The last couple of months have been rough. Each day has brought ups, downs, and lots of uncertainty.
The stock market is on a roller coaster ride. Budgets are tightening. People are looking for ways to save money and protect what Dave Ramsey refers to as our Four Walls (food, utilities, shelter, and transportation).
One thing that everyone could use more of during times like these is financial stability. How different would this time look for you if you had one tool that provided dependable financial returns during all economic cycles?
Living debt-free and within your income is the first step to providing stability and protection during times like these. The next step is to invest in tools that provide safe and consistent returns, and solar energy is one of those tools.
Yes, the upfront cost of solar can be intimidating, but the savings and stability solar energy provides can make a big difference. Read on to learn how solar can help provide stability during uncertain times.
3 Ways Solar Provides Financial Stability To Help You Excel
1. Solar reduces an expense
The dreaded (maybe never-ending) electric bill is a big portion of each household’s monthly expenses. Yes, in some cases, reduced energy consumption can decrease this expense. But we all depend on our refrigerators, heat pumps, lights, and other appliances to keep our homes comfortable. Short of turning these appliances off, solar is the best alternative to control this expense.
Most mid-Atlantic households are spending an average of $150 each month for electricity. With solar, that bill can be eliminated or drastically reduced. Adding an extra $150 a month or $1,800 a year in your bank account will go a long way.
Our goal for every residential solar installation is to cover 100% of the annual energy usage. This means you will pay next to nothing for the electricity you use. Imagine what you could spend your money on if you didn’t have an electric bill.
2. Solar provides passive income
Each sunrise brings a new day of savings AND income generation for solar owners. A lot of people think you should install solar to sell energy back to the utility company, but in reality, the passive income comes from what’s called Solar Renewable Energy Credits or SRECs.
SRECs were created as a means for utility companies to fulfill the requirement to supplement a portion of their renewable energy production with solar energy.
Solar owners receive 1 SREC for every 1,000 kilowatt hours (kWh) produced by their system. The certificates are then sold to the utility companies, creating a passive income source for the owner. One thing to note is only five states and Washington D.C. have SREC markets.
One thing to note is SRECs are sold similar to how a stock is sold on the Stock Market. Prices do fluctuate with demand and policy changes but don’t worry about losing money. There is no risk of losing money like there is when investing in the Stock Market.
In most cases, no effort is needed by the system’s owner because they can register with an SREC broker or partner with an installation company, like Paradise Energy, that will manage the SRECs for them. All that’s required of the owner is retrieving the check from their mailbox.
At the time of this blog post, SREC prices in many states remain favorable and signs point to that continuing. For an idea of what you could earn with SRECs, let’s use a 10 kW solar system (the size needed to cover roughly a $150 monthly electric bill) as an example. This system would generate around 12 SRECs annually. In states where prices are high, like New Jersey, that could put an extra $2,700 in your pocket. Most other states will pay between $300 and $1,000 for that amount.
Check out our Guide to SRECs to learn more.
3. Solar returns are guaranteed
Many of America’s biggest brands are running on solar energy. Even the WhiteHouse and the Pentagon both utilize solar. This is because solar energy is reliable. Just like you can count on the sun rising each morning, solar can be counted on to be a reliable energy source.
Since solar is a reliable energy source, it can also be counted on to generate a consistent financial return today and for decades to come. Most reliable solar installers will be able to provide accurate production estimates for the systems they install. This means you can create your monthly budget without worrying about a surprise electric bill - unless of course, you increase your energy consumption.
Equipment warranties provide an additional layer of stability. Many of the best solar panels come with 25-30 year linear performance warranties that make sure efficiency levels stay above a set percentage. This means you can be confident the panels will continue to produce as they should or they will be replaced paid for by the manufacture.
In addition to the equipment warranties, Paradise Energy provides a 10-year performance guarantee. Meaning your system is guaranteed to produce the amount of energy we list on our project proposals. This provides a significant layer of security because we will send a check for the difference if the system doesn’t produce as it should.
In summary, solar energy will reduce a monthly expense and provide a passive income that will continue to make a difference for your budget even during uncertain times. The best part is after installation, you don’t need to do anything. Solar is a set-and-forget solution.
Yes, installing solar energy systems is what we do at Paradise Energy. But bigger than that, our company’s mission is to help people be good stewards of God’s abundant resources. We are consultants first and we’re quick to tell someone NOT to invest in solar if the numbers don’t make good financial sense.
Are you wondering if solar could provide you with financial stability? You can sit down with one of our solar consultants, download our free solar buying guide, or browse through our many educational blog posts.