Can You Afford Home Solar Panels?
News about the reduced price of solar is rarely covered by mainstream media, often leaving you to draw conclusions about the technology from outdated facts and figures.
But today’s residential solar installations are far less expensive than many people realize. In fact, photovoltaic (PV) solar installations are 43% cheaper than they were just a dozen years ago.
It would be hard to name another technology of home solar power‘s scale and magnitude that has experienced such a substantial reduction in price.
But don’t take our word for it.
Check solar prices to see the drop firsthand.
To get solar panel pricing in your area, click here.
Here are the top five reasons why solar has become affordable for almost every homeowner.
1. Savings Through Incentives
A variety of solar rebate programs offered at the federal, state and local levels offer significant savings to homeowners interested in installing a residential solar system. The federal tax credit incentive program is the most generous, covering up to 30% of all installation costs.
Other incentive programs vary from state to state. Some states offer a flat rebate. Other states, like California, work with public utilities to offer per-watt rebates. A few states even offer solar grants and programs for low-income homeowners.
2. Hidden Savings
Most people know that once they install a residential solar system, they can expect to save big on electric bills, but may not realize that they may actually be paid for the electricity their systems produce. Some states offer a Solar Renewable Energy Credit (SREC) for every megawatt-hour a home PV system generates. SRECs are financial instruments that can be sold in a number of ways, through a broker, to a utility company or on the SREC market. Prices for SRECs range from $200 to over $600.
Even with a small solar system, you may enjoy months where the only charge you see on your electric bill is a nominal service charge. When a home PV system produces more electricity than it is currently using, the excess is sent back into the electrical grid. In some states, utility companies either pay for or give credit for the surplus energy. In sunny climates, this can add up to substantial savings.
3. More Hidden Savings
In many areas, utilities used a tiered rate system, charging a base rate for the first 10 kilowatt-hours used each day and increasingly higher rates for additional kilowatt-hours. By offsetting conventional electricity with solar energy, homeowners reduce the expense of higher rates.
4. Even More Hidden Savings
Many utility companies also use Time of Use (TOU) metering systems. Customers are charged a higher rate during the times that power is in high demand. Typically, the highest peak period occurs during the afternoon, when a home solar system is operating at its highest efficiency.
5. Leasing Instantly Lowers Monthly Bills
When the initial costs of purchasing a home PV system are a barrier, you can still enjoy monthly savings on your electric bills by leasing a system for little or no money down. Solar contractors will install, maintain and insure a residential solar system, only charging you for the electricity the system produces, which is typically less than conventional electricity.
Posted on December 13th in Going Solar by Guest Author.