Is it a Wise Time to Go Solar Yet?
For many of us, when we hear experts talk about the cost of solar power, our primary point of reference may be our own monthly electric bill. We look at our bill, divide the amount we’re paying by the amount of watts we’re using each month, and make the deduction that solar energy is still too costly. This, however, is like comparing apples and oranges.
The real barrier for solar energy has never been monthly costs, which are minimal to non-existent, but the upfront costs of purchasing and installing the solar panel system. And upfront costs have never been lower than they are now. Advances in solar technology have driven down the price, as has a more competitive solar market.
But the primary reason that costs are so low right is array of rebate and incentive programs offered by federal, state and local governments, as well as discounts offered by conventional power utilities. The federal incentive program alone can shave 30% of the cost of installation.
The amount that can be saved from these incentive programs varies from area to area. In some places, the savings are truly exceptional. In Florida, solar panel installation and construction company Dana B. Kenyon Company installed 130 solar panels, a massive 26-kilowatt system, on the roof of their own office building. After taking advantage of all available tax credits and incentives, the $240,000 system cost the company only $40,000.
These incentive programs will not continue forever, however. Some are already being phased out, altered or cut. In New Jersey, the fund reserved for the state rebate program was raided last year to help pay down the state’s budget deficit. The program has yet to be restarted. Governor Chris Christie is pushing for revisions in the state’s other green initiatives as well, which may result in cuts to the rebate program offered by New Jersey utilities. The federal incentive program will expire at the end of 2016.
It’s safe to assume that rebate and incentive programs nationwide may never be as generous as they are now. In addition to incentive programs, in most areas energy-efficient home loans are currently available from banks, government agencies and utilities. Again, these programs may never be as prevalent as they are right now. It’s unlikely that interest rates will fall much lower, either.
Meanwhile, conventional electricity costs continue to rise, up 50% in most areas from 1999. Experts predict that costs will double again by 2023. Energy consumption is increasing as well. According to the U.S. Energy Information Administration, worldwide energy consumption is expected to nearly double by 2035. Recent man-made and natural disasters have proven how world events can affect the price of energy, and how precarious energy production truly is. Taken all in all, there may be no better time to go solar than now.
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Hailing from Oakland, CA, Brittany Mauriss is editor for CalFinder, a free service that connects
you with residential solar installers and remodeling contractors. Her passions are music,
sustainability, and helping people make beautiful homes.
