Here’s Why Now is the Best Time to Save Thousands on a New Solar Installation
From 2006 to 2016, the number of American homes with solar panels installed jumped from 30,000 to over 3.8 million. Most credit this growth to changing consumer habits toward clean energy. But the reality is, the majority of these homeowners made the switch to solar based on the savings they would earn on their electricity bill and the generous tax credits that are being offered.
It’s a well-known secret that the energy companies don’t want you to put panels on your roof. The more you save on your solar installation, the less money they make.
The number one question people have when it comes to solar is how much you can save. That question depends on how quickly you are willing to get a solar system installed.
As we speak, government programs are set to reduce or expire that could be saving you thousands on a new solar installation. If you are interested in saving money and going green, read on.
What You Need to Know About the Solar Tax Credit
In 2006 the Federal Government enacted the Solar Investment Tax Credit. This program, known as the ITC, was monumental in offering homeowners substantial tax cuts on new solar installations. It also helped boost the solar industry’s growth by over 10,000%!
Thankfully, the program was such a success that they extended the tax credit in 2015. But that doesn’t mean it will last forever. Not only is the program set to expire in 2022, but the amount you can save decreases with each passing year.
2020 is the last year you can gain access to the 26% tax credit before it drops to 22% in 2021, decreasing even more in the following years. The average cost of a new installation is around $15,000, which can be a hefty price tag for most of us.
Acting now can save your family around $4,000. But that’s only if you move fast to get you solar panels by the end of the year; if you don’t, you will be missing out on about $1000 in extra savings.
Can You Make Money Off Your Panels?
You may have heard that some people can make money off their home solar panels with just everyday use. While this may seem too good to be true, there are, in fact, state-run programs that can offer you money back for producing energy renewably.
These programs vary from state to state, but if you’re lucky enough to be in a location with these kinds of incentives, you could be getting back thousands each year from energy companies.
One program uses home solar installation to make extra cash using SRECs.
Solar Renewal Energy Certificates essentially use your solar panels to offset the amount of renewable energy your energy company is regulated to produce in a year. These SRECs are given to you after your system creates 1,000-kilowatt-hours of power. In some states, these certificates can fetch up to $300 apiece.
Net Metering is another way states try to incentivize solar. This is a system of credits you get when your system overproduces energy. In the winter months, when the sun isn’t shining as much, you can use those credits to reduce your power bill.
These programs vary from state to state, so make sure you qualify.
There are many ways to save money on solar, but for most of us, the most intimidating factor is the upfront cost of installation. To tackle this, many Americans turn to solar loans to help alleviate some of the financial pressure.
How to Use Solar Loans to Your Advantage
If I told you that the monthly savings you could see on your energy bill could cover the cost of a monthly solar loan payment, you might not believe it. But as we speak, thousands of homeowners are taking advantage of smart solar loans to get solar panels installed practically for free.
There are useful web tools out there that are designed to get you access to these solar loans with low monthly payments. For most of us, these loan payments will be around the price of the average power bill.
Unfortunately, these kinds of savings will depend on where you are. To start discovering these savings see if you are in a qualifying area.
To truly appreciate what kind of money you will be saving takes a real understanding of your system’s longevity. The average solar installation lasts around 25 years. Which in some states means the total saving you will see in the lifetime of your system is about $50,000.
When you add all this together with the tax credit and all the state programs, you can see why many homeowners aren’t hesitating to make the switch.