If you’re thinking about getting solar panels for your home you may be wondering if it’s worth the expense and does it make a good investment? Solar enables you to decrease or even eliminate your reliance on electricity companies, cutting your monthly power bill and potentially even earning you money if you’re exporting unused power to the grid. That’s aside from the environmental savings in reducing your carbon footprint and treading more lightly on our planet. Powering your home with solar is win-win either way you look at it.
How long does solar take to pay off?
With the cost of solar having decreased dramatically in the past 20 years, it is more affordable than ever and payback on a solar system can be as quick as 5 years, depending on your energy demands, usage profile, and current power company charges.
Your solar system generates free power for your home, is a valuable asset on your roof, and increases the value of your home. When it’s paid off, you keep getting free power so it’s all savings from there.
What can I save on average with solar?
If you decide to put the upfront cost of the system onto your mortgage, you save money from day one, as long as your power bill is over $180 per month on average.
If we use an 8kWh system with a battery as an example, it could reduce your bill by 80%. With a $300 a week average power bill, the mortgage repayment would be around $170 per month. This means each month you have gained $130 of money you otherwise would have spent.
Whichever way you decide to pay for your system, the savings are real and immediate.
What are the other benefits of solar power?
The return on your investment from solar isn’t just how much money you can save as it has other benefits that make it a smart choice for you and your family. Research from overseas has shown that solar power systems can add value to your home, with an average house price increase greater than the cost of your solar system. With solar power becoming more popular it will be something buyers will prefer to have and that will only increase in value over time.
Electricity prices in Aotearoa have continued to rise over the years and you will lock in your savings for years to come by getting solar and decreasing your reliance on the grid. If your system allows it, you’ll also have solar through power blackouts which means you can keep your home running even when the power isn’t.
There has never been a smarter way to future-proof your home, solar is one of the best investments you can make for you and your family.
The above has been all about owning the solar yourself, how about solar lease agreement options?
While solar leasing can seem like an attractive option, it’s important to understand the terms of the agreement and the long-term financial implications that often do not lean in the customers favour and often leaves them out of pocket. It is for this reason Lightforce only offers outright ownership of the home systems we sell. We recommend you seek outside advice and do thorough research before signing such an agreement.
Solar leasing or renting agreements can be bad for a few reasons. First, they often involve long-term contracts (In NZ, this is often 20 years) that lock customers into a fixed payment plan, which can become expensive over time for a variety of reasons.
Secondly, in most cases, at the end of the contract you still do not own the solar system, and if you wish to sell your home you will need to transfer the agreement to the new home owners, or pay off the balance of your 20 year, monthly contract.