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Converting Now vs. Later
According to the Solar Energy Industries Association (SEIA), installing a residential solar energy system costs 70% less than it did in 2010,
Install solar panels at the right time vs. later
The cost of going solar is shrinking, and solar adoption is going up. There are many variables that influence
the total financial returns you can expect to see from solar over its lifetime. The most obvious variable is the upfront cost of the solar panel system itself. Assuming that these trends continue, you could save a maximum of about $150on the price of your system by putting off your solar purchase for a year. If you wait two years, that number could go up to around $300. However, every year you delay your solar decision is another year that you miss out on the financial benefits your solar energy system provides (this is called your opportunity cost / investment). Your potential savings in upfront costs could be outweighed by solar’s financial benefits had you acted sooner. Tax Credit: You or your CPA will fill out a form 5695 which roles into a Schedule 3, that is utilized within your 1040. You must pay federal withholding tax throughout the year, or have to owe Federal withholding to claim or see any benefit from the tax incentive. Social Security recipients are most at risk of being unable to acquire this Credit. Converting now
One reason to go solar now: increased electricity prices cut into savings
If you wait to go solar, you’re stuck paying your utility electricity bill every month, which can be an increasingly expensive proposition: electricity prices have risen almost 12% on average in the last 10 years, and depending on where you live, could increase by another two or three percent in 2019 Due to the closing of local power plants. Tier one power is identified as local power. Tier two power is identified as imported power. If you are on a Tier three power rate structure, first tier is identified as local power and tier two is the cost of the next available power source that's imported into the state. An average home spends about $1,200 a year on electricity. If you buy a system that meets 100 percent of your electricity needs today, you can eliminate your electricity costs and have an extra $1,200 in your pocket a year from now. The following year, when prices go up, you’ll save as much as $1,300 – and the savings will continue to grow for the 25 to 35 years that your system is operational. In most cases you can increase your usage by up to 25% to take advantage of the current savings or fixed rate that you are provided. For every year that you don’t buy solar, you lose out on all those electricity bill savings and power buyback credits. Financial incentives will be reduced as the popularity of solar grows
While there are significant rebates, tax credits and other incentives in place to encourage homeowners to go solar, incentives programs get phased out as solar becomes more popular and costs decrease. The current federal renewable energy tax credit is 30 percent through 2019 – but after that point, it will be phased out for residential systems. Some state and local governments offer similar programs that will be reduced over time. A few examples:
California used to have rebates up to $15,000. Popularity of solar in California, reduces the rebate programs and the rebates are scheduled to be eliminated. As more property owners install solar, the value of the rebate is reduced. While incentive programs differ from state to state, make sure to explore the incentives that are available where you live so you can determine how putting off your solar purchase will impact the tax credits or rebates you could receive. SREC programs earn you money, but are expiring rapidly
Some states and utilities have solar renewable energy certificate (SREC) programs and other production-based incentives that pay you for the solar electricity you produce. These programs won’t be around. If you live in a state with an SREC program, you could miss out on the opportunity to generate thousands of dollars in extra income from your solar energy system while you wait to go solar. Financing options make going solar now easy
If you’re interested in going solar now but don’t have the cash on hand for an upfront purchase, there are plenty of financing options available that make it possible to affordably install solar on your home. Many of them even require $0 cash down, so you won’t have to pay anything out of pocket. While there is always some merit in waiting for costs to fall even further, make sure you’re accounting for your opportunity costs as well as your fixed energy rate. We recommend you start exploring your solar options today. Use Net Meter Survey for all your needs pertaining to your solar powered future.
