While solar panels are a great option to generate electricity and reduce your monthly electric bills, they can be costly. You should consider the costs of solar panels and your financing options. Energy Sage's calculator provides an instant estimate that allows you to easily calculate upfront costs and the savings. Millions of Americans are interested in going solar. Homes with solar systems sell faster than those without them, and often for 20% to 17% more. It is possible to easily recoup the cost of your solar installation if ever you decide to sell your home.
Alternatives to upfront solar panel installation costs
If you don't have enough money to pay for the entire solar panel system upfront, you can look into getting a solar loan. This option was uncommon until recently. Now, however, there are many solar-specific lenders that offer competitive rates with flexible terms. These loans allow for you to pay your loan in monthly installments, so you can still have your solar panels. Also, you will be able to enjoy the electricity savings and lower electric bills over time.
An alternative to buying solar panels upfront is a power purchase arrangement. This type of agreement allows you to pay the panels over time with the price increasing as time passes. However, this type of agreement usually saves you less money than buying the panels outright, as you'll be extending the payment term. Additionally, the federal tax credit you receive for solar electricity generated will be applied to your bill.
Solar panel system cost
The cost of a solar panel system varies based on several factors. First, the system's size matters. The cost of larger solar panels systems is higher than for smaller ones. However, smaller systems produce less power. This means the average $/W will be lower. Another factor that influences cost is the type of solar panel. Although panels can be more costly than others, this does not necessarily mean that they will perform better.
Additional costs that you need to factor in include local inspection fees and permit fees as well as solar panel taxes. The cost of solar energy has been steadily decreasing as more people look to it. According to the National Renewable Energy Laboratory the average cost for solar panels has dropped from 13% to 18% between 2010 and 2010. Ask your local solar professional for a better idea of the exact cost of a panel system.
Solar incentives
There are incentives for homeowners who want to go solar. These incentives can be used to lower the cost and install a solar panel system. There are many incentives offered by states. Massachusetts residents may be eligible for a 15% tax credit that can be used up to $1000. Federal tax credits are also available for solar installations. A federal tax credit may be up to 30% of the cost of installing a solar system.
The New York state government has a block grant program that rewards homeowners for going 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.
Cost of leasing solar panels
You can lease solar panels if you don't want the upfront investment. Solar leases often include maintenance services included in the monthly fees. These services can help to maintain your solar panel system, and save you money on costly repairs. Most leases also include the option to purchase the panels once the lease period ends.
However, solar leases come with certain disadvantages. The monthly payment won't be low and may rise over time, which could reduce the savings that you anticipate. In addition, you will not be eligible for the federal tax credit or 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.