The price associated with installing solar is falling rapidly. Since installing solar can dramatically cut your energy costs, it makes sense to make the commitment and do the installation now.
A decade ago, installing a residential photovoltaic system that could produce electricity could cost upwards of $50,000. Improved technology and manufacturing processes have reduced prices by more than 60% in the past few years. Couple that with incentives and now is a great time to make the switch.
Currently, the average upfront cost of a six-kilowatt solar panel system runs between $16,260 and $21,420, before taking into consideration incentives that include tax credits.
How Much Is Energy Costing You
Energy costs vary across the country with states like Massachusetts getting 21 cents per kilowatt-hour from their residential customers while residents in Kentucky pay less than 10 cents per kilowatt-hour. One thing remains constant, however: traditional energy costs rise no matter where you live.
Financial Incentives for Solar Panel Installation
Homeowners who buy their panels can claim a federal tax credit worth 30% of their purchase cost no matter what state you live in. That’s a $6,000 return on a $20,000 home solar system. One caveat is that your taxable income must exceed the 30% credit amount to get the full benefit. However, you can roll over any unused credit in future years.
Couple federal tax credits with state and local incentives and you have a win-win situation.
Stabilize Electricity Prices
Traditional electricity relies heavily on fossil fuels like coal, gas and oil, which are bad for the environment and in limited supply. Because this is so, the prices are volatile and dependent on factors outside your control.
Solar electricity boosts your energy independence by protecting you against increases in utility prices. Once you have a solar system, you not only help the environment, you become technically energy independent. This makes your home less likely to experience blackouts or brownouts as your solar system is its own small power plant, giving you greater grid security when it comes to natural or man-made disasters.
With solar, you are in charge of your energy consumption, the costs for that consumption remain constant, and your system will be durable. Go solar to become energy independent with less chance of interruption.