How To Start Saving With Solar Today
The number one reason people go solar is to spend less on their monthly electricity bill. Seems as obvious as combining peanut butter and chocolate, right? It is. Going solar is a less expensive way to get your electricity and will continue to be in years to come.
The only trouble with solar is it does require the initial costs of installation. Think about buying a car: when most people buy a brand new car, they don’t drop thousands of dollars right then and there. Rather, they finance the car over a number of years, making it more affordable to enjoy a new ride.
Solar is no different. Some pay for it in cash but most finance their systems with no money out-of-pocket; payments can be made over a 10-25 year term. Using this method facilitates a lower monthly payment than what it would cost to get power from the utility company. There is a third option that many do opt for, typically because they are sold by a highly trained solar salesman. That's the lease option. While leasing does result in a lower monthly payment, none of those payments actually go towards the value of the system. In fact, this option isn’t much different than renting power from the utility company.
Using the same financial tools most people use to buy a new home or a new car, homeowners can own their own power and pay less per month. For most every homeowner going solar, the primary reason for their switch is to improve their financial situation. A secondary reason is that it's the right thing to do to help the environment.
Take Advantage of Tax Incentives
Homeowners can receive a one-time tax credit of 26% off the purchase price of a solar system. So, for example, if the initial solar panel investment typically costs around $20,000 in your area, the tax credit would net you $5,200 when you next file taxes.
According to the Office of Energy Efficiency & Renewable Energy, you might be eligible for this tax credit if you meet all of the following criteria:
Your solar PV system was installed between January 1, 2006, and December 31, 2023.
The solar PV system is located at your primary or secondary residence in the United States, or for an off-site community solar project, if the electricity generated is credited against, and does not exceed, your home’s electricity consumption.
You own the solar PV system (i.e., you purchased it with cash or through financing but you are neither leasing nor are in an arrangement to purchase electricity generated by a system you do not own).
The solar PV system is new or being used for the first time. The credit can only be claimed on the “original installation” of the solar equipment.
Solar Homes Are Concentrated Where Electricity Is Most Expensive
Solar homes are heavily concentrated in areas where electricity is most expensive. If you look around where you live right now, you may not see a lot of solar panels on people's roofs. If that is the case, you probably don't live where electricity is more than 11 or 12 cents per kilowatt hour (kWh) with plenty of sunshine. You will find higher concentrations of solar in the following states: Colorado, Utah, Nevada, Arizona, Texas, Florida and North Carolina.
You will also find solar in areas where the cost of electricity is up around 18 cents (or more!) per kWh and with less overall sunshine; Massachusetts, New York, Connecticut and New Jersey. You may also live in California or Hawaii; both states have very high costs of electricity and plenty of sunshine for solar panels to absorb.
In the coming years, as the cost of electricity continually increases, solar will become more and more attractive as an alternative to renting power from a traditional utility company.
Utilities Companies Are Like Landlords of Electricity
Buying power from a utility company is the equivalent of renting a home. It is a monthly cost that will never go away, no matter how much money you give them. Plus, the cost of it increases each year– and if you don't pay? Goodbye electricity!
Solar provides a fixed cost for an ever-increasing expense. There is equity to be enjoyed when you no longer have to give your hard-earned money to the landlord anymore. All the money you put towards solar, you retain in equity– just like in a home. Anyone buying a home will need power and want to use the power your solar system generates. Start saving by going solar today!
