Homeowners across the U.S. are turning to solar to lessen their dependency on utility companies, to help reduce CO2 emissions, and to lower their power bills. That’s right, LOWER their power bills. According to the Solar Energy Industry Association (SEIA), the cost to install solar has decreased by more than 73% since 2006, while utility companies are increasing their fees by an average of 5% a year.
Solar has finally become a smart AND affordable alternative energy solution for homeowners, and 2016 is expected to be a record year for solar installations due to the expiring tax rebates. For many homeowners, the average cost for solar is around $100 a month, with an anticipated savings in the tens of thousands over the life of the solar system.
Solar Tax Rebates through 2016
The federal government wants to pay 30% of your solar system and installation! The Solar Investment Tax Credit (ITC) offers homeowners and businesses a 30% tax credit for solar installations through 2016 (Section 25D). Many states have included additional tax incentives on top of the federal rebate. Take advantage of these incredible discounts before they are gone. Read more about solar tax rebates.
How much does solar cost?
The actual cost and feasibility of solar for your home depends on three main factors:
- How much power you need
- Your roof orientation and space for solar panels
- How much you are paying the utility company for power
Take the example of a homeowner who was paying an average of $120 a month to his utility company for electricity. With a 4% annual increase, he expected to pay $68,727 over the next 25 years to his utility company. The payment on a 25-year loan for an equivalent solar system cost him $100 a month. The 25-year savings is $38,727. Since his solar loan did not require any money down, his savings started the very first month, and grows every year.
Once you pay for your solar equipment and installation, your power bill is usually less than $10 a month. Imagine that!
Homes with solar are worth 17% more, and sell 20% faster.
New research by the NREL and Lawrence Berkeley National Laboratory shows that homes with rooftop solar panels are worth 17% more, and sell 20% faster than homes without solar. Read more about these studies and solar home values.
So if you are worried that you may not stay in your home long enough to justify the cost of solar, don’t worry! Your new homebuyer will happily pay extra for your solar system, and your home will sell faster than homes without solar. Imagine a homebuyer knowing they won’t have a power bill.