Every year, solar energy is becoming more and more affordable. Advances in technology and efficient manufacturing practices continue reducing the cost to install solar panels on residences.
In fact, solar panel costs have dropped 82% in the last 11 years. And the best part? You still don’t have to pay for the entire installation cost out of pocket.
That’s right; solar power costs are rapidly decreasing and the government still wants to help you pay for it. How nice is that?
Related Post: 4 Primary Advantages of Solar Power For Your Business
So why is the government offering to help you pay for your solar panels? And what programs are available to make it actually happen? Keep reading to find out how you can save thousands when you install solar panels at your home.
Why Solar Panel Costs are Falling
Today it costs just $0.068 to produce one kWh of solar energy. In 2010, it cost $0.378. Solar panel installation is getting cheaper and cheaper. But how?
One of the biggest reasons is due to efficient manufacturing. Because demand is so high, companies are able to produce much larger amounts of components necessary to assemble panels.
This leads to economies of scale, and we as consumers will continue to benefit from it. On top of that, more and more companies are producing solar equipment, making the market much more competitive, which helps drive prices down as well.
And of course, with every passing year, the technology used in converting solar energy to electricity continues to improve. This means smaller, lighter panels can outperform much heavier, larger, more expensive panels from 10 years ago.
All of this contributes to massive solar panel savings. But lower prices aren’t the only reason to invest in solar power today.
Why the Government Wants to Help You
The government wants to help you pay for solar panels. Isn’t that so generous? It’s true.
In the summer, across the country, millions of homes, apartments, and business are cranking their AC at the same hours each day. This puts a massive strain on the electricity companies and can lead to blackouts across cities.
On top of that, our country is realizing that our planet is in danger due to global warming, primarily due to fossil fuels. Instead of producing and burning these fuels, our country needs to become more dependent on renewable energy, such as solar power.
As a result, there are many programs available today that provide big savings on new solar panel installation.
Programs to Save You Money
There are multiple solar energy savings programs available. Some are at the national level, while others are at the local level. Here’s what you need to know.
Federal Tax Credit
Currently, the federal government is offering an incredible tax credit, known as the federal solar tax credit, on new solar installations. The credit provides 26% back on your total installation cost when it comes time to file your tax return.
So if your total installation cost is $15,000, you would receive $3,900 back in the form of a tax credit, which is a dollar for dollar reduction on your taxes. That’s a pretty hefty amount.
This credit was initiated by the government in 2005 and was only intended to last 2 years. But this credit was very successful in incentivizing residents and businesses to install solar panels, so the deadline was continually extended.
The 26% credit is available for new installations through the end of 2022. If you get your panels installed in 2023, you’ll receive a 22% tax credit. This is the last time residential installations will qualify.
2024 is currently the last year this tax credit is expected to be available for commercial installations. The credit will be 10% of the total installation cost.
Local Tax Credits and Rebates
On top of the federal tax credit, some states also offer various tax credits for solar panel installs. Many cities, municipalities, and utility companies will also offer limited-time rebates to incentivize a certain number of new solar customers. These are often 10% to 20% cash rebates.
Net metering is another incredible program that allows you to save even more money and possibly earn some each year as well. Net metering has to be set up properly with your utility company.
When your home generates more electricity than is needed, particularly in the long, sunny days of summer, the excess is sent back to your electricity provider.
In exchange, you’ll earn credits with them. Once your home is underproducing solar energy, such as in the winter, you’ll start to draw electricity from your provider once more. Rather than paying for it, you’ll use up the credits you’ve earned.
Participating utility providers may even pay you at the end of the year for any unused credits you’ve earned.
How to Take Advantage of Savings Programs
One of the biggest eligibility requirements for savings programs is to have solar panels installed by a licensed professional. This ensures your equipment is installed properly, maximizing your potential for energy savings.
So you can’t just order some cheap solar panels online and put them on your roof or in your backyard. The other benefit of working with a professional is ensuring you actually generate as much solar power as possible.
You can also have batteries installed to store excess energy created. Blue Raven Solar is a reputable installer in the Orlando area. Orlando solar power makes so much sense, considering it’s one of the sunniest, solar-benefitting cities in the country.
Also Read: 11 Tips for Safe Online Shopping
More Ways to Save
How you pay for your solar installation can also help you save money as well. Many banks, and even certain mortgage programs, offer subsidized or low-interest loans for solar power installation.
While the programs above will knock off quite a bit from your purchase price, paying with the right loan can help you save on the rest of your cost.
Save Money, Save the Planet
Solar power is a win-win situation; we protect our environment from the overuse of fossil fuels. And we get to save money by not having to pay so much for electricity every month. This can save thousands per year.
With solar panel costs constantly dropping, and incredible programs available to save even more money, there’s never been a more perfect time to bring solar power to your home or business.
Looking for more ways to save money? Be sure to visit our blog today.