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There are two major benefits to using residential solar panels. First, you can reduce pollution as you rely less on the burning of fossil fuel. Second, you can get a very good return on investment on your photovoltaic panels — these are always double digit returns, much better than Wall-Street-types investment with only single digit paybacks.

Other than these two benefits, there are more that people seldom heard of. But these can be significant when added together:

1. Government subsidies

Many state governors have realized the importance of using renewable energy. Therefore rebates, tax breaks and subsidies are given to households that use renewable energy to power their homes. The total discount on a system may be more than you imagine…sometimes more than 50%. Therefore do check what you’re eligible for.

2. Electricity Bill Hedging

Fuel is consistently increasing in price due to inflation and diminishing supply. But whatever the cost of fossil fuel may be in the future, there is no need for you to pay an extra cent if your solar power generator can supply all your energy needs. The grand total of your bills will still amount to $0. Isn’t that great?

3. Property Appreciation

Properties installed with solar panels are worth more than those without. This is obvious, since solar power generators are assets that can help the household lower their monthly electricity bills dramatically. Having PV panels in your property will not increase your property tax. Therefore it is a priceless item that can maximize the value of your home.

When we install solar panels on our property, we always look for numbers like cost per watt or payback period.. With the above benefits such as government incentives and rebates factored in, we’ll find these numbers become more attractive. Moreover, there are also many intangible benefits like environmental protection that comes along with your PV “toy”.

Continue Reading:

1. Solar Energy Panels – What You Need To Know Before Purchasing
2. Cost Of Using Residential Solar Panels
3. Homemade Solar Panels – Should You Even Roll Up Your Sleeves To Build One?

Home Valuation Increases When Solar Panels Are Installed

The payback for your solar panel investment doesn’t stop at monthly utility savings. When you have a solar generator on your roof, property valuators will take that into consideration.

The increase in your home valuation depends on the reliability of your solar panel system and its remaining lifespan.

Think of your solar panels and solar heaters as equipment that provides value (in this case savings) to the buyer.

If its (projected) remaining lifespan is longer and the brand gives people confidence in its reliability, buyers will be willing to pay more for this asset.

Suppose you decide to sell your home five years after installing PV panels (or a solar water heater) and your system saves you $50 per month on utility bills.

Prospective buyers for your house are willing to pay more for your home because you can help them save $600 every year on energy bills. On top of that, they don’t have to get a separate loan for the solar installation.

Some valuators feel that by having solar panels on your property, your home’s valuation improves by 125% of the solar installation cost. Thus investing in solar energy generators allows you to list your home at a higher price. You may also get it sold faster. This is especially true when oil price shoots toward the sky.

Between solar water heaters and PV panels, solar heaters will give you a better return on investment and also a shorter payback period.

This is because solar heaters are relatively cheaper, are much more effective and helps to reduce heating costs in significant ways.

Thus if you haven’t installed anything yet, consider this route. Use solar water heater to heat up your swimming pool, hot tub, shower room, living spaces, et cetera…whatever you can think of. There are numerous techniques to get heat flowing where you want it.

After you have experienced the benefits of solar heating, then move on to photovoltaic panels. After all, more than 44% of our utility bill is attributed to heating cost.

With the combination of solar heater and photovoltaic panels, you have a good chance of moving towards self-sufficiency. After the payback period, your utility bills will no longer be a pain, because it’ll be free.

Read Part 2 of this series here:

http://www.diysolarpanelsworld.com/how-to-determine-the-payback-for-your-solar-panel-investment-part-2-of-3

Read Part 1 of this series here:

http://www.diysolarpanelsworld.com/how-to-determine-the-payback-for-your-solar-panel-investment-part-1-of-3

Continue Reading:

1. Why Are Solar Panels The Best Investment For Your Home?
2. 7 Different Ways of Using Solar Energy At Home and In Your Office
3. Survey Your Household Energy Usage Before Installing Solar Panels