Japan to Discuss Investment in Pakistan's Energy Sector

What are the 8 Important Benefits Of Solar Energy? Why Do You Need Solar?

Solar energy is one of the best options in the energy market. This article will explain in detail the 8 important benefits of solar energy.

About a month ago I visited a buddy of mine who I hadn’t met in a while. We talked about several things among them were his high utility bills. I figured I help him out and suggested installing a residential solar energy system which could take care of both his electricity and heating needs. 

I wondered this is something that happens to a lot of homeowners; instead of finding financial benefit and comfort they’re banging their head against the wall by paying high utility bills. So, I decided to do a little research to find out 8 important benefits of the solar energy system. 

Two common reasons why people especially homeowners need solar are, improving the environment and cutting their utility bills.

According to the market insights for the year 2019 provided by Solar Energy Industries Association (SEIA), The installed solar photovoltaics capacity in the U.S  can power 13.1 million American homes and this number is expected to double over the next five years. 

No wonder that among other renewable energies, solar energy is been adopted more quickly. In the U.S alone, there are several state and federal incentives and policies contributing to driving down the cost of solar panels far enough to become more widely consumed.

The internet is stuffed with a lot of information which makes people aware of the fact that solar is efficient, cheap and environment-friendly. Most homeowners are growing more and more conscious of the fact that an upgraded solar energy system on their house would improve their property (real estate) value. 

8 IMPORTANT BENEFITS OF SOLAR ENERGY IN 2019

Whatever your reasons for needing solar, as a home or property owner here are the ten important benefits of solar energy.

1. SOLAR POWER SYSTEMS SAVES MONEY

If you’re a homeowner or a commercial property owner, utility bills take up a huge chunk out of your monthly income or savings. Let’s assume your monthly average electricity bill is somewhere between $70-100. Adding that up to 12 months becomes $ 840-1200 and adding that up (without inflation) to 20 years amounts to $16,800-24,000. So, in 20 years you will be spending $24,000. It seems you have a lot of money to spend. Bravo! 

8 Important Benefits of Solar Energy - Save MoneyAdding a customized solar energy system to your property can drastically reduce or even eliminate your utility bills. According to my research, you can save as least $100 monthly. Calculate that over a year and that corresponds to $1200 annually. Note that an average lifecycle of a solar energy system is 20-25 years. Even if you aren’t 100 percent on solar, you can still save money by lowering your utility bills cost. 

Reducing high monthly expenses sounds logical and makes perfect sense. What if, the utility service in your area is down?  Doesn’t it make sense to be independent financially and commercially?

Do your own math and decide!

2. SOLAR ENERGY SYSTEMS PROVIDES SECURITY AGAINST UNPREDICTABLE UTILITY BILLS

Let me ask you, is the cost of a Toyota Prius the same it was 20 years ago. The answer is NO. Why is that? This is mainly due to inflation. Don’t worry you have no control over the matter, It’s the government who makes the policies and drives the economy.

8 Important Benefits of Solar Energy - BrokeTaking this example, just imagine what would your utility bill be, say 5 years from now? It would definitely be much higher with the current economic trends. Over the last 10 years, residential electricity prices have risen up at an average of 3 percent annually. The utility companies are known for their fluctuating and unreliable prices. 

Keeping this in view, if you invest in a solar energy system now, it would first pay off your utility bills plus it would also keep you secure from unpredictable and additional expense you incur for the next 20 years.

If you’re a homeowner with a fluctuating income stream, going solar also helps you better forecast and manage your expenses.

3. SOLAR PV PANELS REQUIRES LITTLE OR NO MAINTENANCE 

General maintenance of a solar energy system has never been easier. You don’t need to be an expert in rinsing the solar panels with water two or three times a year. It’s a piece of cake.

With more technical matters, you always have covered by a warranty. Warranty is also one of the most important factors when you choose a solar panel. Most solar power manufacturers guarantee their products life ranging between 20 to 25 years.

The only thing you need to be careful about are the warranty clauses of the manufacturer. That helps you determine what’s covered and what isn’t. Choosing a well-known and reputed company will be important for you as they will honour your warranty. Read more about the 11 best solar panel manufacturers in the USA.

4. SOLAR PHOTOVOLTAIC SYSTEMS BOOSTS YOUR PROPERTY VALUE

According to research carried out by Lawrence Berkeley National Laboratory (U.S Department of Energy), homeowners who have installed solar energy systems on their houses can sell their property at a higher price compared to those without one.

8 Important Benefits of Solar Energy - Property Value

Consider yourself buying a house. Wouldn’t you want to buy a property with a solar energy system already installed (plug and play) than a house without one? For the latter, you would be doing all the legwork by doing research and paperwork. 

Seeing the current market trends, buyers are keenly taking more interest in properties with solar installations and as homebuyers become more educated about solar, demand for properties equipped with solar energy systems will continue to rise.

5. SOLAR ENERGY GIVES EXCELLENT RETURN ON INVESTMENT (ROI)

Modern advancements in the solar energy sector have drastically reduced equipment (solar panels, inverters, batteries, etc.) costs. Think of your home solar energy system as an investment which unlike stocks and bonds guarantees returns on a monthly basis. 

Depending on your location, an average homeowner can off their investment in their solar energy system in about six to eight years. In the U.S alone there are some states which provide great incentives to homeowners. In countries like Pakistan, there is no direct sales tax on Solar panels.

8 Important Benefits of Solar Energy - ROIThere are a few factors which will impact your ROI. Depending on these factors, you can calculate your return on investment by dividing your yearly financial benefits by your initial expense on your solar energy system. 

I’ll be writing about this more about this specific topic in detail later on but just remember that a standard ROI on solar energy system more than 20 percent.

6. SOLAR ENERGY ENCOURAGES GOVERNMENT INCENTIVES

The U.S Federal Government offers a 30 percent federal solar tax credit for any residential solar energy system installed. This program has been extended until December 2020.

If you’re an American taxpayer, you qualify for this program and you will get 30 percent of your net cost back. Combining both federal and state rebates you can cut your costs in half.  

As of 2015, the government of Pakistan guarantees, subject to certain conditions, a 16 percent $-indexed return. With cost benefits also given to import of solar energy equipment.

There is also a provision of Net Metering, which works on the principle of selling your solar electricity generation back to the utility company. Any power you generate and don’t use flows back into the gird, and you receive a credit from your utility company for that power.

If you’re on a vacation for a week, your solar energy system will be supplying all your electricity to the grid. That way when you comeback you’ll be at ease that you’ve saved money. 

7. SOLAR IMPROVES ENERGY INDEPENDENCE, CREATES EMPLOYMENT AND BOOSTS LOCAL ECONOMY

Let me start by pointing out two interesting facts about Solar energy:

1. “Our sun emits more energy in one second than the combined consumption of every person who either has lived or is living on earth!”

2. “Less than two hours of sunlight striking our planet can fulfill our electricity needs for an entire year.”

Energy Independence

Our planet captures more than billions of photons (tiny packets of energy) from the sun (natural nuclear reactor) every day. According to a recent study, if a solar energy system were to be installed in an area roughly the size of West Virginia, you could generate sufficient electricity to energize the whole planet. 

In this century our economies are more tightly connected than they ever were before. We depend on others to fulfill your economic requirements. Although to be globally connected is a good thing, the downside here is the fluctuating and unstable market prices.

100 days ago, oil prices were different than they are right now. We all buy oil from countries to satisfy our thermal energy needs. Why is that? Wouldn’t it be better to be energy independent?

Maybe its greed or just plain old politics. When we expand our capacity to generate electricity through solar, we also protect ourselves from those price fluctuations and ensure a sustainable source of energy for the future.

Even Saudi Arabia, one of the world’s largest oil producers, recognizes the economic and political benefits of energy independence and has announced goals to build solar energy power plants, thereby increasing their capacity to 41 gigawatts by 2032.

Boosting Jobs and the Local Economy

The solar energy industry is a national industry that provides high-quality employment opportunities across the country. If you are familiar with the ‘Demand – Supply’ principle. If more people (buyers) go for solar, more people (sellers) will be providing this service. This way more people will work to sustain themselve.

8 Important Benefits of Solar Energy - Local EconomyAccording the National Solar Jobs Census 2018 provided by of the U.S’s Solar Foundation. America now has over 242,343 solar workers. These jobs are providing clean, affordable, renewable energy in all 50 states with California leading the race with 76,838 jobs.

  • Solar Installation Jobs– 155,157
  • Solar Manufacturing Jobs– 33,726
  • Solar Wholesale Trade and Distribution Jobs– 29,243
  • Solar Operations and Maintenance Jobs– 11,164
  • Other Misc Jobs– 13,053

This is good news for the economy and the environment as the solar energy sector is rising and is becoming one of the key source of energy in the U.S and in 2019, renewable energies has overtaken generation from coal-fired power plants. You can read the complete article here at EnergizedPAK

8. SOLAR ENERGY PROTECTS THE ENVIRONMENT

In recent news, U.N’s Sectretary General Mr. Antonio Guterres says climate changes poses a “global risk” and that ‘We’re losing the race’.

Japan to Discuss Investment in Pakistan's Energy Sector - PakistanIn my article ‘Solar Energy Explained’, I have already written on how solar is clean, environment friendly and the one of the best ways to reduce your your carbon footprint. In the world, the United States is placed second after China at 16.2 metric tons of carbon dioxide emissions from fossil fuel person.

According to U.S Green Building Council, buildings in the United States contribute to 39 percent of all carbon emissions.

Over the next 25 years, an average residential solar energy system can save equivalent to 120 tons of greenhouse emissions which is equivalent to planting over almost 2500 trees. 

Be responsible and do your part for a cleaner and brighter future!

Conclusion

Currently, power from solar energy accounts for only a small portion of the total global energy mix but with more and more people investing in solar energy systems; this technology is advancing rapidly.

Although we care about our environment like most sane people, the cost impact of using solar power is also important for us.

For most property owners, making the decision to go solar brings up many questions. I’ve managed to list down the 8 important benefits of solar energy which will help you make that decision.

You need to remember one thing, by going solar you will be helping both yourself and your beautiful planet. Make a difference!

EnergizedPAK

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