Why Solar Power is a Good Retirement Strategy
Getting the right retirement strategy for you requires proper research before you can really settle on anything permanently. Unfortunately, most homeowners do not get to realize the many benefits that come from the solar panel system. It could be the best and smartest idea in securing the best financial future as your retirement investment. By the simple realization of how solar panel is cost-efficient, most homeowners could end up saving about $1000 each year by eliminating their electricity bills.
Here are some of the benefits of why you should consider solar installation as part of your retirement plan.
1. Solar Greatly Reduces Your Electricity Bills
As you get on retirement, chances are the monthly income you got will significantly decrease. With this in mind, you need to devise methods of how you can reduce the costs while still having the benefits and value you had before. Your solar energy system will do this for you by still generating the 100% electricity you always had but at a lower cost. Hence the extra money you could have otherwise spent on electricity can be used on something else.
2. Solar can Hedge Against Future Price Increases
As for electricity, the future is uncertain, and electricity prices might go hiking up as time goes by. But with solar, the sun is unlimited, and there is no way the solar will ask you to increase your monthly contributions. By installing solar panels, you can protect yourself from the hassle of increased electricity rates for the lifetime of your solar panels which is approximately 20-30 years.
3. Solar Increases the Value of Your Home
Multiple studies have come up with evidence that most homebuyers are ready to spend more on houses with solar power. If you are thinking to resell your home and have it revalued, installing solar panels will be useful to ensure that it gives you more money as part of your retirement plan.
4. Your Solar Panel System May Generate More Income
While getting to retirement, sources of funds might be limited, and you might need some more income to support yourself. A solar panel can give you this advantage because if you live in a state where there is a market for solar renewable energy certificates, you may be in a position to sell them. This will ensure that you are equipped with some extra cash and some utilities might even go ahead and pay you for the electricity your panel generates.
5. Benefits of Solar Investments Aren't Taxable
For all the proceeds that you get from your solar panels are not subject to be taxed unlike the traditional investment vehicles. The financial returns that you will get in the form of the monthly savings will not be taxed, and hence all the money will be yours.
Choosing the Right Financing for Your Solar Retirement Strategy
Regardless of the financial option that you will choose, the solar panels will still generate value and save you money. However, some plans are more beneficial and will give more returns than others. You can finance the system in of these two ways.
- Buying the System Outright
Purchasing the solar panels outright is the best way to invest in it because you will not have to repay the debt off and with some interest on top.
- Buy the System with Solar Loan
If you can't afford the solar panel on cash instantly, you might consider getting the solar panel on a solar loan. However, you need to find some background information about the solar loan to avoid being scammed and losing your money.
For more information about solar panels and their numerous benefits, feel free to talk to us, and we will be more than willing to assist.