Here is the Effect of Solar Power on Your Finances!
Wednesday, February 28, 2018, 6:00 PM | Leave Comment
Solar power provides us with an alternative source of electricity. Harnessed from sunlight, solar energy can be used to run appliances and electronics. It can even be stored.
Solar power can also be used concurrently with grid electricity in your home. Not only does this provide an alternative power source in case grid electricity goes off, it also helps to save money on electricity bills.
Adopting a solar power system also helps to save money in other ways. Discover more about this below.
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Types of savings facilitated by solar power
There are various types of savings which are brought about after adopting solar power in your home or commercial establishment. They include:
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Investment Tax Credit (ITC)
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Lower electricity bills
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Solar rebates
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Feed-In Tariffs
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Investment Tax Credit (ITC)
Provided by the government, this is a solar power saving that reduces the amount of money for which you are liable to pay taxes for. It is applicable for both commercial and residential solar power installations.
The Investment Tax Credit (ITC) allows you to reduce the amount of taxable money on the installation of a solar panel system by 30%. As such, if you spent $10,000 on installing a solar power system in your home or your business premises, you can reduce the taxable amount by $3,000. This saves money when you are filing annual taxes.
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Lower electricity bills
Solar panels can be used alongside grid electricity to provide power in your home. In this case, they supplement the electricity which you receive from your utility company. Doing so reduces the amount which you use from this traditional source of electrical power. As a result, the bills received at the end of the month read lower amounts.
You can Calculate your solar savings using online calculators to discover how much your solar panel system is helping in saving money.
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Solar rebates
In a bid to encourage people to adopt using solar energy in their homes, governments and states provide rebates. This are arrangements where you get some money back for installing a solar panel system. In this savings instrument, you are required to fill in a form after you install the panels. This form is mailed to your state or other administrative office. After that, you get money sent back to you. This cash represents part of the Return On Investment (ROI) on the solar panel system.
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Feed-In Tariffs
This is another saving that emerges after installing a solar panel system in your home or office. It is where you sell excess electrical power to the utility company that serves your area with electricity. The excess power can be sold for credits or cash.
If you sell it for credits, your grid electricity bill is reduced accordingly. As such, you can end up receiving a $0 or negative electricity bill. If sold for cash, you can receive money for the electricity which you provide to the utility company.
Conclusion
There are various savings that you can get after installing a solar panel system. They are described above. Some of them are provided as incentives while others are effects of having an alternative source of electrical energy.
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