The use of solar panels is a great way for you to produce energy and lower your electric bills. However, it can also be costly. If you're considering going solar, you need to consider the cost of a solar panel system, and your options for 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. In fact, homes with solar installations often sell up to 20% faster and for 17% more than homes without them. This means that if you ever want to sell your house, you can easily recoup the investment.
Alternatives to paying upfront money for a solar system
You can get a loan to finance the whole solar panel system if you don’t have enough cash. 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.
Power purchase agreements are another alternative to purchasing a solar panel system in one payment. This arrangement allows you pay for the panels over a specified time frame, with the price increasing over the time. This agreement will save you money, but it is usually less expensive than purchasing the panels directly. You'll also be extending your payment term. In addition, you will receive a federal credit for the solar electricity that you generate.
Solar panel system cost
There are many factors that affect the cost of a solar system. First, size is important. Larger solar panel systems cost more than smaller ones, but smaller systems produce less energy. This means that average $/W is much lower. The type of solar panel is another factor that can impact cost. While some panels may be more expensive than others but they will perform better, it doesn't mean they are necessarily more expensive.
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 (NREL), the average price of installing solar panels has fallen between 13%-18% over the past decade. A local solar professional can provide more precise information on the cost of installing a solar panel system.
Incentive programs to go solar
Homeowners can get incentives to go solar. This will help reduce the cost of installing solar panels. Many states offer various incentives. Massachusetts residents may be eligible for a 15% tax credit that can be used up to $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's state government offers a block grant program to homeowners who go solar. These grants are worth as much as $8,750 for a typical residential property and have a cap that is based on the area's solar capacity. In addition, the state allows taxpayers to carry over the remaining credits to the next cycle.
Leasing solar panels comes at a cost
Leasing solar panels is an option if you are considering installing them in your home, but don't have the capital to do so. Maintenance services are often included in solar leases. These services can be very helpful in maintaining your solar panel system and avoiding costly repairs. Many leases provide the option to purchase panels at any time after the lease term is over.
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. You will not be eligible to get the federal solar tax credit, or any local incentive programs. Leases won't increase the property value. Breaking the lease can also be problematic if the owner plans to move.