You Could Actually Profit Off Of Solar Power?

(Find this article and others like it on DriveWealth.com)

The past week has been nothing short of hectic, with America’s presidential election results affecting markets worldwide. If you’re like many people, you have probably seen many politically driven articles and social media posts in the past few days. For you, investors, that’s actually great! It’s definitely important to stay updated on this news and understand how different perspectives are affecting global markets. However, regardless of your political views, it seems everyone might also be able to benefit from a topic that’s a little “sunnier.” With that, it only seems fair to discuss the recent advances in solar technology! Did you know you could actually make a profit these days by installing solar panels? Stay tuned.

Most people already know a little bit about solar energy. What we usually see are solar panels on the roofs of homes or workplaces. Their function is basic – they absorb the light of the sun and convert it into stored electric power. When we see them around, we usually think that the people in those homes or workplaces are attempting to save a little extra money on their energy bills or trying to make the world just a little bit greener. Or a lot greener. In fact, if we went out today and were able to harvest and retain the Earth’s sunlight for just one hour, we would collect enough energy to satisfy global energy needs for an entire year.

 Sounds pretty great to me; so, why doesn’t everyone start capturing solar power? Here is where most critics of renewable energy will start to cite the inherent costs of installing solar panels. Indeed, in 2015 it was estimated that the average installation costs for residential solar panels were between $15,000 and $40,000. Yikes. Makes more sense. Not only is that a large range between possible costs – which homeowners need to assess clearly before making the investment for solar panels – but also a difficult investment to make if you don’t think you’ll come up with an extra $20k (or more) in the next few years. For this, we have two answers: budget your money and consider the time solar panels take to pay themselves off.

Before we go any further, we need to set something straight: while solar energy is not your typical “investment” (think, stock market investments like you’re probably used to) it is an investment. After you put your money down, you will likely earn returns. So, just as you would save for your normal investments, you can budget to save for solar panels, as well. Don’t’ forget that just because you’re saving up for one doesn’t mean you can’t still save for the other!

Further, when considering solar energy, most people don’t even begin to consider the amount of time it will take for solar panels to pay themselves off. What this means is that solar panels could likely provide electricity for your home that is significantly cheaper than your current energy bill. Depending on how much solar energy you can actually collect (highly dependent on your location and weather patterns), you could end up paying off solar panels in a matter of years just from the money you save on your electric bills. For example, in South Carolina, the average time it takes for solar panels to “pay for themselves” is between 5 and 6 years. From there, the savings are yours. So, the investment is long term, but definitely not impossible.

Not only could the panels pay themselves off, but they could also drastically increase the value of a property just through their installation. In fact, it is estimated that property value will increase by $20 for every $1 in energy bill savings you realize over the course of one year. On average for medium-sized homes, this means an increase of $18,324 in property value – definitely something to consider.

Finally, one of the quickest growing advances to the solar energy world is the possibility to actually profit off of solar panels immediately. How is that possible? The opportunity to profit instantly from solar panel installation arises from the ability to divert excess energy to your neighbors. Effectively, you can capture the same amount of energy as you normally would, but you can sell what you don’t use. In the first quarter of this year, New York City even announced an app called Brooklyn Microgrid that aims to connect Brooklyn residents who are looking to buy or sell excess solar power. The app shows you where power sources are located around you and which of your neighbors are willing to sell their energy. Plus, an added bonus: these “microgrids” can separate from the larger electric grid during big storms or emergencies, leaving participating residents virtually unharmed.

With all of these factors, it’s clear that solar energy is becoming a more attainable “investment” that could help you save (or even profit) for your other, more standard “investments.” As solar power continues to grow, you might even consider looking into investing in both solar panels AND the companies that make solar energy possible!