How Much Solar Costs
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We have broken down the cost of solar so anyone can understand.
There are many components to cost of solar. A solar system can consist of photovoltaic (solar) panels, power inverter, charge controller and battery. The solar panel themselves are the most expensive components. The price range for panels is extremely wide. Because of all the various manufacturers and quality of the plexiglass, conduit and photovoltaic cells the range is $150-$700 per panel. Since panels can get pricey you don’t want to get anymore than you need. Solar Choice USA will perfectly match your goals, power consumptions and solar panel production. If you can’t afford the initial cost to eliminate your bill, we provide expandable solar system that you can easily add more panels onto later. If you plan for the future today it will be more cost effective in the long run.
No one can predict the clouds, the sun, the temperature and all these things determine the amount of power your panels create. For those that are in remote location and want more sustainable power, sophisticated charge controllers and battery storage systems assist in stabilizing the frequency of power for practical use during the day and night. These systems often range in expense depending on quality of the controller, inverter, and battery systems, all of which vary in individual pricing.
The typical residential solar system will cost between $5,000-$20,000 once solar rebates and incentives are taken into account. However, this is a small price to pay given that you will probably spend over $50,000 on electricity over the life of your solar system. With solar energy’s popularity rising, some companies have even started offering options, where the installation requires little to no out-of-pocket expenses.
Ultimately, the true cost of solar will depend on how large you want your system to be and what the available government rebates and incentives are when purchasing. Unfortunately, the rebates will run out of money eventually so if you want to purchase a solar system, it is better to act now than risk missing out on money.
Are there any tax incentives and rebates if I want to buy a solar system?
The best thing about solar power is someone else is going to help you pay for it. The power companies, federal and state governments all have some type of solar incentive. Clean energy is a must as our world progresses. We cannot rely on fossil fuels forever. Solar Choice USA is up to date on all applicable incentives and rebates. Here is a brief rundown on some of the basic rebates and incentives that can lower the cost of solar if you want to buy a solar system:
Federal Tax Credit
The Investment Tax Credit (ITC) allows individuals to deduct 30% of the cost of a solar energy system from personal federal income taxes with no maximum limit. This applies to both new and existing homes and only those systems that are placed in service by Dec. 31, 2016.
Individual State Rebates
States often offer flat amount rebates or a progressive system of rebates based on the size of your solar system. Detailed, comprehensive information on your state’s rebates can also be found at the government’s Database of State Incentives for Renewables & Efficiency.
Municipal and Utility Rebates
Most municipalities and major utilities offer rebates specific to the installation of solar power systems for residences. In addition, numerous rebates exist for Advanced and Innovative Technologies if you choose to upgrade your photovoltaic system with more intelligent controllers and battery systems. Click here for more information about solar rebates and incentives throughout the US.
Interest Tax Writeoff
If you take out an equity loan or a title one home improvement loan you can writeoff the interest on that loan just like the interest you pay on your mortgage.
The easiest way to help you understand how these tax incentives and rebates operate,is to sign up for your free Solar Radiance Report. Click Here
What about financing and lease options?
Many homeowners do not want to purchase a solar system because even with rebates and incentives, the up front cost of solar can still be very high. Fortunately, there are other options for those consumers who want to go solar: financing and leasing. There are a number of financing and leasing programs available to all homeowners who have good credit and are installing a qualifying solar system:
Home Loan or Home Equity Line of Credit
Similar to taking out a bank loan to finance a remodel of your home, some banks will offer loans to finance solar systems. Homeowners with higher credit scores will find it easier to receive these loans. The bank may have requirements that the system is permanently attached to the home so it remains part of the property which allows the bank to treat the system as a secured loan and therefore offer a lower interest rate. Average interest rates for these types of loan are similar to or slightly higher than a home mortgage.
Many solar installers have developed partnerships with their own third-party loan providers that allow them to offer financing programs to their customers. Although your installer will coordinate the loan and may help you with many of steps in the process, the third-party (usually a bank or national loan provider) will provide the cash to pay for the system. You will then make payments to the third party rather than the installer. The interest rates for installer loans are similar to or slightly higher than a home mortgage. You need to talk to your solar installer to see if this is even an option with them.
Solar leases allow homeowners to effectively ‘rent’ solar panels for their home. Under this arrangement, the solar installer retains ownership of the system while it’s in use at your home. You simply agree to make a monthly lease payment to that solar installer who often times will maintain the system including panel cleaning and inverter replacement (typically after 10 years). Typically, the rental fee plus your new lower utility bill from solar is still less than you would be paying on your utility bill without solar. Most solar installers who offer solar lease options have a variety of offerings with different down payments to accommodate the financial restraints of their customers. This is currently one of the most popular ways to go solar in California. Leasing is only available in CA, SC and NJ.
Power Purchase Agreement
A power purchase agreement (PPA) is similar to a lease agreement in that a third-party pays for and owns the solar system. In a PPA, instead of paying a fixed monthly lease amount for a system, you agree to pay for the electricity that the system produces at an agreed-upon rate for a set number of years. In this instance, the purchaser receives the benefit and security of a predictable electric bill for a number of years despite continuing increases in utility prices.
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