Solar panels are a great way to save money on your electric bill. Over time, you may not even have an electric bill to pay. Now that you’ve decided to install solar panels, you’ve come to the realization that you may not be able to afford it, and have been told it is expensive. We’ll show you some great ways to still get solar panels without the hefty bill at the end.
You’ll have two options of financing your solar panel installation. First, you can get a PPA or power purchase agreement. Under this agreement, the installation company will install your solar system at no cost to you. The company will sell the electricity the system produces back to you, usually cheaper than what you’d be paying for your bill right from the electric company. Once the agreement has expired, you can either extend it or buy the system outright.
The other option would be to lease the solar system, just like you would lease a washing machine or a house. After the system is installed, you’ll either pay nothing or part of the cost, but not the entire cost upfront. You’ll instead pay for the system over a number of years, depending on how long the lease is until you can buy it.
Taking out a home loan for upgrades and repairs needed on your home can give you the option of being able to afford a solar system.
You can also opt for an energy-efficient mortgage for your home, where a third party owns the system, and homeowners in a close enough vicinity can pay in to use the solar energy.
You can do some research online to find the best installation company but with the lowest cost to do the job. Some companies will give you a deal if your neighbor gets a system installed too.
Installing small solar-powered items instead of an entire solar system can still save you some money both on installation and your electric bill.
Options like solar skylights, solar electric fans, solar thermal water heaters, and pool heaters are easy and budget-friendly ways to begin to go solar in your home.
Some charity organizations will install your solar system for low-income houses for free or almost free.
What Makes Solar Systems So Expensive?
Key factors to keep in mind when deciding on how much you want to spend on your solar system are your electric bill price, where your home is located, and your tax claims. All of these can sway the price of solar panels and solar systems.
Looking at your electric bill, if the monthly payments are quite high, you can get a better deal on switching from the electric company to solar energy. Taking another glance at your bill, notice how much electricity your home is putting out, match that up with how large of a system you’ll need in your home to give you a better idea of how much the system will cost you before installation.
Your home’s location is also very important, if your home doesn’t get enough sun exposure, solar power might not save you any money at all. The weather in your area may have some to do with it as well. If your home is in an area that has a lot of rain the majority of the year and not a lot of sun, this can be a downside of having a solar system installed.
Incentives can help you save a little money in order to afford solar panels too. The United States government gives out offers for installing solar systems as an alternative source of energy in your home. You may even end up with a tax credit by installing by a certain time each year.
The credit you get won’t be a refund of your solar panels or system, but instead, you may owe less or nothing at all on next year’s income taxes. Certain states may have other incentives when switching energy sources, you’ll have to look into that before you have any contractor come and install the system.
Ready to take the leap and enjoy the benefits of having solar power? Then you’re ready to call Live Smart Construction!