It’s time to get off the fence.
If you have even the slightest inclination toward going solar at any point in the future, you need to read this article.
The solar industry is changing fast. It’s important that you move quickly to take advantage of incentives likethe tax credit and net energy metering.
These two very lucrative incentives will be changing or altogether disappearing in 2016 so you definitely do not want to miss out by waiting.
However, those are not the only reasons to schedule your solar installation today. Here are…
The 11 reasons you need to go solar before Memorial Day 2016.
1. The 30% Tax Credit
The Solar Investment Tax Credit (ITC) is the Federal Government’s way to encourage the adoption of solar across the United States by “refunding” 30% of the total solar project cost as a tax credit. The ITC will be expiring December 31st, 2016. That means your solar system needs to be built, permitted and operational by 12/31/16 to qualify for the ITC.
The table below shows the price difference with and without the ITC:
| Installed by 12/31/16 | Installed after 12/31/16 | |
| Purchase Price of a Typical System | $18000 | $18000 |
| ITC | $5400 | $0 |
| Net Investment | $12600 | $18000 |
Don’t miss out on the massive discount offered my the ITC!
2. Changing NEM Rules
Net Energy Metering (NEM) is California’s way to encourage solar adoption. Current NEM 1.0 rules require PG&E to compensate homeowners for excess energy production at market rates.
Let me use a crude example to explain:
Imagine you had a device that could produce gasoline. Every day you produce much more than you need, so you sell it to the local gas station. The current NEM 1.0 rules mean that the gas station would have to pay you market rate for your excess gas. If they sell gas to people for $3.59/gallon, then they have to buy your gas for the same price of $3.59/gallon.
Once the NEM 2.0 rules kick in (Spring 2016), the gas station can now buy your excess gasoline at a rate closer to wholesale, let’s say $2.00 per gallon, then turn around and resell it to someone else at the market rate of $3.59/gallon.
I think you see the point, let’s get back to solar electricity. The NEM 2.0 rules are obviously not as good of a deal for you as the homeowner producing electricity!
Luckily, if you go solar before they change the rules, you get grandfathered in under NEM 1.0 for twenty years. Going solar now will make a difference, especially with how PG&E bills residents on the Central Coast.
When will they change the rules and switch to NEM 2.0? Once residential solar produces 5% of California’s electricity. We are rapidly approaching 5% and it is expected to switch to NEM 2.0 sometime in Spring 2016.
(Note: NEM 1.0 get’s even better with Time of Use rates from PG&E)
3. Peace of Mind
NEM? ITC?
Lots of acronyms with different deadlines!
Don’t let these deadlines stress you out. By going solar in the next few months, you can rest assured that your solar system will be installed long before either deadline occurs. You’ll know that you are getting the best deal on solar possible.
4. Begin Saving Money Immediately
Solar is hands down a great deal even without the incentives. However, the sooner you go solar, the sooner you’ll start to save money! Just imagine heating up your morning coffee with a brewer powered by solar panels on your rooftop.
5. Lock in Low Electricity Rate For Loan Term… then Free Electricity After
The vast majority of people who finance solar save money immediately – meaning that their new monthly solar payment is less than their old PG&E bill. Once your system is paid off you will have never have an electric bill again.
Let’s look at some numbers:
Before solar, you paid $120/mo for your electricity. Now, solar provides all your electricity but you still pay $120/mo for the solar loan payment and the remaining costs from PG&E for electricity (meter fee, taxes, and any extra electricity you may need that your solar isn’t providing).
You might say, “I am still paying the same amount. What gives! How is solar a better deal than before?” Well, there are two simple reasons that it is still a much better deal:
Consistent monthly payments that don’t increase.
Before you had solar, your electricity rates would continue to rise every single year! Historic averages in PG&E territory have been above 6% annually. That same $120/mo electricity bill would be $485/mo in twenty years!
After you get solar your electricity “costs” are primarily the loan payment which is fixed. Only the remaining costs from PG&E will continue to rise but will be minimal since you are producing your own power.
Zero monthly payments once the loan is paid off.
Because your solar system is producing electricity, once you pay off the loan, you are now generating electricity for the entire life of your solar system. That’s a whole lot of years of free electricity!
6. With no moving parts, solar panels have a long life of 40 years!
Solar panels are made to be incredibly durable. That means you can safely expect them to last for 40 years.
Once you pay off the loan… you’ll be generating electricity, for free, for decades.
That is a massive amount of savings when you consider how much the cost of electricity increases every year.
7. Raise your home value!
Studies show that purchasing solar (not leasing!) typically increases your home’s value by around $4.00/watt.
If a homeowner decided to purchase and install an average amount of solar, 4 kilowatts, they could expect their home value to increase by $16,000. Homes with solar are also more appealing on the housing market.
Why? It’s simple.
When you buy a home with solar, you know that you won’t have to pay nearly as much to power that home.
8. Solar is an Investment Vehicle With a Great Return
Is solar a good place to put your money?
Absolutely.
Let’s view solar as if it were a stock that we could invest in:
- Very high internal rate of returns (IRR) of 10-18% each year.
- Consistent stock price that only goes up.
- Protection from market downturns
Regardless of your investment strategy, that is the type of stock I am sure you would want in your portfolio!
9. Your Solar Investment is Guaranteed With a Warranty
There is another reason solar is excellent as an investment:
Imagine that you purchased a large amount of stock from a particular company. The warranty on your solar equipment is akin to that company promising you that your investment will never lose value.
“You mean that if stock prices go down, you’ll pay me to make up the difference?”
That might sound ridiculous, but it’s true. During the 25 year warranty, your solar system’s production is guaranteed.
(Note: Guarantees vary by solar manufacturer. Allterra Solar uses quality solar equipment with great warranty coverage to ensure homeowners have the long-term energy production and savings.)
10. Help create jobs in your local community
Want to know a way you can become a job creator right now?
Invest in solar!
Solar energy has been one of the largest job creators in the US over the last few years. In fact, solar energy is creating jobs at a rate 10x the overall economy.
11. Take a stand for a cleaner, smarter future.
The last and arguably most important reason you should go solar is because it’s the right thing to do. The era of burning dirty fossil fuels and demolishing mountainsides to mine for coal are over. It’s time to stop damaging the environment. As more people start to produce their own electricity with solar, it sends a clear message to energy companies that it is time to change. By investing in solar, you are doing your part to help humanity create a healthier, cleaner earth for future generations.
You are being part of the solution.