Answering a Few Simple Questions Could Save You Thousands Annually
Despite the recent implementation of Solar Tariffs at the start of the year, the Solar Energy Industry is still in the midst of a massive growth spurt. Over the last decade installations have grown from just 7.7 gigawatts a year to over 100 gigawatts annually. While the constant increase in savings may be temporarily halted, choosing solar can still be an incredibly smart investment. Depending on the State you live in your system could have paid for itself in as little as 5 years. Ask yourself the following questions about your State, your house, and your finances to see if it’s time to start taking a serious look at getting Solar…
What Incentive(s) are the State Offering? The Federal Tax credit being offered by the government is just the tip of the iceberg when it comes to saving money on your Solar Energy system. A large number of States offer some type of tax credit – here is a list of California’s available programs.
Is SREC Available? Standing for Solar Renewable Energy Certificate (SREC), this program helps you earn monetary credits from your power company. The program requires power companies to generate a percentage of their electricity from renewable sources, so they are incentivized to buy back excess energy generated by Solar Energy systems. Around 30 States (plus the District of Columbia) are part of SREC, including California.
Is Net Metering Offered? Currently 38 States (including California) have a net metering program, which means excess energy generated by your Solar Energy system will be purchased back by your local power company. A net metering policy helps each State meet their renewable energy portfolio goals and benefits owners of Solar Energy systems.
Do You Plan on Staying? Solar Energy systems, when chosen properly, are incredibly savvy investments that pay for themselves and add to the long-term value of your home. However, every homeowner values solar differently and your perceived value in the investment might not align with a potential buyers. That’s why it’s advised to stay in your home long enough for your Solar Energy system to pay for itself.
Is Your Roof Old? Solar Panels and Inverters are incredibly well-made pieces of technology that are typically warrantied for twenty to thirty years. Because of the longevity of the technology it doesn’t make sense to install on an old roof, as you will have to remove and re-install them one that is replaced.
Do I have the Right Roof? The many elements of a roof affect the potential output of a Solar Energy system, so it’s important to know if you will get all the benefits of going solar. Which way the roof is facing/angled, the percentage that is covered in shade, the overall size and even the type of roofing will all drastically alter the cost incurred and potential energy generated.
Should I Buy or Lease? Leasing of Solar Energy systems is available in about half of the States (including California). This provides the opportunity to allow companies to pay for the majority of a system in order to obtain the tax incentives (while you get the cheaper monthly energy bills). However, once the lease is up you don’t own the system and the company will either take it back or allow you to purchase it (possibly at a discounted rate). The best return on investment is purchasing your system outright, though not everyone has the available funds ready. In those instances you can consider a secured solar loan, which uses your home as collateral; the interest from these loans is tax-deductible and the rate is lower then an unsecured loan.
In conclusion, if your State has the right incentives, you’ve got an equitable roof, and you can make the finances work, there still has never been a better time to go Solar. To learn how Sunline can help contact us today for a free consultation.