Invest in Your Future

Invest in your future by going solar with Sunfuse Solar.

At retirement, your income will possibly reduce. This is because you likely won’t be actively making money at that time, but rather live on retirement income – which is just a stipend. The average median and mean annual retirement income for retired persons above 75 years old are $37,335 and $58,684 respectively.

Apparently, the income during retirement is quite meager, and retired persons may be unable to comfortably afford expenses like high electricity bills. When a retired person uses retirement funds to pay, for example, for electricity, this may negatively impact the person’s finances and make him or her unable to cater for more basic needs.

So, in a bid to supplement their meager retirement income, one of the main concerns of every worker in Texas, like everywhere else, is fashioning a means to incorporate low-risk investment options into their retirement plans. The common investment options include fixed annuities, savings accounts, CDs, treasury securities funds, bonds, stocks, etc. However, one of the most viable options is to go solar.

Home solar installation is a high-reward, low-risk investment you can leverage to reduce your living expenses and earn during retirement.

The following are ways in which solar can help favorably impact your retirement.

Solar Panel increases the value of your home

According to a research by the Lawrence Berkeley National Laboratory of the US Department of Energy, for every kilowatt of solar power installed in a home, there is a corresponding increase of approximately $5911 in the home’s current and resale value.

Also, according to the National Renewable Energy Laboratory, for every dollar saved on energy costs, the solar system increases a home’s value by $20. Because solar installation increases the value of a home, investing in solar is a viable investment option towards retirement.

Also, if you intend to sell off your home after retirement, the increased home value (brought about by solar installation) will favorably impact the sale. Installation of solar panels increases a home’s Energy Performance Certificate (EPC) rating; and homes with a high EPC rating sells faster and have an increased value. Home buyers are willing to pay an average of 4.1% more for a house with solar panels. Buyers typically pay approximately $4 per watt of installed solar capacity.

Solar Panel reduces or eliminates your electricity bills

Texas has one of the country’s highest average electricity rates, ranking in the top 10 at $150.56 per month. In recent times, electricity prices have also tremendously increased. For example,

between 2021-2022, the average price-per-kilowatt hour of electricity for Texas residents increased by 70%.

As a retiree who largely lives on meager retirement income, paying such a high electricity bill may increase your expenses. This is pretty much why investing in solar is a smart way to invest into the future. When you go solar, you will be deriving your electricity without any running costs. This drastically reduces or even eliminates your electricity bills.

Note that solar energy systems typically last for 25-30 years. So, you can save your electricity bills for a considerable time.

Solar systems help you maximize your savings

If your solar panels produce more energy than you use, you get paid for the excess and you can apply the credit to subsequent utility bills. This is known as net metering. However, note that the practice of net metering is not required by Texas law, and not all Texans have access to it. Instead, state law makes net metering possible, but it is up to the individual retail electricity providers (ERP) to implement the policies. So, as a retiree, going solar is a viable investment option that gives you some passive earning.

There are also various financial incentives for using solar. For example, under the Federal Tax Credit, when you go solar, you will receive a tax credit equal to 30% of the value of your solar system. This is a great tax incentive you can explore as a retiree.

Furthermore, there is property tax exemption for solar panel installations. Ordinarily, improvements to your home that increases its value will result in a commensurate tax increase on your home. However, when you install solar system, the value of your solar is not factored into your property’s assessed value, and so does not increase your tax. So, going solar is an effective tax-free investment.

Conclusion

There are various attempts to reduce the burden of electricity bills on retirees in Texas. For example, the Senior Citizen Billing Program gives qualifying customers additional time to pay the net amount of their energy bill. However, these attempts do not actually reduce costs and are not in any way viable retirement financial plans.

One of the proven investments that will favorably impact your retirement is to go solar.