Solar panels are a great way to create energy and cut your electric bills, but they can also be expensive. Consider the cost of solar panels, as well as your options for financing and leasing. Energy Sage's free estimate calculator allows you to quickly calculate upfront costs and potential savings. Millions of Americans are interested in going solar. Solar installations can make homes more attractive than houses without them. They sell at an average of 20% faster and 17% less than houses without them. You could easily recoup your investment if you ever sell your home.
Alternatives to upfront solar panel installation costs
A solar loan can be an option for those who don't want to spend the full cost of the solar panel system upfront. Although this was a rare option, it is now possible to get a solar loan. These loans allow you to pay in installments over a set period of time, while you still own your solar panels and enjoy the electric bill savings over time.
Another alternative to paying upfront for a solar panel system is a power purchase agreement. This arrangement allows you to spread the cost of the panels over a time period, and the price will increase over time. This type of agreement is typically less expensive than buying the panels in full, because you will be extending the term. You'll also receive a federal tax credit for any solar electricity you produce.
Cost of a Solar Panel System
Cost of a solar panel system depends on many factors. The first is the system's size. While larger solar panels cost more than smaller ones but produce more energy, smaller systems are less expensive. This means the average $/W will be 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.
Other costs you should factor in are local inspection fees, permit fees, and solar panel taxes. As more people are turning to solar power for their energy, the cost of this technology has fallen. According to the National Renewable Energy Laboratory the average cost for solar panels has dropped from 13% to 18% between 2010 and 2010. Talk to a local professional for more information about the cost of a solar panel installation.
Solar incentives
A way for homeowners to reduce the cost associated with installing a solar system is by offering incentives. Many states offer different incentives. Massachusetts residents can get a 15% state credit 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 State has a block grant program which rewards homeowners for going green. These grants may be worth up $8,750 in a typical residential building and are subjected a cap based the area's total solar capacity. Additionally, taxpayers can carry over any credits from the previous cycle.
Cost of leasing solar panels
Consider leasing solar panels if your house is considering getting them. The monthly fee for solar leases usually includes maintenance services. These services can be helpful to you maintain your solar panel system and avoid costly repairs. A majority of leases allow you to purchase the panels after your lease ends.
But, solar leases can have certain drawbacks. The monthly payment will not be low and will rise over the life of the system, which can undercut the savings you expect. You will not be eligible to get the federal solar tax credit, or any local incentive programs. The lease won't increase value of your home and breaking it could be costly.