Going Green is Fine, but will Solar Save me Money?

Cut Utility BillsGone are the days when homeowners installed solar panels on their homes only because they (A) lived in a remote location or (B) wanted to help save the planet. With the soaring costs of electricity, many homeowners are installing solar panels on their rooftops because it is a good financial investment that saves them a lot of green. For example, when solar systems are correctly installed for maximum output, many homeowners have immediately experienced a significant cut in electricity costs. In some cases savvy homeowners  actually turn the table on their utility company and get monthly payments back from their utility for the excess electricity their solar systems feed into the utility’s power lines. Check out the following factors which will help determine how much money you could potentially save on electricity costs by tapping into the power of the sun.

Factor #1: The value of rebates and other incentives where you live.

There may be great state and local incentives to purchase solar panels where you live, or federal incentives may be your only help from the government, as far as reducing your cost to install solar panels. Doing some homework on these opportunities is necessary, but it’s also a fairly simple assignment. If you go to the Database of State Incentives for Renewables and Efficiency at dsireusa.org, you’ll find all of the information you need about government incentives. For example, Pennsylvania has a state rebate program for solar panels which, together with federal incentives, can help with your bottom line on investing in solar.

Three programs which can help to make a solar system a profitable investment are net metering, feed-in tariff (FIT), and solar renewable energy credits (SRECs):

  • Net metering is available in most states. This program involves the utility grid taking your extra energy production and crediting it at retail electricity rates. The inputs and draws from the grid are monitored by electric meter monitors. If you use more electricity than your solar system produces, you use credits to “buy back” those kilowatt hours.
  • With feed-in tariff (FIT) programs, the production of your solar system is monitored separately from the electricity consumption for your household. Based on a specified contract, you are paid a high price for solar-produced electricity over a course of years.
  • In states where they are allowed, solar renewable energy credits (SRECs) produce income because environmental attributes, such as avoiding the carbon emissions caused by fossil-fueled electricity sources, can be sold.

Expanding Solar PV System InstallationsFactor #2: Getting the right system installed by professionals.

A little homework is also recommended when choosing a solar installer. A professional installer will be able to accurately evaluate such details as the shading and orientation of your roof. You want to get the most out of a solar system, and smart system design is important to the success of your investment.

Factor #3: The warranty on your solar system.

When working with reputable solar manufacturers, it is typical to get a warranty that is a minimum of 20 years. Because your solar panels will last for decades, you can look forward to savings for many years to come.

Factor #4: Your payment source for purchasing a solar PV system.

The interest rate that you pay on your solar system, of course, will be a factor in determining how much money you ultimately save on electricity costs. Possible sources are vendor financing, a credit union loan, and a loan backed by the government. Whatever your loan source, as long as your system is properly installed, you can count on cutting your electricity costs.

No matter where you live in the U.S., there is enough sun to justify the installation of a solar system. Contact one of our professionals with North American Solar Stores (NASS) for help in determining the feasibility and potential profitability of a solar PV system on your rooftop or property. The sooner you contact us, the sooner you could start saving some green.

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