Although solar panels can be a great way of creating energy and reducing your electricity bills, they can also prove to be very expensive. You need to know the price of a solar system as well as your options regarding financing or leasing. Energy Sage's free estimate calculator allows you to quickly calculate upfront costs and potential 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. You could easily recoup your investment if you ever sell your home.
Alternatives to buying a solar panel system upfront
You may be able to get a solar loan if your budget is not sufficient to cover the cost of all the panels. This was an uncommon option until recently. But, now, you can find many solar-specific loan companies that offer attractive rates and flexible terms. These loans allow customers to pay in regular installments for a fixed period of time while they still own their solar panels. They also give them the opportunity to save on their electric bills.
A power purchase agreement is another option to buying a solar panel system upfront. This arrangement allows you pay for the panels over a specified time frame, with the price increasing over the time. This arrangement is cheaper than buying the panels straight out of the box, however, you'll be paying more over time. Plus, you'll receive a federal tax credit for the solar electricity you generate.
Cost of a solar system
A variety of factors affect the price of a solar-panel system. The first is the system's size. Solar panel systems that are larger than those of smaller dimensions will cost you more, but they will produce less energy. This means that average $/W is much lower. Cost can also be affected by the type and size of solar panels. Some panels are more expensive than others, but this doesn't necessarily mean that they'll perform better.
Other costs to be considered include permit fees, local inspection fees, and solar tax. As more people are turning to solar power for their energy, the cost of this technology has fallen. The National Renewable Energy Laboratory reports that the average cost to install solar panels has dropped between 13%-18% since 2010. To get a more accurate cost of a solar panel system, talk to a local solar professional.
Incentives for going solar
A way for homeowners to reduce the cost associated with installing a solar system is by offering incentives. Numerous states offer different incentives. Massachusetts residents are eligible to receive a 15% tax credit. This credit can be worth up $1000. Federal tax credits may also be available for solar installation. A federal tax credit may be up to 30% of the cost of installing a solar system.
New York has a block grant program for homeowners that encourages them to go solar. These grants can be worth up to $8,750 for a typical residential project, and are subject to a cap based on the amount of solar capacity installed in the area. In addition, the state allows taxpayers to carry over the remaining credits to the next cycle.
The cost of leasing solar panels
Leasing solar panels is an option if you are considering installing them in your home, but don't have the capital to do so. Solar leases often include maintenance services in the monthly fee. These services are helpful for maintaining your solar system and avoiding expensive repairs. The majority of leases offer the possibility to buy the panels at the end of the lease.
However, solar leases come with certain disadvantages. You will pay a monthly fee that is not low, and it will increase over the lifetime of the system. This can reduce the savings you are expecting. 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.