Things You Should Know Before Investing in Solar Energy

August 7, 2009 | 417 views
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There is no doubt that there are a lot of benefits in using solar energy. Aside from protecting the environment, you get to save a great deal of money. But before you switch to solar energy, here are a few things you should consider.

First, is your roof right for solar power? Most solar power systems can be installed as long as the roof is flat and made of material such as bitumen, composite shingle, cement tile, metal or tar and gravel. If this is how your roof is positioned, then there shouldn’t be any problems.

The solar panels will be installed parallel to the roof surface. If you are concerned that the weight could be too heavy for your roof, don’t be since this is very light and quite rare that you have to do some structural work before installing the system.

When you are looking for a contractor, find out how much it will cost to install the system. You should compare these first before you decide in picking the best one. But you should know right now that installing solar powered cells are a bit expensive. There are also no financing programs you can avail of. Your best bet if you don’t have enough money is to apply for a home equity loan.

If you are planning to install this in a commercial establishment, the various loans you can avail of include the capital equipment loan, equipment secured loan, property secured loan or the SAFE-BIDCO energy efficiency loan.

Non-profit organizations may also avail of special loans for solar energy and the best one is through third party financing. In this case, the non-profit organization and the contractor will purchase the system and make use of the tax credits. The third party will then pass on the charges for the produced power to the non-profit and after the system has depreciated, this is sold to the non-profit at a discount.

The end result is that you pay for less than what you are currently paying for because it is maintenance free.

In fact, people are encouraged to borrow money to pay for solar energy. This is because you borrow money at a fixed rate and in return recouped your investment of about 7-11% annually as the utility rates increase so you pay less for it every month. This makes investing in solar energy very similar to other investments such as bonds, property and stock.

Will installing a solar system have any effect on your property? The answer is yes. In fact, it will increase the resale value of your property without having to pay much more in terms of property taxes. If you have a lot of space to spare, you may even be able to zero out your electric bill as long as the sun comes out so you can convert sunlight into electricity.

Aside from increasing the properly value, you will also be able to avail of tax credits from the government.

Solar energy can power your home in the same way you get electricity from the grid. You won’t be able to use it when there is a power outage or when the sun is shining but fortunately, this doesn’t happen daily so it is still an alternative form of energy worth considering.