While solar panels are an excellent way to generate energy and reduce your electric bill, they can be quite expensive. You need to know the price of a solar system as well as your options regarding financing or leasing. Energy Sage's instant estimate calculator makes it easy to calculate the upfront costs and savings. Millions of Americans want to go solar. Homes with solar systems sell faster than those without them, and often for 20% to 17% more. It is possible to easily recoup the cost of your solar installation if ever you decide to sell your home.
Alternatives to paying upfront for a solar panel system
You can get a loan to finance the whole solar panel system if you don’t have enough cash. Until recently, this option was rare, but now there are plenty of solar-specific loan providers that offer competitive rates and flexible terms. These loans allow for you to pay your loan in monthly installments, so you can still have your solar panels. Also, you will be able to enjoy the electricity savings and lower electric bills over time.
Power purchase agreements are another alternative to purchasing a solar panel system in one payment. This type of agreement allows you to pay the panels over time with the price increasing as time passes. This arrangement will usually save you more money than buying panels right away, since you'll be paying a longer term. In addition, you will receive a federal credit for the solar electricity that you generate.
Cost of a Solar Panel System
Cost of a solar panel system depends on many factors. First, the size of the system matters. Although larger solar panel systems can be more expensive than smaller ones, smaller systems will produce less electricity. This means that the average cost per Watt is lower. Cost is also affected by the type of solar panels. While some panels may be more expensive than others but they will perform better, it doesn't mean they are necessarily more expensive.
Local inspection fees, permit costs, and solar panel taxes are all important to consider. As more people use solar power, the price of it has dropped. According to the National Renewable Energy Laboratory (NREL), the average price of installing solar panels has fallen between 13%-18% over the past decade. Ask a local solar professional to get an accurate estimate of the cost of a system with solar panels.
Get incentives to go solar
There are incentives for homeowners who want to go solar. These incentives can be used to lower the cost and install a solar panel system. Many states offer different incentives. Massachusetts residents may be eligible for a 15% tax credit that can be used up to $1000. The federal government offers tax credits to solar installations. The federal tax credit is available up to 30% of the installation costs for solar systems.
New York State has a block grant program which rewards homeowners for going green. These grants may be worth up $8,750 in a typical residential building and are subjected a cap based the area's total solar capacity. In addition, the state allows taxpayers to carry over the remaining credits to the next cycle.
Leasing solar panels comes at a cost
Consider leasing solar panels if your house is considering getting them. The monthly fee for solar leases usually includes maintenance services. These services can be very helpful in maintaining your solar panel system and avoiding costly repairs. A majority of leases allow you to purchase the panels after your lease ends.
However, solar leases are not without their drawbacks. The monthly payment will not be low and will rise over the life of the system, which can undercut the savings you expect. You will not be eligible to get the federal solar tax credit, or any local incentive programs. You won't be able to increase the home's value by leasing. Additionally, if you intend to move, breaking the lease could prove problematic.