The Economic Benefits of Solar Shingles
Roofing, like any major home project, deserves plenty of research before beginning. With solar energy becoming more popular, you may be questioning whether or not solar shingles are right for you. Roofing can be expensive, but solar shingles give back in several ways. If you’re building a pro/con list, here are a few details you might want to consider for solar shingles.
With the sun providing a significant portion of power to your home each month, your energy bill will decrease. On average, energy bills drop by half. Also, Xcel Energy will credit you for any excess energy generated through a process called net metering. With battery storage, you can rely on energy stored to avoid increased time of use charges, bringing those monthly prices down even further.
Additionally, there are some state and federal incentives for going solar. Currently, the Solar Incentive Tax Credit (ITC) allows a 30% deduction of solar installation cost. (The ITC is currently scheduled to drop to 26% in 2020, so installation sooner rather than later may be in your best interest.) Here in Minnesota, we have a sales tax exemption for solar installation which amounts to a decent chunk saved with our 6.875% state sales tax.
Home value has been shown to improve with solar power as well. In a 2015 study from Berkeley Labs, they found a consistent increase in home value across the eight states they looked at. The average market premium they found was $4 per watt or an additional $15,000 for the average 3.6kW system. Of course, a larger system could increase home value by even more. For instance, barns can hold a system from 10kW to 15kW. Solar arrays can pay for barn refurbishments and roofs. There are two programs: Property Assessed Clean Energy (PACE) and Rural Energy for America Program (REAP) that can assist with upfront financing concerns.
Finally, if we broaden our lens to Minnesota as a whole, solar shingle installation benefits the state in other ways. There are jobs that accompany the blooming field of solar technology installation in the state. At Litty Solar, we can attest to that. But increasing energy production through solar energy means Minnesota can rely less on out of state resources. Keeping this money in Minnesota helps the state’s economy and all of us as a result.
Of course, major home projects always come with plenty of variables that should be considered. There’s new energy in solar technology this year, though. Litty Solar has introduced solar shingle installation this year and is excited to bring their expertise to your home. Contact us at email@example.com for more information.