Financially literate families plan for many years, usually decades, in order to be prepared for when retirement comes around. Retirement means that your regular salary isn’t coming in anymore; Monthly social security payments along with whatever IRA, 401(k), or other retirement income you have typically won’t add up to your previous income.
That’s why when heading into retirement families need a two-pronged strategy – decreasing monthly expenses on the one hand, and finding alternative sources of income on the other. Believe it or not, having your home run on solar-powered electricity can be a part of both prongs of that strategy. Here are five ways that going solar can help decrease monthly expenses as well as bring in a little extra income:
Owning Solar Panels Can Slash Your Monthly Electricity Bills
Once you’ve completed American Solar’s flat-rate payment program, you will own your solar panels outright and will no longer have to make monthly payments for solar energy. Since your solar energy system can generate up to 100 percent of your electricity needs, your monthly energy bill can be close to $0 per month which will free up more money for savings or investment while you will still be connected to your local grid for backup purposes.
Protects Against Future Price Increases
Homes that draw their energy from the grid can expect electricity rates to go up every year. Over the past 10 years, energy prices have gone up by about 20 percent! With flat-rate electricity, you are locking in your monthly rate for 25-30 years, which means that all the money that you don’t spend on price increases can be set aside and invested as part of your retirement package.
Enjoy Tax Benefits
Since most federal and state incentives that you receive for switching to solar are viewed as savings rather than income, the extra cash that you end up with won’t be subject to taxes. Over time, the tax savings can amount to a substantial increase in the amount of free cash that you have to contribute to your IRA or 401(k).
Increases the Value of Your Home
Plenty of retirees look to sell their homes and downsize into a more manageable living space once the nest is empty. According to Zillow, homes with solar panels sell for about 4% more on average than homes without solar panels. That’s a significant different for mature couples who find themselves on a tighter budget. By planning ahead, you can prepare your home to get the most attractive return on investment when you’re ready to sell it.
Generate Income by Selling Electricity to the Grid
Certain states have arrangements in place that actually allow you to sell surplus energy generated by your home solar system back to the local grid! Especially retirees whose children have moved out, and who are using less energy to fuel their daily needs, may discover that their home solar energy system is producing more electricity than they are using! When that happens, it can become a source passive income which can help make up the difference between your previous salary and your current retirement income.
Take action years before you plan to retire to get the most out of your home solar energy system in your golden years. To get your own personalized quote, contact us at American Solar!