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Are Solar Panels a Good Investment?

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Q: I plan to move in the next 5 years and was considering installing solar panels on the roof of my home in Nassau County, NY. Several realtors advised against installing panels as it would adversely affect future resale value. What is your advice on this?

A: Solar panels are a valuable investment for homeowners, with benefits beyond resale value. However, not all homes can enjoy these benefits, and some research should be done to determine if the substantial initial cost is worth it. You can start thinking about value.

It is expected to cost between $15,000 and $25,000 to purchase and install a solar system on your roof, according to the company. Sustainable Energy CenterThere are tax incentives to offset the considerable initial costs.of Inflation control law Includes a tax credit covering 30% of the cost of purchasing and installing a solar power system. This credit does not apply to leased systems. Consider State Incentivestoo, like New Yorkprovides a 25% tax credit of up to $5,000 on purchased or leased systems.

You should also consider how much solar panels can reduce your energy costs. Make sure you can sell the surplus electricity you produce to the grid. Next, find out how much money you spend on electricity throughout the year. The calculation depends on: where you live, the size of your home and the number of people living in it.the expert is evaluate your roof and weight factors such as your home, the direction it faces, the age of the roof, and tree cover.

“What you’re trying to determine is how long will it take to justify that upfront cost,” said Kimberly Palmer, a personal finance expert at NerdWallet. He added that the panel has a payback period of six to nine years.

Solar panels don’t add much value to your home, but they don’t hurt either. Homeowners who sell their homes within five years of installing the system “return nearly 100 percent of their investment,” said Ben Hohen, a scientist at Lawrence Berkeley National Laboratory in California. I’m here. solar system. He added that buyers are willing to pay a premium for homes with new solar panels roughly equal to their current market value, although homeowners won’t be able to reap the benefits of his system when leasing.

So if solar panels become significantly cheaper by the time you list your home, you may not be able to split the purchase and installation costs 50/50. However, you will enjoy years of cheaper energy costs that may offset that.

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