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Ready to explore the benefits of solar as a retirement investment? Take the first step by discovering how much solar can enhance your retirement savings. Utilize the SolarWiki Calculator to gain valuable insights into the relative value of various solar financing options in your area. Start maximizing your retirement potential with solar today!
Retirement planning requires considering various investment options to secure your financial future. Interestingly, numerous homeowners fail to recognize the potential of installing a solar panel system as a smart retirement investment. By viewing solar panels as an opportunity for investment, homeowners can enjoy significant returns, allowing them to reduce or eliminate their electricity bills and save over $1,000 every year. Additionally, with the increasing availability of $0-down solar loans, homeowners who don’t have upfront funds can still take advantage of solar power as a strong retirement investment strategy.
Investing in Solar for Retirement: A Secure Financial Move
For retirees and those planning their retirement, ensuring financial stability often involves seeking lower-risk investment options. Solar panels emerge as a natural fit: they offer steady, increasing returns akin to traditional investments like stocks and bonds, yet without the unpredictable fluctuations of those markets.
Going Solar Yields Numerous Significant Financial Advantages
Reduce or eliminate electricity costs
When you switch to solar power, you can cover all or most of your electricity usage, leading to lower monthly bills and more money in your pocket for other needs or investments. Even if you don’t owe anything, you’ll still receive a bill just for being connected to the grid.
Protection against rising rates
With utility rates increasing by about 20 percent in the last ten years, having a solar energy system means you won’t be affected by these unpredictable hikes. You’ll be shielded from rising costs for the entire lifespan of your solar panels, typically 25 to 30 years.
Increase property value
Studies have shown that homes with solar panels are more attractive to buyers, who are often willing to pay more for a property that comes with a solar energy system already in place.
Opportunity for extra income
In states where solar renewable energy certificates (SRECs) are in demand, homeowners can make additional money by selling them. Some utility companies also offer incentives for the electricity your solar panels produce, providing another source of income.
Tax-free savings
Unlike traditional investments, the financial benefits of going solar come in the form of monthly savings, which are not considered taxable income (except for SRECs). This tax advantage makes solar investments even more appealing.
How to Save Money with Solar Panels for Seniors
Tailoring Solar Financing to Your Retirement Goals
No matter which financing option you choose, your solar energy system will undoubtedly bring you savings. However, it’s important to note that certain methods of financing can yield higher returns than others. Here are three different ways you can finance your system:
Purchase Outright
If you have funds available from a recently matured CD or another investment, using cash to buy your solar energy system is the ideal choice. By doing so, the average homeowner achieves payback in just about 8 to 9 years and retains 100 percent of the financial benefits.
Solar Loan
If paying upfront isn’t feasible for you, don’t worry. Many banks offer $0-down, low-interest solar loans. The best part is that the monthly payments are often lower than your electricity bill, resulting in immediate savings. With a solar loan, homeowners typically retain 40 to 70 percent of the financial benefits, depending on the terms of the loan.
Solar Lease or PPA
Another option to consider is a solar lease or Power Purchase Agreement (PPA). With this choice, you won’t need to make an upfront payment. Instead, you’ll pay a reduced monthly rate to “rent” the solar energy system from a third-party owner. Throughout the lease period, this typically leads to savings of around 10 to 20 percent on your electricity bill. Opting for a lease or PPA can be particularly advantageous if your income is too low to benefit from the federal solar tax credit.
