Is Solar Worth It if You’re Over 50?

by Courtni Wisenbaker-Scheel, Guest Contributor from Modernize  

You are hard-pressed to drive through a neighborhood nowadays and not see at least one roof covered in solar panels. In fact, across the country close to 800,000 homes and businesses have chosen to join the solar movement, resulting in a new solar installation every two minutes. And for most of the population, it makes financial as well as ecological sense. Who wouldn’t want to harness the power of the sun and save thousands of dollars every year? However, if you’re over 50 with retirement on the horizon, is a large investment in solar power really worth it? We at Modernize answer with a resounding “yes!”

Solar Has Never Been Cheaper

It used to be that installing solar power was far too expensive for the average homeowner to ever dream of, but that is simply not the case anymore. As demand and competition have increased, prices have fallen—by 70 percent since 2009, according to a study conducted by the Lawrence Berkeley National Laboratory—due in large part to the Solar Investment Tax Credit (ITC) that was enacted in 2006. The ITC offers homeowners and business owners alike a tax incentive equal to 30 percent of their solar renovation expense, but only until 2019. This percentage will slowly decrease until it drops off completely in 2023, so the time to act on this incentive is now.

The federal government isn’t the only one trying to make sustainable living practices more attractive. Many state governments are following suit as well and offer substantial savings and incentives to their residents, too. The Database of State Incentives for Renewables and Efficiency can provide you with the details of every perk you’d be eligible for were you to add photovoltaic cells to your home.

Reliable and Maintenance-free

Solar panels are one major renovation where you can just kick your heels up and forget about it. Most retailers say that you only need to hose off the panels once a year in order to keep them in good working order! Plus, they add an extra layer of protection from the elements for your roof, which means that a full roof replacement gets postponed by several years, keeping more money in your pocket.

The average solar panel from a major brand usually comes with a warranty of 20 to 25 years, but most systems have been known to last well past this timeframe without any major issues. You will probably want to purchase an inverter to convert the direct current from the solar panels into the alternating current (AC) that your home appliances and electrical system will need. And to store that electricity when the sun isn’t shining, you’ll want some big storage batteries. Even though inverters and batteries have a shorter lifespan, it is still safe to assume that you will be able to get 15 years of service before any issues arise. Considering that most Americans retire around the age of 62, you would have 12 years of virtually guaranteed power completely free. 

Increased Property Value and Decreased Utility Bills

Like most major expenses, though, the final decision on whether or not to move forward comes down to the numbers, and zero-dollar utility bills is certainly a number that speaks to everyone, especially those on a fixed income. The Boston Globe estimated that a homeowner in Boston spends roughly $100 a month on energy, and would subsequently save $35,900 over a 20-year span by eliminating their need for traditional energy sources. Considering that most solar installations run just under $23,000 before any incentives are factored in, that means that your system could pay for itself in 15 years. For homes located in states with aggressive incentive packages, your actual renovation could cost less than $10,000, with payback periods being as short as four to six years. Plus, a home’s property value typically increases by roughly $15,000 once a photovoltaic system is installed, all of which is usually exempt from property taxes.

The United States Census Bureau has found that 69.2 percent of those aged 45 to 54 owned a home in the beginning quarter of 2016, and that percentage leaps to 78.8 for those 65 years and older. That’s a lot of homeowners over 50 who would greatly benefit from converting their home to solar power.

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