Dear homeowner,
For decades, we have relied on an energy system that stifles the sky and excludes our wallets due to pollution. But today, we are at a turning point where we can choose a path that not only preserves our ecosystem, but also protects our future. Few home upgrades immediately increase property value, cut monthly utility bills and save thousands of dollars over time. Installing solar panels is one of them. Every year you wait, you leave your money on the table. The power rate continues to rise. The motivation won’t last forever. The best time for solar energy? Now.
The federal solar tax credit currently covers 30% of your system costs under the Inflation Reduction Act (IRA), but its future is uncertain. The new government has revoked more than 30 environmental rules and criticized the IRA, calling it a “green new scam.” With this shift in policy, renewable energy incentives, including tax credits at IRA roots, may reduce (if not eliminated). Tariffs on steel and aluminum may also increase the cost of solar panels. Solar locks are installed today while reducing reliance on fossil fuels. Nominal electricity prices have risen 33% over the past decade (from 12 cents to 16 cents per kilowatt-hour), according to the U.S. Energy Information Administration.
Once considered a niche environmental choice, solar energy has now become a mainstream and pragmatic solution. In other words, solar energy is not only beneficial to the environment, but also financially meaningful. Let’s take a look at arithmetic.
For simplicity, let’s say you bought a $1,000,000 home and are debating a $20,000 solar installation. With the current federal tax credit, you will immediately save $6,000, bringing your net cost to $14,000. This is still a major upfront investment, but a Zillow study found that homes with solar panels are 4.1% higher than comparable homes. A recent study found that the figure was 6.8%. This means that the value of your home will increase to $41,000 to $68,000 the moment the system is installed.
In 20 years, assuming your solar panels cut your $100 monthly electricity bill by 60% (save $720 per year), you’ll save $14,400, which is more than your initial investment. Whether you stay at home long enough to “break even” is irrelevant. Solar energy adds value from day one, making your home more attractive to buyers when deciding to sell.
If you are worried about upfront expenses, financing is also an option. Loans at 6% (current interest rate) for 20 years, meaning $143 per month. Your system will cover most of the loan payments and once the loan is paid off, all savings will be placed directly in your pocket. Meanwhile, utility rates will keep rising, but your solar cost remains fixed, making your investment more valuable over time.
The economic benefits of solar energy will not stop your electricity bills. Many local utilities also offer incentives to make solar energy more affordable. In my hometown of Austin, Texas, our electricity provider Austin Energy offers $2,500 in rebates that you can pay all or apply for financing to lower your monthly fees. Many other cities from Los Angeles to New York also offer worthwhile incentives.
When the U.S. imposed a 30% tariff on imported solar panels in 2018, it was estimated that prices for U.S. consumers rose by 35%, slowing adoption and causing $19 billion in private sector solar investment. Encouragingly, despite these challenges, the solar industry grew 128% in the first Trump administration. But with the new 10% general tariff and 25% tariffs on steel and aluminum, we are likely to adopt a slowdown again. Homeowners who install solar today can lock in their current prices before inevitably rising.
“The economic benefits alone make solar an obvious choice, but the impact is far beyond your wallet. With each panel installed, we are closer to the future where clean energy is the norm, not the exception.”
Pairing solar with other green options can amplify savings and impact. Switching to an electric car means refueling the car with sunlight from sunlight instead of fossil fuels, reducing gas costs while reducing smoke and urban heat island effects. Smart home upgrades, such as energy-efficient equipment or heat pumps, further reduce your energy utilization, thereby maximizing your solar investment. These options add up to turn your home into a self-sufficient system where energy costs are predictable, with lower bills and you are no longer at the mercy of rising utilities and fuel prices. The solar panels on the roof are not only a one-time upgrade, but also the foundation for the future of your home and environment for your future work.
Financial benefits alone make solar an obvious choice, but the impact is far beyond your wallet. With each panel installed, we are closer to the future of clean energy being the norm, not the exception. Imagine a world where the buzz of fossil fuel plants fades into memory, the air is crisp and the sky is clear, and the energy that powers our houses is not from the slow destruction of our planet, but from the infinite power of the sun.
Every solar panel installed is a quiet rebellion against a system that has long been detained by the fossil fuel industry and has accelerated the warming of our fragile planet. By choosing solar, you are not only investing financially; you are representing generations, which will go on the planet long after us. You mean that the delicate balance of forests, oceans and life should be better.
Optimistic about a better future,
Daryush Nourbaha
Daryush Nourbaha is a graduate of Colombia’s Sustainability Science Sciences Manager at Collins Aerospace.
The views and opinions expressed here are those of the author and do not necessarily reflect the official status of the Columbia Climate School, the Institute of Earth, or Columbia University.
