Now – to be fair, installing the panels isn’t free. You’ve got to pay for the parts and labor. And in sunny region like San Diego, the average cost for a new residential solar installation is about $10K – after all incentives and tax credits have been applied.
So there are definitely upfront costs.
But solar is an investment and not a traditional expense.
Yes – you pay money upfront, but your monthly electricity bill savings eventually cover all of those costs. And the average payback period for a San Diego solar installation is only 4-6 years.
Thereafter, for the next several decades, the clean electricity your solar panels generate truly is free. And we’re talking about 25-40 years for a well-installed system.
But what if you could speed up the payback period of your solar investment. What if you could recoup all expenses in a shorter amount of time? You’d be able to enjoy that free lunch much sooner – and for much longer.
The following 4 tips explain how this is possible.
1. Take Out a Solar Loan Instead of a Solar Lease
If you don’t have $10K handy, there are 2 primary ways of financing your installation.
Solar loans and solar leases.
We strongly recommend taking out a low interest loan. Either option delivers the same environmental benefits, but only solar loans allow you to recoup expenses and truly enjoy free electricity for decades.
To learn more about the differences between solar loans and leases, click here.
2. Make Your Home As Energy Efficient As Possible
Want to speed up your solar installation’s payback period? Then make your home more energy efficient.
- Switch out incandescent light bulbs
- Upgrade to EnergyStar appliances
- Install a SMART thermostat
Becoming more energy efficient helps you consume less electricity. This alone means smaller monthly bills. But energy efficiency also reduces the number of solar panels you need to install. Double savings.
For tips on energy efficiency, check out these 2 articles:
3. Join San Diego’s Net Metering Program
San Diego has some really outstanding incentives for solar customers. Our personal favorite is the net metering program.
With this incentive, the utility company actually pays you for the excess, clean energy your system generates and feeds back into the grid.
It’s essentially free money – from SDG&E. How cool is that?
To learn more about the net metering program, click here.
4. Be Willing to Pay for Quality Solar Parts & Labor
The higher quality your solar installation – the more energy output per square meter.
The more energy output per square meter – the lower your monthly electricity bills AND the more money/credits you generate with net metering.
This means that if you have a choice between an affordable but modest system and a more expensive but high quality system – you’re often better off going with the latter. Despite carrying a higher upfront cost, the superior solar installation will deliver faster and higher returns.
The same is true when shopping around for solar installers. Higher quality usually carries a higher price. But it also means better and faster returns – i.e. a shorter payback period.
Let Us Help You Get the Shortest Possible Solar Payback Period
At Sunline Energy, we specialize in all of the above.
When you contract us to install your system, we:
- Perform a free on-site survey and energy analysis of your home. In addition, we recommend any number of energy efficiency strategies to help boost your property’s solar potential.
- Help you with all the financing. We walk you through the solar loan process – dotting all the I’s and crossing all the T’s.
- Apply for the net metering program on your behalf.
- Only use the highest quality solar parts – installed by some of San Diego’s best solar contractors. Check out our 5-star Yelp rating for more.
Contact us today for a free consultation. Working together, we’ll make certain that you enjoy the fastest solar payback period possible.