Install Solar Panels At the Right Time
Assuming that these trends continue, you can save approximately $1,450 on the price of your system by putting off your solar purchase for a year. If you wait two years, that number could go up to $2,750. However, remember that every year you delay your solar decision is another year that you miss out on the financial benefits your solar energy system provides. This is called your opportunity cost. There are many variables that influence the total financial returns you can expect to see from solar over its lifetime. The most obvious variable is the upfront cost of the solar panel system itself. Thanks to the falling cost of solar. Investing in solar power is a major decision, so its no surprise that some would rather wait and go solar a few years down the road. But there are also several reasons to invest in solar sooner, not later.
The incentives won’t last forever
Thanks to falling costs in solar panels and components, and generous federal and local incentives, going solar can be highly cost effective. But while the cost of solar panels will likely continue to fall, the government incentives will not be around forever. Incentives such as the 30% federal tax credit on solar were originally introduced with the goal of subsidizing solar technology at a time when it was very expensive and would have otherwise been cost-prohibitive. But now, component costs have dropped significantly, and incentives are still available. However, as component costs come down, the incentives will begin to expire.
A similar scenario applies to SRECs, or Solar Renewable Energy Credits. SRECs are credits that solar system owners receive based on the power their system generates. The credits can be sold for cash, and are trad-able on open markets. Their value is based on supply and demand, and the consensus among market predictions is that their value will decline significantly in the next decade. In other words, SRECs are worth the most now, and will be worth less in the future. So in order to take advantage of solar incentives, now is the time to act.
Invest now to see high returns later
Electricity is a commodity we all use. There’s no question about that. So why pay more for electricity than necessary? If you have the logistical and financial means to invest in a solar system, you should. The sooner you invest in a solar system, the sooner you will be able to reap the benefits of thousands of dollars in savings on electricity. If you pay cash for a system, once your electricity savings breaks even with your cost you are generating free electricity and saving money. If you lease a solar system, you start saving immediately – though savings add up over time, so the longer you have the system, the more money you stand to save.
