No matter how you pay for your solar installation, you enjoy utility bill savings. But when you own your system, solar becomes an investment that offers increasingly lucrative returns.
In some states, the returns are higher than what you’d receive from CDs, bonds, and even the S&P 500. We’re talking about internal rates of return that exceed 10%.
But it’s possible to boost the ROI of your investment even more. Below are proven strategies for maximizing your solar returns.
Make Your Property More Energy-Efficient
We’ve covered this in an earlier article. But by making your home or business more energy-efficient, you can reduce your total electricity consumption. This leads to immediate energy bill savings. And it also reduces the number of panels you need to install. This helps to speed up the payback period of your investment.
And far from being a hassle, most energy efficiency improvements are 100% painless. Common strategies include:
- Swapping out older appliances with ENERGY STAR alternatives
- Adding better insulation (ex: doors, windows, attics, and basements)
- Replacing incandescent light bulbs with compact fluorescent lights (CFLs)
- Installing a “smart” thermostat to regulate temperatures more efficiently
2. Take Advantage of All Solar Incentives
When you own your system, you qualify for any number of solar incentives designed to reduce the upfront cost of installing panels. When combined together, many of these local, state, and federal incentives can slash the total cost of your installation by 50% or more.
When you decide to go solar, be sure to apply for all relevant incentives in your area, including:
- Solar rebates (regional)
- The Solar federal tax credit (national)
- Net metering (available in all 50 states)
- The feed-in tariff (available in 10 states)
Applying for these programs is a complimentary service that comes standard with all Direct Energy Solar installations (for those who finance their systems using cash or loans).
3. Use High Quality Solar Components
Solar is an investment that lasts a minimum of 25 years, so it pays to use quality parts.
And here’s why:
- High quality solar components capture more energy per square meter. This maximizes your utility bill savings.
- High quality components last longer. 25 years is the minimum standard warranty, but a well-installed system can last 40 years or longer.
More energy capture + longer lifetime = higher ROIs
At Direct Energy Solar, we use cutting-edge solar components that have been rigorously tested in the field by our expert engineers. Our solar inverters are some of the most efficient in the industry. And you have your choice of top-performing photovoltaic (PV) panels.
4. Use Licensed, Experienced Solar Professionals
Just as you should invest in quality parts, you should also stick with experienced solar experts. Your system will perform better and last longer.
And avoid the temptation of installing panels on your own. DIY solar is cheaper upfront, but you forfeit many of the great solar incentives mentioned above. As a result, your installation ends up costing more in the long run.
But even among licensed contractors, quality can still vary. So stick with trusted contractors who bring years of professional experience in the field. Direct Energy Solar, for example, was ranked #2 on Inc. Magazine’s list of fastest-growing private US companies (2012). With thousands of installations under our belt, we have an unmatched track record for helping customers receive the highest possible returns from their solar investments.
5. Increase Your Property’s Solar Exposure
One final solution for boosting solar ROIs is to increase your property’s exposure to the sun.
The more sunshine your panels capture, the more clean and free electricity your system will generate. This inevitably leads to lower monthly electricity bills and higher solar ROIs.
- If you have the option, install south-facing panels that can capture the most clean energy during the sun’s east-to-west trajectory. Read this article for more.
- If your roof is partially shaded by neighboring trees, consider trimming or removing them altogether. Doing so is sometimes the more environmentally responsible thing to do (it’s true). Read this article for more.
- If your roof doesn’t receive any sunlight of all, you might explore ground-mounted solar installations instead. Read this article for more.
Ready to Boost the ROI of Your Solar Investment?
The above list is only scratching the surface. There are countless ways to further maximize your savings and boost the returns from your solar PV installation.
And at Direct Energy Solar, were happy to share all of these strategies—free of charge.
Simply schedule a no-obligation consultation with our expert installation team. They’ll assess your property’s solar potential and recommend any number of suggestions for increasing the financial and environmental dividends of your solar investment.
To schedule your free Direct Energy Solar appointment today, click here.