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The Top 10 Benefits of Switching to Solar

By How Do Solar Panels Lower Your Electric Bill? No Comments

For most people, making the decision to go solar brings up many questions. Even just thinking about switching to solar energy can sound strenuous. However, many people don’t know how easy and simple the solar process can be!

That’s why we want to give you the top 10 reasons people make the decision to go solar!

1. It’s Exciting to Join The Green Movement.

People love the fact that they gain energy independence from their utility. While their neighbors continue to receive rate increases, owners of solar do not. When a utility raises their rates, you just save even more! It’s a great feeling to know you are not contributing to our carbon emission epidemic, but rather, you are using the latest clean energy technology to produce your power.

2. Solar Tax Credits.

The Federal Government offers a 30% federal solar tax credit for any residential solar panel system installed. This program has been extended until December 31, 2020. If you pay taxes, you qualify for this program, and your net cost for solar is 30% less. If you lease, the leasing company receives this credit and often uses it to reduce your monthly lease payment. Either way, you benefit.

3. Solar is More Affordable than Ever.

The average cost for solar from all installers in California in 2010 was just under $10.00 per watt. By the end of 2013, the average cost per electric-vs-solar-bill.pngwatt was $5.05, and today you will find the cost at $3.85 per watt very common. It is cheaper to go solar today than it has ever been.

4. Net Metering.

After solar is installed and turned on, any power you generate that you do not use in your home or business flows into the grid, and you receive a credit from your utility for that power. This is called net metering. Without solar, if you are on vacation, your electric bill would be lower because you were not home using things requiring power. With solar, even when you are on vacation, you generate power and build credits. You never lose the value of the power your solar system generates.

5. Little or No Solar Panel Maintenance.

Repairs are covered by manufacturer’s warranties. Maintenance is minimal; consisting of keeping the panels free of dirt and debris. This is done by rinsing the panels with water as needed, usually about two times a year.

6. Solar Will Not Increase Your Property Taxes.

In July 2014, California Governor Brown signed SB 871 which extends the existing solar property tax exclusion until January 1, 2025. In California, the continuation of this policy will allow homeowners to install solar energy without a reassessment of their property taxes.

7. Solar Adds Value to Your Home.

Research by the U.S Department of Energy’s (DOE) Lawrence Berkeley National Laboratory finds strong evidence that homes with solar photovoltaic (PV) systems sell for a premium over homes without solar systems. When selling your home, the value of your home increases by the cost of your solar system.

8. Lower Your Carbon Emissions.

Over the next 25 years, an average home system will save the equivalent of 120 tons of greenhouse emissions, driving a car 218,182 miles less, and absorbing CO2 by planting 4,800 trees.

9. Quality Improvements.

Manufacturer’s warranties are a standard 25 years for production levels and ten years on workmanship. Efficiency for both panels and inverters are also improving. Five years ago, a common panel was rated at 185 watts of DC power. There are panels rated at 400 watts today although more common is in the 250 – 300-watt range. More power from the same space is possible because of quality improvements.

10. The Cost of Not Going Solar

Our need for electricity is not diminishing. The cost of traditional fossil fuel generation of power and the maintenance of the grid is always increasing. Where I live, the largest utility in the area has increased their rates by 50% – 88% over the last ten years (!), depending on the tier rate from which you are buying power. Power from the sun is not costly; it is abundant and other than the initial investment for equipment, it is essentially free. Take a pencil and total how much you spent last year on electricity. Now, multiply that amount over 25 years.

Author Bio

John Rocha is the Digital Marketing Director at Sunlux Energy and enjoys learning and educating people about solar energy technology. He was born and raised out of Edmonton, Canada and got his degree in Marketing from Edmonton University. He also has a black belt in Tae Kwon Do and runs a nonprofit organization.

What to expect from a solar contract

What to Expect from a Solar Contract

By Buy Solar Panels No Comments

You’ve decided to go solar. Now it’s time to start thinking about how you’re going to pay the solar bill. Like buying a car, you can purchase the system outright or lease it. You could also sign a Power Purchase Agreement or a PPA, meaning you buy energy from your rooftop solar panels but you don’t own the system. An investment company does. Head over to our Solar Financing Guide to find a detailed breakdown on how you can pay for your solar project.

Your choice of ownership options affects how much money you will save on your solar panel system. It also affects the responsibilities you take on after signing a contract. We talked about the basic pros and cons of ownership options in our solar education series. Now let’s break them down further so you can see what to expect, what to watch out for, and whether direct ownership, a lease, or a PPA is the right option for you.

What is Direct Ownership?

What to expect

Like buying a new car, you select from a range of features offered by a solar installer, who’s then responsible for fulfilling your order. You can pay for a solar energy system outright or take out a solar loan.

The number of solar loan options has steadily grown in the last few years. You can now choose between short and long-term solar financing options with little to no money down. In some states, you can tack the system cost onto your property tax bill using an option known as property-assessed clean energy (PACE) financing. It’s a good idea to consider all of your solar options.

What to watch out for

Your system is supposed to last 25 years or longer, so it is important to choose quality components and a solar installer that you can trust. Do your homework and compare at least three bids in order to get the best deal.

As the owner, you will be responsible for maintenance. While there usually isn’t much maintenance required, it is a good idea to put aside 1% of the system price each year to cover expenses. Make sure you know how to monitor system performance. Otherwise, a drop in energy production can easily go unnoticed for months, leaving a serious dent in your solar savings plan.

Who should do it

If you want to maximize your savings, direct ownership is the way to go. Multiple financing options can help if you don’t want to put all the money on the table. Make sure that you take full advantage of the 30 percent federal tax credit (ITC). Only if you can’t take the advantage of the credit would leasing be a better option.

What is a Solar Lease?

What to expect

Solar lease offers are a big reason why the number of residential solar systems in the US has ballooned to one million in 2016. They are convenient and require little-to-no upfront payments.

If you decide to lease a solar system, the solar company installs solar panels, an inverter and everything else that is needed to produce clean energy. You pay to lease the system, and in return, you can lower your monthly electricity bill with the energy it generates. After a certain amount of time, typically 25 years, the company takes the system back or gives you a buy-out option.

What to watch out for

Many lease companies offer contracts with escalators, meaning your rental fee for the solar system will go up by a certain percent each year, typically 2 percent to 3 percent. While that is less than your utility rate increased in the past years, there is no guarantee that this trend will continue. If things go bad, your lease payments can increase faster than your utility rates, and your savings would shrink. The lower the escalator in your contract, the higher are your future savings.

The leasing company is responsible for maintaining the solar system. But to make sure that it will do what is needed to keep performance up, you should ask for a performance guarantee in writing. The lease provider will demand access to your property in order to maintain the system. Make sure those legal demands don’t go further than you feel comfortable with.

It can get tricky if you want to sell your house before your solar lease is up. Either your buyer needs to take over the lease or you will have to buy out the contract. But who is responsible to patch the holes in your roof if the company takes its solar system down? You’d want to fully understand the process before you sign.

And don’t believe for a minute that all lease offers are the same. Get at least three bids and compare thoroughly.

Who should do it

If you just look at the numbers, owning a solar system will save you much more money than leasing one. And while not having to worry about maintaining panels and inverter is convenient, it is a minor issue for systems built from quality components. But there remains one major reason to sign a lease contract: If your tax burden isn’t high enough to take advantage of the 30 percent federal tax credit, leasing might be the way to go. In that case, the lease provider claims the credit and hands some of those savings down to you.

What is a Power Purchase Agreement (PPA)

What to expect

Just like a lease, a Power Purchase Agreement (PPA) constitutes third-party ownership. The solar panels on your roof are owned by the PPA provider, not you. But instead of paying for the system, you pay a monthly fee for the energy it produces. Since those contracts usually cover a 25-year period, you essentially agree to purchase your energy in advance for a pre-negotiated price.

What to watch out for

The pros and cons of a PPA are very similar to a lease agreement. One thing you should especially look out for in a PPA is that the amount of energy the system produces actually meets your needs. The contract will typically require you to buy all the energy the system generates, whether you can use it or not. So if the solar system is too big, you’ll pay for something you don’t need. If it is too small, you don’t save as much as you could have. Make sure you know your annual energy consumption, measured in kilowatt-hours (kWh), and check that the system’s estimated output is a match. Also, keep in mind that your energy needs might change over 25 years. Consumption will go down once the kids are off to college or it might rise if you get an electric car.

Who should do it

Once again, it mainly comes down to whether or not you can take advantage of the federal tax credit yourself. There is no distinct advantage of a PPA over a lease or the other way around.

How Solar.com Can Handle All Of This For You

At Solar.com we are always in the corner of the homeowner. From initial information collection to vetting solar installers to analyzing the bids that come in, to provide the installer our contract to ensure you are projected, all the way to months after installation we are always here for you. If you ever have any questions please do not hesitate to call (888) 454-9979.