Ensuring a smooth transition into retirement involves exploring every option available. However, there’s a very simple and direct way to invest, one that’s often overlooked: solar panels.
Many homeowners don’t realize that installing solar panels can be one of the most beneficial retirement investments available. By viewing your home solar panel system as an investment opportunity, homeowners are able to reduce – or even eliminate – their electricity bills.
Therefore, they’re able to free up thousands each and every year.
To ensure stability, retirees and those planning to retire tend to invest in low-risk options. If those options have high-returns: even better! Solar panels naturally fit these criteria as they provide consistent and increasing returns which are similar to the high returns that can be associated with traditional investments like stocks and bonds – but without the unpredictable nature of those markets.
Here’s a few financial benefits you’ll find from going solar:
- Increased Property Value
Solar increases the value of your property. By installing a solar power system you’re investing in your property. Various studies have shown that buyers are willing to pay more for homes that utilize solar panels.
- Large Bill Savings
A bit obvious – but noteworthy – example. Solar greatly reduces, or even eliminates your electricity bill. Your solar power system can supply up to 100% of your electricity needs which can almost eliminate your bill and free up more money to save, spend and invest.
- Hedge Against Future Price Surges
Solar allows you to hedge against any future surges in price. Electricity rates go up each year. In 2015 alone, the prices increased anywhere from 3% to 9%. If you generate your own power, rather than purchasing it from a utility, you’re able to protect yourself from rate increases for the lifetime of your solar power system (which is generally 20-30 years).
- Your Panels Could Even Generate Income
There’s also a chance your solar panels can generate income. If you live in a state that has a market for solar renewable energy certificates (SRECS), there’s a possibility you can earn extra income by selling them. Also – some utilities offer production-based incentives that pay you for the electricity your panels create.
- Your Benefits Aren’t Taxable
The benefits that you gain from your solar investments aren’t taxable. Unlike the returns you see from more traditional investments, your returns from solar come in the form of savings, rather than income (unless you’re using SRECs). This means they are not subject to taxation.
These are just a few ways you can utilize solar energy to gain savings that can get you closer towards retirement – and enjoy a sustainable and comfortable future. Learn more about how PowerScout can assist your solar journey by visiting our How It Works section.
Also published on Medium.