Solar Panels Can Be A Retirement Investment

Whether you’re looking toward the future or you’ve already retired, cost containment and putting your money to work for you is critical in making the most of your retirement savings. A variety of investments and savings mechanisms is often necessary for stability throughout your retirement. Many homeowners don’t realize that installing a solar energy system can be one of the smartest, low-risk retirement investments available.

Solar provides steady, increasing returns without the unpredictable fluctuation of rising utility costs. By consistently producing your own energy from the sun, your savings continually grows. Solar can directly contribute to thousands of dollars in savings which would typically be sent in the form of a payment to your electric utility each month.

1. Significantly reduce your electricity bills

Reducing your electric bills is the single biggest benefit of solar, whether you are retired or not. Solar energy has the ability to generate up to 100% of your electricity needs. This means that renewable energy is a great purchase for cutting costs while also reducing carbon emissions. The reduction in your electric bill will allow you to save more money each month to spend on things which can make retirement more enjoyable.

2. Protect yourself against rate increases

Utility rates will continue to rise year after year. In Iowa, the average monthly retail price of electricity has increased 72.55% during the past 12 years in all sectors. Installing solar and generating all or a majority of your own electricity protects you against unpredictable rate increases. A solar array helps to lock in the cost of electricity over the lifetime of your solar energy system which has a 40-year life expectancy. If you are retiring or currently living off a fixed income, solar can help provide consistency in your monthly electricity costs.

3. Increase the value of your home

If you are considering downsizing your home at some stage in retirement, solar can be an attractive selling feature. According to EnergySage, solar panels on average increase a home’s value by 3-4% or about $24,000 on a 6kW array. Studies have shown a solar-equipped home not only sells at a higher price but will also sell faster than a home without solar. For prospective homeowners, solar translates into a smaller electric bill and is a highly attractive benefit to a home. Learn more about how a solar energy system affects property value.

4. Solar incentives can add up

The ongoing financial returns from solar are calculated from the monthly savings on your electric bill. When coupled with available state and/or federal tax incentives* the tax credits can help to offset taxes owed from income such as retirement accounts. Thus, further helping those in retirement make their savings go further. Learn more about solar tax incentives. (*Consult with your tax advisor.)

Save for Retirement with Solar

The economic benefits of solar make it a beneficial investment for people of all ages, even retirees. With solar you can lower your electric bill, protect yourself against the rising cost of electricity, take advantage of available state and federal incentives and energy grants, and increase your property value.

Retirement is all about establishing a sustainable and stable financial future and solar can play a role in building a comprehensive strategy. As with any retirement planning or financial decisions, take your time and speak with a retirement planning expert and your tax professional. When you’re ready to learn more about the financial and environmental benefits of solar, begin here with our Free Solar Analysis estimate.

Sources:

• Fields, Spencer. “Why Go Solar: The Benefits of Solar.” EnergySage, 17 Oct. 2023, www.energysage.com/solar/benefits-of-solar/.
• “U.S. Energy Information Administration – EIA – Independent Statistics and Analysis.” Electricity Data Browser.