idea to read through a few of them just to get an idea of how solar impacts home sales, but ultimately, the average ROI is about 10%.
Reduced Electric Bills
Make no mistake; solar panels are intended to be a long-term solution, so the reduction in energy costs is most accurately measured over the long haul, not the short term. The size of the home and individual usage dramatically affect the amount you can expect to save. Over 20 years, that can amount to between $10,000 and $30,000. If you intend to stay in the house for several years, this is an important factor, but if you intend to stay five years or less, the impact on your power bill will not be as significant. However, you may have the potential for additional savings by selling energy back to the grid.
Environmental Impact
Of all the attributes of solar panels, this is by far the most contradictory. On the one hand, solar energy is sustainable and decreases the carbon footprint of the user. On the other hand, manufacturing the panels themselves does have a negative impact on the environment. Additionally, disposal of panels that are damaged or reached the end of their useful life is limited. The project life of a panel is from 25-30 years.
When Solar panels Arent' the Best Option
In most cases, the positives far outweigh the negatives of going solar. Each customer will have to weigh the pros and cons before making a final decision. As you peruse Ridgewood homes for sale, you'll see which homes are already equipped with solar panels. By comparing them to similar homes without solar, you have some insight into their effect on the sale price. A deeper dive into the histories of the houses will show you a little bit of the impact of solar panels on energy bills. But you must also consider your situation. If you don't intend to stay in the house for a long period, the reduced electric bills, increased home value, and environmental impact may not compensate for the cost of installation. Whatever you decide to do, based on the expiration of the tax credit at the end of the year, 2023 is the time to do so.
Whether you're considering buying or selling a home in the Ridgewood area, our real estate professionals can help with all of your questions and concerns. Contact us for more information.
