As solar panels are becoming more popular and government solar energy credits are still available, we believe it’s important to explore solar panels as a cost savings option.
We believe in the future of solar panels for your home, and solar panels for commercial buildings, but we want to prove to you in these articles why over the long run, they will be better options and cost savings for you and address any questions that you may have.
Rising Cost of Electricity
Electricity is produced from power stations which contain large turbines powered by coal. It’s without a doubt that since coal is a renewable energy source that needs to get replenished, coal will become more scarce, and cost will rise. As coal price increases, it will cost more to produce the same amount of electricity and that production cost will get passed onto consumers in your electricity bill.
At the moment, things are fine, but in the future when this cost is rising, it may be too late to switch over to solar energy, as you won’t reap the benefits of buying into solar panels early.
To combat this renewable energy deficiency problem, we believe a renewable energy source which we have plenty of, is solar energy.
Unfortunately, U.S. electricity prices are on the rise despite despite falling or flat energy input prices (such as coal), as stated by many experts, news outlets, and even the EIA. The EIA’s tracking of residential electricity price and forecast shows that we are steadily on the rise.
Solar Panels System – Buying vs. Leasing
You are either going to buy your solar system outright (which will cost $15,000-$20,000 after tax rebates and credits), or you can lease it for 25-30 years. You can take out this loan against your home equity in order to achieve the same interest rate as your home mortgage. There are many pros and cons of buying vs. leasing which we will talk about soon.
Regardless, even leasing it will help save you 20-30% on your energy bill every year for the next 30+ years, and by then the solar panels would of been paid off.
Solar Panels Costs & Benefits
|Home Style||Size||Monthly Consumption||Average kWH cost||Monthly Costs|
|Single Family Home||1500 sq ft||901 kWh||$0.12||$108.96|
Leasing will result in a monthly cost closer to $50 per month to produce the same amount of consumption as above.
Solar Panels Tax Credit & Rebates
If you are buying your solar energy system outright, you qualify for rebates.
The current federal tax rebate for solar panels are:
See your state for specific tax credits for solar panels.
Despite the fact that solar energy and solar panel costs are declining every year, the current government’s solar panels tax rebates, along with state solar rebates far outweighs the rising costs.
If you are leasing your solar energy system, it may even be possible for you to get solar panels for free!
Next Steps to Take
- Determine your current monthly electricity costs.
- Determine your total solar energy costs including state tax credits available.
- Get a free solar panels quote to learn about your possible saving options.
Solar Quotes Companies
We have reviewed a couple different solar energy installation companies. It’s best to get a free quote from many of the companies below to find the best rate in your local area!