Is Solar Worth The Investment?

Why is solar-renewable energy such a great investment?

Your investment earns its weight in sunshine in at last 7-ways:

1)  Less utility energy needed

2)  Displaces energy that is otherwise purchased from the utility

3)  Non-usable Energy

Some energy which you are metered and pay for is non-usable “dirty” energy, but negligible when solar-generated making your energy mix more efficient.

4)  SREC’s – Solar Renewable Energy Credits

SREC’s are earned for grid-tied systems.  Think of it this way: when your solar system is shared with the utility with a grid-tie, it can be seen as a sort of customer “stock” ownership.  The amount of your ownership is determined by your system capacity and the SREC’s it produces are its dividends.  When you sell off your SREC’s, that is your earnings.  As of 2024 in Pennsylvania, the going rate of an SREC is ~$30.  One kilowatt of solar modules produces approximately 1.3 SREC’s per year.

5)  Tax credit

Most systems are eligible for a 30% I.R.S. tax deduction on the installed price.  Businesses may take advantage of either the Investment or Performance Tax Credit and possibly an accelerated depreciation for the balance.  Landlords may be able to benefit, too.

6)  Equity increase

Historically, a roughly $15,000 increase in equity can be enjoyed for every $1,000 per year in energy savings.

7)  Increasing payback

Since the 1920’s, the year-over-year increase in utility rates is ~3.8%.  Each year your system produces energy, savings increase on a compound basis, thus riding the wave of inflation instead of being drowned by it.

Fatter wallets all-around

Most non-renewable centralized energy production is heavily subsidized.  Displacement through renewable energy production can ease the pain of income tax dollars otherwise needed to pick up that tab.