Solar energy is one of the most popular alternative energy resources that can help you save money on your energy consumption. Most online solar panel ads show you can earn significant money and create a business. However, such a business requires a considerable capital investment to buy land and start a solar panel farm to sell electricity. Unfortunately, such companies are easy to promote but challenging to manage without any background.
In this article, you will learn how to earn money from solar panels and what other financing benefits you can get from using a solar panel. Solar panels are valuable resources, but with the proper guidance, you can save money and use your funds better.
Earning Money from Solar Energy
Solar panels provide clean, green, and emission-free electricity. Those who decide to use solar panels instead of a traditional electricity connection might take years to pay the base amount for installation. Still, they will save over $20K in electricity bills. Electric utility bills are reduced significantly after solar panel installation, helping you save each month’s good power consumption in your household.
Also, one must understand that solar power costs money, not just for installation but also for overhead charges. The higher upfront cost and overhead charges require over a decade of investment. The fees are paid for themselves in the long run, but the break-even point takes around ten years.
Why Solar Energy is Popular
Solar panels are popular because they allow homeowners to save money. The concept is based on the premise that a penny saved is a penny earned. Solar panels reduce the financial strain on homeowners by lowering their electricity bills. Solar panels also offer various economic benefits to homeowners’ taxes. Federal policies such as the Solar Investment Tax Credit decrease the upfront cost burden on taxes and provide support.
A 40% decrease in solar installation costs has made this alternative resource quite in demand. With electricity bills increasing every coming year and solar installation prices decreasing, solar panels are preferred more.
Understanding Solar Panel Basics
The average US household spends over $150 in electricity bills, which would save them over $1800 annually if they switched to solar panels. While the startup cost of installing solar panels might be around $12k, the federal government’s tax credits and other financial benefits allow you to trust this alternative resource.
Solar panels are a set of panels with connecting wires, batteries, and electronics panels. These panels convert light energy into electricity and store it in batteries to be utilized at homes. The connecting cables connect the panels to batteries and the home electricity supply. PV or photovoltaic energy is created and is also called thermal solar.
Potential Income Streams from Solar Panels
There is no direct income stream possible from solar panels. Some businesses might buy land to create electricity using solar panels at these farms. The solar farms require huge capital investment and land area. However, you can use various strategies to get financial benefits. Solar energy credits, net metering, and reduction in their utility bills are a few benefits.
You can also reduce dependence on fossil fuels and use green and clean electricity for your homes. Solar panels are an alternative resource that covers its costs within ten years and helps you reduce your electricity bills to zero.
Generating Electricity for Your Home
Reducing Electricity Bills
The most popular benefit of a solar panel is minimal utility bills. Electricity bills usually come to around $1800 annually, which can be reduced to negligible amounts if one switches to solar panels. Solar panel installation is quite costly, but it eventually covers costs and provides homeowners with various taxation options and credits.
Net Metering and Feed-in Tariffs
Using solar panels through a 1-to-1 net metering policy can save a lot of money. Your solar panel electricity generation is calculated and subtracted from your total electricity consumption to provide a bill of difference. If you have generated more electricity than you utilize, your difference will be rolled over to next month.
Battery Storage for Self-Consumption
Many homeowners use battery storage for self-consumption. You can connect your solar panels with a battery to power your home. You can use this charged battery as an investor or connect it directly for daily usage. Sometimes, you can use these charged batteries if your solar panels are not working properly due to a rainy or cloudy day.
Solar Incentives and Rebates
Solar incentives and rebates are financial benefits in the form of tax reductions rather than cash transactions. These rebates reduce homeowners’ tax fees and provide a credit for homeowners with solar energy. These incentives are similar to utility credits, renewable energy credits, or net metering credits offered by federal and state governments.
Selling Excess Electricity
Grid-Tied Solar Systems
A grid-tied solar system is a solar energy system that maintains a connection with an electricity grid. The system generates electricity and transports it directly to a larger grid system. It consists of a long list of solar panels and net metering devices. These systems provide electricity for other purposes while you also use the generated electricity.
Understanding Electricity Markets
If you have a solar panel setup to generate electricity, you can also sell excess electricity directly to the grid. You can consult local authorities and inform the state government about your plans. To fulfill the demands properly, you must understand the eclectic market needs. Addressing market needs ensures that your electric generation is properly utilized.
Selling Solar Renewable Energy Certificates (SRECs)
Solar renewable energy certificates are sizable income certificates that companies buy. You can generate income by selling these certificates. These certificates are unavailable for everyone, and the requirements differ by state and utility companies. They are financial instruments issued by state governments to earn money from the electricity you generate from your solar panel setup.
Virtual Power Plant Participation
Virtual power plants, or VPPs, communicate with distributed energy resources. They allow grid operators to control demand and manage users’ electricity needs. VPPs are networks of small energy-producing devices, such as solar panels and batteries, that create a unique grid.
Investing in Solar Energy
Solar Leasing and Power Purchase Agreements (PPAs)
A solar power purchase agreement or PPA is a financial agreement between a developer and customer in which details about the design, permit, finances, and installation of solar energy systems are present. You need this agreement to lease your property to a company, and they will use it to generate electricity.
Solar Panel Installation Business
One can also invest in or start their own solar panel installation business to earn a profit of up to 20%. Solar panel installation is quite in demand and provides great business opportunities for individuals. With the right business strategies, capital investment, and technical expertise, you can become successful in this installation business.
Solar Financing and Investment Opportunities
You can also use your funds to invest in the future of solar panels. You can buy exchange-traded ETFs or index funds to invest in solar companies and grow your business. You can also invest stock investments in solar manufacturing companies or utility-scale solar projects.
Solar Energy Stocks and ETFs
With increasing demands for solar energy, ETFs or solar energy stocks are beneficial. They offer great returns quickly and provide additional income for your rainy-day funds. You can use these stocks to create an emergency fund, which has various financial benefits attached to it.
How to Earn Money from Solar Panels: Additional Streams
Solar Panel Maintenance and Cleaning Services
Every homeowner spends over a hundred dollars to maintain their solar panel setup. They require cleaning twice a year and have various other overhead expenses. If you do not have the technical expertise to start an installation business, you can also begin a maintenance and cleaning service specialized for solar panels.
Solar Education and Consulting
Solar education is still way behind today’s technology. Every homeowner researches and explores more information about solar panels as it is a high-investment setup. You can also connect with a solar consultant to provide education related to solar installation. Solar panel consultants deal with customers and will provide information to customers seeking this setup.
Solar Energy Product Sales
The first step in selling solar energy products is to identify the potential customer. Various companies offer solar products for the main arcade, cleaning, and usage, along with solar panels. You can sell these products online or offline or promote any brand using social media to earn extra money.
Solar-Powered Businesses
Solar-powered businesses are booming. Every investment in this sector provides higher returns and various taxation benefits. You can start researching and exploring solar-powered companies to run a green and sustainable business for your future. Such businesses are in high demand and can become highly profitable quickly.
Conclusion
Solar panels are an expensive and highly maintained setup. Usually, it costs around $12-15K for a medium-sized solar panel setup. Most solar panels require maintenance, cleaning, and technical servicing twice a year. This makes the overhead and additional costs much higher than any other domestic setup. With higher upfront costs for installation and expensive maintenance, it is essential to evaluate and research well before installing solar panels in your homes.
Once you have installed it, you must use strategies to earn additional income from solar panel setup. Solar panels offer tax benefits, credits, and rebates to support families with new solar setups and promote green fuel. Consider using Beem for financial assistance and guidance to support your solar installation dreams. You can create successful earnings from your solar panel installation setup with practical financial tools and credit checks.
Read related blog: How To Save Money In Construction?
FAQs
How much money can I make from solar panels?
The money is not in cash form. Depending on your solar panel setup, its electricity generation, and your daily electricity consumption, you can save money. You can, however, provide other services to maintain and clear solar panels for additional income.
What are the different ways to earn money from solar energy?
There are various strategies available to earn money using solar panels, such as net metering, grid installation, selling excessive electricity, and providing your property to solar generation companies. You can also invest funds in solar panels, stocks, and ETFs to earn extra money.
Do I need a lot of space for solar panels?
You need ample space to install solar panels in your home. You might need most of your terrace space to provide sufficient electricity for daily use. You might need a solar panel consultant to discuss your exact solar panel space requirements.
