10 Solar Panel Financial Benefits

Tim Hamlin
Written by
Last update:


Solar power is the conversion of sunlight into renewable energy and in this process the sun can be used as a source of energy. The solar panels can convert this sunlight into electricity. That power then flows into your home.

Significant financial benefits are available when installing solar panels in your home. As a homeowner, the main financial benefit you will notice is the reduced cost of utility bills. This is the monetary benefit that most homeowners are interested in when considering solar energy.

Even though the financial benefits are the most noticeable, there are other benefits of solar energy which in turn should make you take a common sense approach to your power needs.

$$ Saving on Electricity Costs – As mentioned earlier, installing solar panels will ensure significant savings on power bills. You will also be able to save on other costs like replacing bulbs for your home.

$$ Protection of Environment – Many experts have been warning of the harmful effects that fossil fuel had on the environment for some time now. With the help of solar energy we will be able to protect our environment as the energy will come from a source that is not harmful.

$$ Economic Benefit – Turning to solar energy means that you will play a role in the increasing demand of this green and renewable source of energy that is making significant impacts on reducing the depletion of fossil fuel reserves and eventually eliminating the chance of future gas and oil shortages.

Below are some of the benefits of switching to solar electricity at commercial and residential levels:

Some states and utility companies offer rebate incentives when you install an inverter. The incentive package often contains a rebate on the inverter and wiring costs, as well as a rebate on the feed-in-tariff for the amount of electricity fed into the grid.

Federal Tax Credits

A 30% tax credit is currently available in the US for residential and commercial installations. It can be combined with a feed-in-tariff for even larger savings.

Limited Federal Funding

Similar to tax credits, you can also apply for limited federal funding for residential solar and battery storage projects.

Certification and Leasing Programs

There are accredited certification programs that offer professional training courses for installing and maintaining systems. In addition, there are leasing and purchase options from many financing companies that provide project development and maintenance support tools. These allow you to create systems without having all the investment upfront.

Feed-in-Tariff Credits

Feed-in-tariffs provide payment for any excess energy generated that is fed into the grid. This pricing is guaranteed for 20 years in some areas of North America.

State Rebates

Many states offer rebates to offset the cost of residential and commercial grid tied solar projects.

Electricity Savings:

Even though there will be upfront costs to install a solar energy system, the amount of money you will save on electricity will soon make up for that initial cost. Unlike the electrical company, you only pay for the electricity that you use. Once you have covered the initial expense of a solar panel system, you will see a steady savings every year. You will receive the full financial benefits if you install your solar panel system yourself. If you hire a professional to do the work for you, then you probably will not receive the full benefits, as the company will cut into their profits.

Increased Home Value:

When you install solar panels on your home, you’re improving your property and a lot of times can get a return on the money you’ve invested in the panels by way of resell value and/or financing.

Tax Benefits: Install solar panels in order to take advantage of the federal tax credit. You don’t have to pay the federal government cash, but you can claim the subsidy as a tax credit.

Self-Sufficiency: Having solar panels in place means that you’ll be more independent from utility companies. You won’t need them as much, and you don’t have to worry about how much electricity you’re using.

Easy Repairs: Solar panels are virtually maintenance-free once installed, meaning you can rely on them to keep up with your power needs without you ever having to think about them.

New Opportunities: Having solar panels means that you’ll have enough power on-hand to potentially start your own renewable power business.

Clean Air: Solar panels are a clean source of energy, and you won’t be contributing to the air pollution that has been taking over the Earth.


One of the most attractive benefits to adopting solar panels is that there are tax incentives and grants available. The federal government offers a 30% tax rebate for solar panels. Any cost of your solar panels qualifying as a tax deduction. This will be more than enough to pay for the cost of hiring a professional solar company to install the panels.

Solar Works Everywhere:

With a little research, you will find that solar panels work in most locations.

The solar potential for most states in the US is excellent with Florida and Arizona having the best potential.

The sun shines just as much in Seattle as it does in Arizona. Incredible amounts of solar energy from the sun is available all over the USA.

The energy savings from solar panels can help reduce or eliminate the need to purchase commercial power while also making money from selling the power that your solar panels generate. The decision to invest in solar panels is a financial decision, not just an environment one.


  • Solar energy is one of the most environmentally friendly and sustainable energy resources.
  • No Greenhouse Gases. While solar energy has a negligible impact on the environment, solar power generates no greenhouse gas emissions or other types of pollution.
  • Decreased use of fossil fuels. By reducing or eliminating your need for fossil fuels, you are cutting down on carbon emissions that can potentially harm the environment.
  • Decrease dependence on foreign oil. One of the biggest reasons people choose to switch to solar power is to decrease the amount of oil you need to import.
  • Free from government regulation. While solar energy has many desirable environmental attributes, the government can't impose new taxes and surcharges on solar customers.

Say goodbye to more Time-of-Use (TOU) rates:

TOU rates are based on when during the day you use electricity. In many states, you may face TOU rates that charge you a significantly higher price per kilowatt-hour (kWh) to use electricity during certain times of the day. Now that you have solar panels, you can use as much electricity as you want, whenever you want.

Net Energy Metering (NEM) can work for you:

Net Energy Metering is simply a way to provide for greener energy choices and even an opportunity for a little “green” to grow in your pocket or bank account. NEM works by adding up how much energy your system produces over a period of time and subtracting the amount of energy you use over the same period of time. The difference is called the “net energy,” and you can use it to power more of your own devices like energy-saving appliances or gadgets, or even to sell it back to your local power company. Either way, NEM is a net win for the planet and your pocketbook .

{1}. Save money with your own clean, renewable energy.
{2}. Your power company pays you for energy you supply; it can even be credited to your account periodically, the energy you generate from your own local clean sources is worth even more.
{3}. Your utility or energy company may require you to sign a contract for Net Metering, but there are no up-front costs to get you started.
{4}. There will be additional lines added to your electricity bill to calculate how much energy is used and how much is sold back to the company.
{5}. Your electricity company purchases the energy at a wholesale rate; in most cases they may even give you a substantial credit every month.

Federal and state incentives are available for going solar:

Many utility companies offer additional rebate bonuses for their customers who install their own solar panel systems. Often these incentives are in the form of credits on your monthly bills.

If you live in a state or area that has tax incentives for installing solar panels, you can earn a nice tax credit at the end of the year. However, it may take several years to recoup these costs in lower electricity bills. We discuss tax incentives further below.

If you don’t have any money to spend up front, you can pay off the purchase of solar panels through a loan. The good news is that, in most cases, solar panels pay for themselves over time in reduced energy costs.

These financial incentives for going solar are just a sampling. This is an evolving area, so always check for new and more complete information about incentives and possible rebates that apply to you.

Renewable energy helps others in times of need:

When disaster strikes, like the recent earthquakes in Nepal or tornadoes in Oklahoma, it’s critical for everyone to help provide assistance to those in need. Solar power can help by providing a reliable power source to damaged areas when others are unable to.

Offering long-term cost-efficiencies: Solar power is a renewable energy source that helps to lower your carbon footprint which can help you to save money. The fuel for solar panels don’t need maintenance for a long period of time. It is recommended that you check your photovoltaic panels for cleanliness once a year, with a soft cloth. This will ensure that they stay functional for a long time.

Creating green jobs: Solar power helps to create a lot of new jobs throughout the country that are all related to solar power in some way. There are over 300,000 solar jobs all around in the country, bringing a lot of new jobs and job variety to the country.

Helping the environment: The solar panels are eco-friendly and will last for many years. They use solar power to heat water and they help the environment by reducing the need for fossil fuels, which are needed for other types of energies.

Maximizing energy potential: A recent study found private solar power systems generate more than 85% of their total potential electricity for the year.

Solar energy means healthier air:

Solar panels can actually help clean the air just a little bit and reduce the amount of CO2 in the air. How so?Well, they are made using silicon, which is essentially sand.

This means that they create lots of sand and silicon emissions when they are manufactured.

However, to specifically counterbalance this, a new type of thin-film solar panel called CdTe (cadmium telluride) is manufactured without a lot of silicon.

Cadmium is a toxic element. This means that less land is used to make the solar cells, which means less land is touched by the toxic element, cadmium.

This also means that there is less toxic waste.

Solar creates jobs and supports families:

The Solar Foundation (TSF) has recently released their findings on the solar workforce. The report found that the solar industry employed about 174,000 solar workers in 2016, a 25% increase from 2015. This means there were more workers in the solar industry than there were in oil and gas extraction during this same period. The report also found that there were nearly 12,000 solar companies operating across the US.

Every state has at least one solar company, in fact 426 companies were found in Nevada alone. The solar industry is providing access to work with a living wage to those who have been locked out of employment in traditional industries.

Employment in the solar industry includes positions that can be implemented across sectors. Solar jobs are more likely to be posted in installer, sales or project development, while blue-collar workers are also hired for production line assembly and manufacturing of the panels.

The misconception is that solar jobs are just for environmental studies majors; however, TSF's reports finds that employees typically have a broad range of skills and educational backgrounds, showing that many different types of degrees are viable for being employed as solar employees.

In California we are lucky to have a number of solar companies as well as unique legislative policies that support these companies. The Golden State continues to bring opportunity and careers to many job seekers.

The price of sunlight is zero:

The primary plus of solar panels is the fact that sunlight is free, and it will never run out and it doesn’t cost you anything.

You can use it even in the night or when it’s cloudy: Solar panels can store energy when it’s sunny, just like batteries, and you can use it anytime.

No more electric bills: Perhaps the number one financial benefits of solar panels is the elimination of electric bills and related expenses. Even having a small solar panel can help you save significant amount of money.

Solar panels pay for themselves: The average solar panel can take 5-10 years to pay back and then starts to generate income for you.

No environmental damage: If you are looking to be “green” and help the environment and preserve the earth, solar panels are the way to go since they do not pollute the atmosphere.

Solar panels don’t wear out: You will never have to replace a solar panel. They are made to last for decades.

Lock in long-term low rates: If you have large systems, you can sign up with a long-term rate plan that will lock you in the price of electricity for 20 years, which helps to mitigate risks for your budget.

Solar reduces dangerous greenhouse gases from cars:

The electric vehicles are powered by the Sun. Greenhouse gases are one of the main causes of global warming. In comparison, if electric vehicles are not available, then the combustion vehicles will result in dangerous carbon dioxide emissions.

Scientists have evidence that the carbon dioxide emissions are responsible for global warming. To reduce these harmful emissions, scientists are using the renewable resources. As you know the Sun is a renewable resource and it doesn’t emit harmful gases.

If Solar energy is used to power electric vehicles, then they will help to reduce the carbon dioxide emissions.

Reduce Your Carbon Footprint:

We've all noticed the rise in pollution on the planet and the devastating effects it has. From the massive pieces of trash in the Pacific Gyre that cover an area bigger than the states of Maine, New Hampshire and New York combined, to the giant panda that has developed an insatiable appetite for its natural habitat, the bamboo forests. We've seen the disaster in New Orleans. We've turned on the news and seen the droughts, the financial crisis, and the hurricanes. We've noticed what everyone agrees is happening, and we've said enough is enough!

The solar energy from your solar panels can save you money on your monthly power bill, but the real benefit is the fact that the energy your panels produce is a clean energy source. One of the first ways we can reduce the aforementioned effects we see every day is to cut down on the pollutants produced by the current power plants.

By using solar energy you're helping to save the planet.

Provides strength to the local economy:

Solar indicates that you're a business man who believes in social responsibility. This kind of business building does not run out of money quickly since many times it is done to present by local businesses.


These are benefits, incentives, or credits available to you because you produce clean energy, and they will be passed on to the new owner when you sell your solar panels (*or if you lease them).

· SRECS: Solar Renewable Energy Certificates are relatively new and can be worth serious money to the new owner of your solar panels. The value of SRECs vary by state. A good rule of thumb is to claim the maximum for your SRECs based on state guidelines.

· AECs: Alternate Energy Credits or Alternate Energy Certificates are available in some states and are tax-free. These benefits depend on your yearly output of solar electricity.

· NET GAINS: If your home has increased value because it has solar panels, you may also qualify for a federal tax credit. This credit is claimed by you (or the buyer) when you sell your home. This is also a serious selling point for the new buyer.

· TAX CREDITS: You'll get a tax credit, a dollar-for-dollar reduction, for each kilowatt of solar panels you put in your home. The credit lowers your tax bill and you may also get checks from the government.

· STATE TAX CREDIT: Some states have their own tax credits for installing solar panels. It is often based on a percentage of the installation cost, for example, three percent.