Have Solar Installed at Your Home: Is it Worth the Investment?
Solar power is leading the way in clean energy, and that’s a good thing! But on an individual basis, is it a wise decision to install solar on your home? Here are the things you should review to determine if solar is a good investment for you:
The price you pay per kilowatt-hour and the amount of electricity you actually consume, determines how much you are paying for electricity each month. Depending on where you live, the cost of electricity will vary –sometimes quite significantly. The more you are paying or consuming, the more potential for savings that you may experience by going solar. If you do decide to go solar, you will want to have the system custom designed to take care of your home’s monthly electricity usage. If your solar system takes care of your home’s electrical usage each month, you won’t have to worry about the annual rate increases from your utility company. You would also be able to take advantage of the 26% Federal Tax Credit available, which helps cover a huge portion of the cost. You are already on the utility’s life-time payment plan for your electricity, why not take that same money and invest it in yourself.
The price of the solar equipment and installation varies. You can choose a less expensive solar solution, but you likely won’t maximize the potential electricity savings of a system that meets your home’s actual energy needs. Over time, this starts to really add up, but not to your benefit. Take time to evaluate equipment options and designs from different solar companies. You want to make sure that your solar panels carry at least a 25 year warranty, and you choose a solar installation company that sells quality equipment from a manufacturer that is financially strong.
The 3 main ways to get solar:
You can buy your system outright, take a $0-down solar loan, or negotiate a lease/power purchase agreement (PPA). Each of these choices will determine how much money you will save over the useful life of the solar system.
- Paying cash is the least expensive way to buy solar. You will have no interest to pay and you can take advantage of the 26% Federal Tax Credit. Paying cash will have the fastest pay back.
- With a $0-down, 12 year solar loan, you will have fixed monthly payments for 12 years and you can take advantage of the Federal tax credit. Since you have a manufacturer’s warranty of 25 years for the solar panels, from year 12 to 25, you shouldn’t have any electricity bill, if your system was designed to cover all of your electricity needs. That is where you start saving money! Plus, there is no lien on the house, just the equipment.
- A lease/PPA will net you the least amount of savings over the useful life – which is why we don’t recommend that you lease the equipment. The lease payments are normally for 20 years and you won’t own the system. A solar lease typically has an annual escalator on the monthly payments and a lien on the house. The leasing company will take advantage of the tax credit, it won’t be available to you.
Worth the Cost
Installing solar on your home is like building a tiny power generator that replaces how much electricity you need to draw from the grid. If you would like to find out how installing solar could benefit you and your family, call the experts at: New Day Solar a call for a free, no obligation consultation: (855) 444-6329 or visit our website at: www.newdaysolar.com. We have been installing solar systems for over 31 years and will always give you honest answers to your solar questions.