Have you ever delayed a purchase because you knew that the item would be cheaper if you waited?We do this a lot with consumer electronics – especially iPhones and computers. We know that next week or next month, there will be a cheaper, faster, or better model. And it makes sense to wait since we’ll receive more bang for our buck.We see this same basic logic applied to PV systems as well.Solar installation costs keep going down month after month – often dramatically. Between 2007 and 2012, PV manufacturing costs fell by roughly 80%. And prices continue to plummet every quarter.This is why many homeowners and businesses put off going solar. Why pay a higher price now when you can find a better deal tomorrow?It’s a reasonable question. But in the world of solar energy, waiting may actually cost you more.
Solar Installation Costs Are Falling… But…It’s true. If you buy your installation next year, it’ll be cheaper than if you buy it this year. Solar installation costs are trending downward.But what many people overlook is the fact that they’re paying for grid electricity prices during that wait.Those extra electricity bills can really add up.Let’s say that your current utility bill is $200 a month. Well, over a 5-month period, you can expect to pay a minimum of $1,000. During that wait, do you really think that the price of solar will go down an additional $1,000?Maybe. But how confident are you that:
- Utility companies won’t raise their rates in the meantime? In 2013 alone, SDG&E raised its rates between 12% and 40%.
- Solar incentives won’t expire while you wait? After all, rebates are already gone. And net metering could be next.