How much does a Solar Panel System Cost..?
Solar Panel Review found this to be one of the top reasons people do not install Solar Panel Systems. They are afraid of the cost…money makes the world go round right..! Anyways, the cost can vary which I am sure you knew already…Here below is some useful information I found while searching the web to find out the answer to this question…
How much does a Solar Panel System Cost..?
A system big enough to supply energy for an average home (920 kWh/mo.) will cost $2,400 to $79,000.That compares to $63,000 the average household would have spent on average for dirty electricity over 21 years (assuming that electrical costs rise at an average of 4% per year).
Yes, that’s quite a range in prices. The price is affected by tax credits, rebates, local prices in your area, and how much sun you get. Since everyone’s situation is different, the calculations will vary.
What you’ll see is that in many cases, solar is affordable right this very minute. Most people who have gone solar so far have paid a little extra in order to get their energy without pollution; the environment was their concern, not money. But as solar is becoming cost-competitive with dirty energy, people are indeed saving money by going solar.
Realize that you don’t have to get a system large enough to generate as much as you use. You can start out with a system that generates 80%, 50%, 25%, or even just 10% of your needs to lower your cost. And a 10% reduction in pollution is better than 0%.
The 30% federal tax credit is what suddenly made solar a lot cheaper. Before 2009 the tax credit was limited to $2000. But now there is no limit. So if you install a $40,000 system, you lower your tax bill by $12,000. The credit is 30% of your cost, after any state/local rebates you get. (Case A in the calculator assumes a rebate, so the tax credit in that example is lower.) Note that a tax credit is more powerful than a tax deduction. A deduction just reduces the amount of your income, on which the tax is based. But a tax credit comes directly off your total taxes.
If you don’t have spare thousands of dollars lying around, you can always finance the purchase (i.e., get a home improvement loan). And if you’re in California, you might be able to rent a system by the month instead of paying a ton of money up front. Did I say rental…?
Yes, you might not have to buy a system outright. A number of companies are now renting solar systems to California customers, so you just pay a monthly rate and don’t incur huge startup costs.
But solar is finally affordable in many cases . Here’s why.
- Solar gets cheaper every year. It’s not just that every year solar gets a little cheaper. It’s also that every year dirty energy like oil and gas gets more expensive. And while that’s always been true, what’s special about now is that in many cases those lines have already crossed, making solar cheaper than dirty energy. Solar costs have gone down by an average of 3.5% per year from 1998 to 2007 in real dollars.
- New tax credit. Before 2009, U.S. the tax credit for installing solar was limited to $2000. But now there is no limit. The credit is good for 30% of the system cost, after rebates. This tax credit is more powerful than a tax deduction. A deduction simply reduces your taxable income, while the credit reduces your tax bill directly. In plain English, a $10,000 tax credit reduces your taxes by $10,000. A tax deduction reduces it by only $1500 to $3500, depending on which tax bracket you’re in.
- State & Local rebates. Rebates for installing solar have been around for a while, but only recently has the cash back been significant — enough to often make it solar a good deal as well as a good environmental choice. A $3 billion plan in California unveiled in 2005 aims to put 3,000 megawatts of solar energy on 1 million homes, businesses and public buildings over 11 years. And in Austin the rebate from the city for homeowners who go solar is $4.50 per watt. Systems generally cost $6-10/watt to install, so the rebate covers 45%-75% of the system cost. For a small 1 kWp system on the low end, that’s $6000, less the $4500 rebate, for a net cost to the consumer of $1500. And remember, even after rebates you still get a 30% tax credit.
- Rental Programs. At least three different companies offer rental programs which let you rent the panels for a fraction of the cost of buying the system outright. Another attractive benefit of rental programs is that you’re not responsible for maintenance. If something breaks, the company fixes it for free and you don’t have to worry about it. http://michaelbluejay.com
So, now there is no excuse why Solar Panels shouldn’t be in your future plans….I know they are in mine..!
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Good job!