Residential Solar System Investment Put into Perspective
A new solar PV system for your home is an investment. Depending on the size of the system, the investment may be moderate or substantial. When homeowners look into having solar panels installed, they sometimes are over-focused on the initial cost. If you’ve been thinking about going solar and are concerned about the upfront costs, here’s some info to help you put that cost in perspective.
1. Solar Federal Investment Tax Credit
Between now and 2021, you can claim a sizeable portion of your residential solar investment as a credit on your income taxes. The Federal Solar Investment Credit (ITC) is set at 30% through the end of 2019, after which it drops to 26% in 2020 and 22% in 2021. The credit is scheduled to end after 2021. The ITC is a great way to start reducing the overall cost of a solar system right away.
2. Other incentives and rebates
Your local or state government may offer incentives such as sales tax exemptions, tax credits, property tax exemptions and various rebates when you switch to solar. Make sure to check with your city, county and state offices as well as your utility company to find out what’s available for you.
3. Attractive financing
Many financing options exist for homeowners purchasing a solar PV system. It’s not uncommon to find deals for very little or no money down, which lessen the initial impact of the cost of a system. Solar loans can be secured or unsecured. Check with your loan office or solar provider to get details on making solar financing work for your best interests.
4. Impact on utility bills
Another important element to consider in putting the cost of solar panels in perspective is the immediate utility-bill savings your system will bring. As soon as your panels begin generating energy, that’s your energy, for which you’ll pay nothing to anyone. As days, weeks, months and years pass, the amount of money you’ll save by producing your own energy will be substantial.
5. Net Metering
Many U.S. utility companies offer a process known as net metering. This allows you to bank onto the main power grid all excess energy your solar panels produce and then reclaim that energy later, when you need it. With net metering, you never lose the value of the energy your system generates.
6. Increased home value
Each real estate market is unique, but most Realtors agree that homes with quality solar panels often sell for more than comparable non-equipped homes. If you plan to sell your home while your solar system is still under warranty, you might want to talk with a home appraiser or solar installer to learn more about increased home value.
These are six things to keep in mind to help put the cost of a solar PV installation in perspective. If you’d like to know more about the cost benefits of switching to solar, contact your local solar experts at Burlington Fireplace & Solar in Burlington, WI. Visit us at 857 Milwaukee Ave., or reach us by phone at (262) 763-3522.