The expense of setting up solar panels has dropped by over 70% in the past ten years, and the prices keep getting lower, making it one of the most affordable options for generating power.
It might seem like a good idea to hold off until the costs go even lower, but there’s no assurance that they will keep decreasing. We’ve compiled a list of the top five reasons why now is the perfect moment to switch to solar.
1. Federal Tax Credits
At present, there are unparalleled tax incentives for installing solar panels. This year marks the final year that the Federal Renewable Energy Tax Credit will provide a 30% rebate on the total cost of your solar system. The tax incentive will remain accessible in the coming years, but it will gradually reduce to 26% in 2020 and 22% in 2021. You can still take advantage of the 30% tax credit as long as your new system is put in place by December 31, 2019.
2. Local Incentives
Governors are also providing incredible benefits to simplify and reduce the cost of solar energy. Massachusetts is providing a $1,000 state tax rebate for solar panel installation, along with various solar financing options tailored to fit your individual needs. The latest benefit introduced by the state is the SMART initiative, which compensates customers of Eversource, National Grid, and Unitil for the electricity they produce at a set rate per kilowatt-hour (kWh) for a decade. The rates vary from 29 to 31 cents per kWh, depending on the area and the time of signing up. The rates go down as more space is available, making it advantageous to act quickly.
In recent times, Municipal Light Plant (MLP) districts in Massachusetts have put in hundreds of thousands of dollars into a rebate scheme aimed at encouraging people to adopt solar energy. These MLPs are at present providing up to 50% rebates on the total cost of a solar energy system. However, these rebates are being offered on a first-come, first-served basis, and the amounts available vary from one MLP to another.
Rhode Island is also stepping up with its own benefits, with the Renewable Energy Growth program being a standout example. Residents who join this program receive 28.45 cents for every kilowatt-hour (kWh) of electricity they supply to the grid for the initial 15 years their system is operational, which is higher than the standard retail rate of 19 cents per kWh.
Solar energy has never been more accessible with these local benefits contributing to the overall savings!
3. Smart Investment
Although it might seem like it costs a lot, solar energy is actually a great new option for putting your money to work. The profit you get from solar installations often outranks the returns from a lot of stock and bond options. Generally, homeowners can expect to see a return on their investment of between 10-30% each year. Since the price of electricity keeps going up, as it has been doing every year, the return on solar investments will go up too.
4. Support a Clean Environment
Is switching to solar power actually beneficial for the planet? What’s the true effect of a single home adopting solar energy? Here’s the scoop: The typical American family consumes around 900 kilowatt-hours (kWh) of electricity each month. By harnessing the power of the sun instead of conventional energy sources, that household can reduce its CO2 emissions by more than 8300 pounds of coal annually!
Solar power for generating electricity is entirely free from carbon emissions, classifying it as a clean energy option that benefits the planet as a whole. In 2010, the sector generating electricity and heating accounted for the highest carbon dioxide (CO2) emissions worldwide. Opting for solar over fossil fuels aids in lowering air pollution, which can lead to health issues like asthma. Solar power diminishes the amount of CO2 in the air, which is key to global warming, the rising of sea levels, the acidification of the oceans, and the escalation of extreme weather events worldwide. Choosing solar panels isn’t just an economical move for your finances; it’s also a step towards helping the environment.
5. Energy Independence
Installing a solar system is a way to invest in your own self-reliance! By harnessing solar energy, you dodge the unpredictability of the energy market. As electricity costs climb unexpectedly, there’s no alternative solution than generating your own power. This empowers you to escape the rollercoaster of electric prices. Additionally, by producing your own energy, you gain control over your utility costs. You can further enhance your energy self-sufficiency by incorporating battery storage systems, such as the LG Chem battery.
As more residences and commercial properties embrace solar energy, it also reduces the demand for foreign fossil fuels. Opting for solar panels can lead to savings of tens of thousands of dollars throughout the lifetime of the system, meaning more of your money stays in your pocket instead of utility bills!
