Why Solar is a Good Idea in a Bad Economy
Installing a solar power system on your home is a good idea, even in uncertain financial times.
There are many benefits to owning solar that can help you plan for a more sustainable future, both ecologically and financially.
The first benefit of an owned PV Solar System is that it will help you control your energy costs.
According to the U.S. Department of Energy, electrical rates are set to rise at a rate of 4.5% a year. There is no limit to how high your bill could go in the future. The truth is that the grid system in America is over 100 years old and operating with antiquated equipment. The grid continues to fail and requires higher and higher maintenance costs, and those costs will be passed along to you, the customer. Owning your own Solar system will effectively “lock-in” your rates. You can generate the power you need from your own roof and no longer be subject to rising utility rates.
Another reason Solar is a good investment is that more and more utility providers are going to Time-of-Use billing.
This will mean your electrical bills could go up dramatically. Under this form of rate structure, you are charged more for the energy you use during “Peak” hours. Mostly this is in the evenings and during the summer months. With a Solar system on your home, you will be able to produce the power you need to avoid these rising costs.
In Colorado we also have access to Net-Metering, which will allow you to collect credits from energy you produce but do not use.
This means that you can add up a bank of credits for months when you are producing less, like winter months where the sun shines less throughout the day.
One of the biggest financial incentives for going Solar is the added value a PV Solar System will add to your home.
According to PV Value reporting, you could be adding the cost of the system as value added to your home, saving even more money in the future.
Another big incentive to go Solar is the effect it has on the overall economy.
Solar Energy now employs more workers than oil and gas combined. As the technology gets cheaper, more companies are adopting their own Solar systems in order to prepare for energy sustainability in the future. Big corporations like Wal-Mart, Apple and Google are going Solar. With large arrays being installed on their locations, more jobs continue to be created and, more money is invested in the economy.
The 2020 Federal Tax Credit for renewable energy upgrades to your home is 26%.
On January 1st, 2021 that will drop by 4% potentially equaling thousands of dollars in savings. In order to claim the full tax credit, you will have to be fully installed by the end of 2020, with projects taking from 60 to 120 days depending on your location and utility. What this means is going Solar earlier in the year will guarantee your install by the end of the year. In addition to the federal tax credit, you may qualify for additional rebates depending on your utility. Most of these rebates are on a first come first serve basis, so the sooner you sign up, the more guarantee you will have to quality for these additional savings.