By Jasmine Gill
Solar energy was once thought as the distant future. Due to not only the environmental but also economic benefits, solar energy is becoming more common in larger cities like Austin and Houston. Solar energy has more recently spread its roots into the Brazos Valley.
The concept of solar energy is relatively new and can benefit homeowners and businesses in more ways than one.
“The [solar energy] system supplements the power to the house,” says Adam Burke, president of Texas Green Energy, the only locally based solar panel installation company. “You get the power from the grid and the solar panels. When you are making more solar energy than you can use, the excess flows back into the utility grid and then the utility company will buy it.”
The price of installing solar panels can range depending on the demands of the business or household. Often people are hesitant to install solar panels due to the high initial cost.
“A 5 [kilowatt] system runs around $14,000 — that is a tier one, premium brand solar panel,” says Joe Palmer, general manager of Texas Green Energy. “It has greater efficiency and performance. On average under the 5 kW system, the utility bill will be reduced by 50 percent.”
Solar panels in the long-run can help individuals save more money than what they put in.
“Solar panels come with a 25-year warranty and usually last for 35 years,” says Burke. “Solar panels offset the initial environmental impact relatively quickly and they go on to produce free energy for the next 35 years. The first eight years, you break even. Then the next eight years, you make it back again. It pays for itself three times over during its warranty. People initially look at the cost of the system and tend to be hesitant because it is still relatively new — not everyone is doing it. Yet they will go on and buy a truck or car for around $30,000 without thinking too much about it.”
Due to inflation, the amount of money saved can even increase.
“You can save more money as time goes on due to the cost of energy increasing,” says Palmer. “Solar [energy] allows you to hedge against increased energy costs.”
In addition to the money saved through producing your own solar energy, many do not know the government has created incentives for households and businesses to go solar.
“Both residential and commercial qualify for 30 percent tax credit off of the system cost,” says Burke. “For businesses, [even more] can be deducted from the system. Presently, because of the most recent tax bill signed into law, a business can deduct 100 percent of the cost for the system in the first year. I think that the bigger reason it is not more prevalent in this area is because people are not aware of these incentives and they don’t realize how impressive the investment is.”
Another plus to installing solar panels is that solar equipment is exempt from property tax, according to Burke. The system becomes a part of your home and is covered by homeowners insurance.
The cost of going solar may seem expensive, but it’s a smart choice. Not only are you helping to reduce your environmental footprint, but in the long-run, you’re saving money.
“Having a solar energy system on your building is an excellent investment,” says Burke. “It reduces your electric bill and reduces your impact on the environment.”
