Cost Benefits of Going Solar Today
You could not only benefit from more money in your pocket but the financial freedom that comes from the sustainability of solar.
Going solar is an excellent investment for many. But, other factors, such as making necessary energy efficiency improvements first, come in to play when discovering what your ultimate cost benefits will be. With solar more affordable than it has ever been, and your return on investment waiting to accumulate, we want to share why we believe you should not delay. Consider these reasons for deciding to go solar today and think about what your savings could be this time next year if your home generates renewable energy.
Why Should You Not Delay Solar?
- Safe investment with immediate returns
- Federal and local incentives
- Inexpensive financing solutions
Safe Investment With Immediate Returns
Recent swings in the stock market have left many questioning what to do to protect their financial futures. They are wondering where they should invest or whether they should even invest at all. Especially in an environment like we are in now, investing in a solar system is a safe investment that provides immediate returns now and into the future. Investing today provides multiple cost benefits:
- Decreases costs of living in your home – With the right solar system, you can significantly decrease or cut out your energy bill altogether.
- Hedge against increasing utility rates – You’ll save money by avoiding the average 3% utility rate increase each year.
- Adds value to your home- Home values show an increase of 3-4% when you own the PV system. In 2019, households with solar sold for about 4.1% more according to Zillow.
- Peace of mind – Solar energy provides self-sustainability in the face of economic uncertainty.
The cost of solar has never been so affordable. Studies show that the cost of solar has fallen over 20% over the past five years and dropped by 89% since 2010.
- Decreasing hard costs – Companies can manufacture equipment such as PV solar panels, racking, wiring, inverters, and batteries more efficiently and in larger quantities to meet the growing demands.
- Decreasing soft costs – PV design & engineering, permitting, and installation efficiency has dramatically improved bottoming out these expenses.
- Product efficiency – Solar systems have become more efficient and, in connection with other smart energy management technology, are producing impressive results at cheaper costs.
So, should you wait until solar prices drop even more instead of installing today? We do not recommend it. Because soft costs are relatively fixed, and equipment costs only account for about 36% of a home’s solar installation. Solar equipment is already very cheap and will not drop as dramatically as we have seen over the past decade. By waiting to go solar, you are delaying the cost benefits that could be yours sooner.
Significant Incentives Set to Expire
Incentives and rebates for photovoltaic systems and energy efficiency improvements are continually changing. Always check to learn the most up to date incentives that could boost your savings.
- Federal tax credit (ITC) – When considering if now is the right time to go solar, taking advantage of the 26% federal investment tax credit (ITC) for solar purchases is a significant factor. This credit is decreasing each year and will drop down to 10% in 2022 before it finally disappears. Learn more about how the ITC works, and a step-by-step guide on how to opt-in at https://www.energysage.com/solar/cost-benefit/solar-investment-tax-credit/
- Local incentives are available now in some areas. But do not delay; some of these incentives are beginning to decrease or go away entirely. The sooner you opt-in, the more you will save.
Flexible Financing Options
On average, EnergySage estimates that residential solar customers reach their solar payback at about 7.5 years. After that, they benefit from energy savings for the next 25-30 years.
With multiple ways to purchase solar, it is essential to understand your options and what is the best fit for you.
- Cash is always the most economical way to pay for a solar system. Purchasing your solar upfront may seem costly, but the savings over the life of the system can be upwards to over $30,000.
- Many $0 down financing options exist, including Loan Financing and other Third-party Ownership options (leases or power purchase agreements).
- Most loan financing options provide $0 down with low-interest options and extend for up to 25 years in some cases…nearly the entire estimated life of the system.
“A year from now, you may wish you had started today.” Karen Lamb
Delaying in any way means you’re delaying potential savings. Homeowners may benefit from a virtual consultation that will assess your home’s unique profile, teach you about the best utility rate plans available to you, and help you understand how to increase the comfort of your home and save money at the same time. Learn how this time next year, you could not only benefit from more money in your pocket but the financial freedom that comes from self-sustainability.