Arranged by
Ariston P Awitan M.D.
I will present this in three segments:
1. How Much Solar Power Increase the Value of Your Home?
2. Solar Power Advantages and Disadvantages
3. Federal Tax Credit for Solar Energy
How Much Does Solar Increase the Value of Your Home?
Economics of Renewable Energy | February 11, 2014 | Posted by Fred Greenhalgh
An investment in solar will deliver an annual return of 8-10%. But what happens if you decide to sell? Because solar has become mainstream, a number of recent studies have been conducted on this subject, helping to guide homeowners, appraisers, and real estate professionals through the process of assigning the appropriate value for a solar energy system on a home in the event of a sale.
Their findings:
• The Berkeley National Laboratory (“Exploring California PV Home Premiums“) found that “each 1-kW increase in size equates to a $5,911 higher Premium“
• The National Bureau of Economic Research (“Understanding the Solar Home Price Premium: Electricity Generation and ‘Green’ Social Status“) found that PV systems “add 3.6% to the sales price of a home … [which] corresponds to a predicted $22,554 increase in price for the average sale with solar panels installed”
We appreciate that market research proves what to us seems obvious: solar is an excellent investment, whether you are staying in the home long-term or need to sell. Solar provides a powerful suite of benefits not seen in any other home improvement:
1. Proven ROI in the form of reduced energy costs for the life of the home
2. Environmental ROI in the form of reduced carbon emissions
3. Long-lived and durable equipment increases in value over time as costs of traditional energy rise
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Solar Power – Advantages and Disadvantages
There is no longer any denying that we need to reassess how we generate our energy. If we simply ignore the fact that the majority of the energy sources we utilize today have an imminent shelf life, the diminishing levels of fossil fuels will eventually cause an energy crisis. Indeed, we’re already seeing prices rocket. Added to that the enormous damage the burning of those fossil fuels is doing to our planet and it is clear that we need to find alternative means of producing enough energy to power the globe.
One popular renewable energy source is solar power. By converting the power of the sun into electricity, solar energy is clean, green, will never run out and, after the initial cost of the solar panels, is entirely free. Of course, as with all energy sources, it has its disadvantages as well as its advantages, both of which we aim to detail in this article.
Disadvantages of solar power
• Solar energy relies upon enough sunlight reaching the photovoltaic cells – on cloudy days here may not be enough sunshine to produce sufficient electricity and production shuts down completely at night so back-up energy sources are necessary.
• Currently, solar panels are expensive to produce and therefore also expensive to purchase.
• Solar panels can currently only convert a maximum of 34% (and around 22% for the majority of panels) of the available sunlight into electrical energy, although more efficient panels are being developed.
• Because sunlight is diffuse, a large number of solar panels are needed to produce adequate amounts of electricity, necessitating both expense and space.
• Some believe solar panels are eyesores and traditional silicon crystalline panels, which are the most efficient, are big and bulky thanks to needing a rigid frame.
• The efficiency of photovoltaic panels decreases the hotter the panel becomes – a problem with an energy source which requires a large amount of sunlight to produce electricity.
• Currently, solar electricity storage is not quite there yet. Solar drip-feed batteries are available but they are costly and bulky.
The methods by which we harness solar power are constantly being improved and, although efficiency and cost are not ideal right now, the future looks like it might be bright, sunny and solar powered.
Note: Recent Improvements:
The new improved designs
use radiant heating, low temperatures, simplicity, integral storage and they have multiple uses for the solar energy.
The new benefits are better efficiency, fewer solar collectors, lower cost, greater architectural flexibility, better reliability and excellent cost performance.
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Advantages of solar power
• The sun is constant – it will always be there and is therefore a reliable, utterly renewable source of energy.
• Once the initial financial outlay has been made to purchase the solar panels, the sun’s energy is completely free.
• As it does not rely on the burning of harmful fuels to generate electricity, solar power is non-polluting – it does not contribute to global warming or greenhouse gas emissions.
• As there are no moving parts in a solar panel, they require very little maintenance.
• Solar power allows those in remote locations to live off the grid without having to rely solely on noisy, smelly generators. It is part of the solution to becoming energy self-sufficient.
• Without the need for wires, cords or power sources, solar panels are incredibly easy to install.
• Solar energy is renowned for its versatility – it can be used to power anything from a tiny torch to a satellite in space.
• Solar technology is improving and reducing in cost all the time, whereas fossil fuel prices are only steadily increasing.
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Federal Tax Credit for Solar Energy
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OVERVIEW
To encourage Americans to use solar power, the EPA and the Department of Energy offers tax credits for solar-powered systems.
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Tapping the sun for power just feels good — solar power doesn’t pollute, reduces our use of coal and other fossil fuels, and thereby helps reduce your individual carbon footprint. But it’s also five times as expensive as electricity from coal and other sources.
To encourage Americans to use solar power, the Environmental Protection Agency and the Department of Energy run the Energy Star program, which, among other projects, offers tax credits for solar-powered systems.
Credits for approved solar installations
If you install Energy Star-approved solar-power systems before the end of 2016, you can claim 30 percent of the cost as a tax credit for the year you installed it.
As a credit, you take the amount directly off your tax payment, rather than as a deduction from your taxable income. You can claim the credit for your primary residence, a vacation home, and for either an existing structure or new construction. Other than the cost of the system, there’s no limit to the dollar amount of the credit.
Claiming solar credits for rental property
You can’t claim a credit for installing solar power at rental properties you own.
The exception is if you also live in the house for part of the year, and use it as a rental when you’re away. You’ll have to reduce the credit for a vacation home, rental or otherwise, to reflect the time you’re not there. If you live there for three months a year, for instance, you can only claim 25 percent of the credit: If the system cost $10,000, the 30 percent credit would be $3,000, and you could claim a quarter of that, or $750.
Filing requirements for solar credits
To claim the credit, you must file IRS Form 5695 as part of your tax return; you calculate the credit on the form, and then enter the result on your 1040.
If you end up with a bigger credit than you have income tax due — a $3,000 credit on a $2,500 tax bill, for instance — you can’t use the credit to get money back from the IRS. Instead, you can carry the credit over to the following tax year. Energy Star states that you should be able to carry the credit over as far as 2016 if need be.
Of course, you need to consult with your Accountant or Tax Attorney when you file this Tax Credit in filing your Tax Returns.
Closing Remarks
In order to help Network Marketers earn in Online businesses, I am always on the look-out for Good Opportunities Online.
Solar Power is one of the hottest opportunities currently online.
About the Author:
Dr. Ariston P Awitan is a Physician, retired Orthopedic Surgeon and a Professional Network Marketer with a mission to help struggling network marketers to become healthy and financially free. He resides in Northern Florida enjoying the beautiful beaches along the Atlantic Ocean.
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Phone: 713-392-5493
Skype: doctony1932
Email: aristonmdmm@gmail.com
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