For years, a common reason homeowners would give as to why they would not install solar panels was, “It is simply too expensive.” Many homeowners were worried that the investment ultimately would not be worth it in the long run. These days, those fears are largely unfounded. Solar panel prices have dropped drastically in recent years, and by not switching as soon as possible, you could be wasting money by sticking with your current electric setup.
Why Have Prices Been Dropping?
There are a few reasons why solar prices have fallen. First, the manufacturing process has gotten a lot more efficient. Additionally, there has been increased competition in the solar market. Numerous companies have hopped onboard, and that competition leads to more businesses vying for the same customers. This results in reduced prices for you. Finally, the federal government has helped in making solar panels a better option. In 2006, the government passed the Solar Investment Tax Credit. This allows both commercial and residential property owners to take advantage of tax deductions for installing solar panels, resulting in even more savings. For residential homeowners, this tax credit is 30 percent, meaning if you purchased a system for $10,000, then you would qualify for a tax write-off of $3,000. Solar panels truly end up paying for themselves over time!
How Affordable Is It Really Getting?
The universal constant by which all electricity prices are compared is coal. For a while now, coal has been the cheapest way to produce electricity. Scientists have known for some time that generating power from coal is not good for the environment, but it has remained the predominant form of energy generation because of its affordability. However, that has all changed in the last decade with affordable natural gas, wind turbines, and especially solar panels.
Solar panel prices are dropping at such a rate that it might soon be more affordable for countries to generate a majority of its power with sunlight as opposed to coal. Some countries are already discovering this. In places like the United Arab Emirates, it only costs three cents per kilowatt-hour to generate electricity from solar systems. The price of electricity produced from coal is nearly twice that amount. It is projected that by 2025, solar energy is going to be the most widely available and affordable option to provide electricity to citizens all over the world.
Why Should You Invest in Solar Power Now?
This begs the question: why should you get solar panels now instead of waiting a few more years until it is even cheaper? The answer comes from the rate of the price decrease, availability of government incentives, and the savings you miss by delaying your transition to solar. First, while solar panel costs are still dropping, prices are decreasing at a much slower rate than they have other the last 15 years. Solar panels are now mass manufactured and price reductions are expected to be more moderate in the coming years. Second, the federal Solar Investment Tax Credit of 30% only applies to systems installed before the end of 2019. It will take months to get all the permitting and installation complete before your system will be installed so you have to act now. Finally, the cost of other sources of residential electricity, like coal and natural gas, are actually increasing. In fact, in some areas it increased by as much as 10% in 2016. By relying on your utility to provide you with energy, you are throwing your money away. You deserve to start saving money now instead of paying too much for energy for the next decade. And installing solar will increase your house’s resale value. You can not only save money today, but also add value to your property!
By getting solar panels, you will be doing a lot of good for your bank account and for the planet. Anyone wanting to learn more can connect with multiple installers here, or contact PowerScout at 1-650-999-9900. Even renters have a way to benefit.