Going solar can help you save money
How much money you will save is a function of several factors:
- Roof size
- Exposure to the sun (and therefore how much energy your system produces)
- How much energy you consume
- The rates you would have paid if your electricity came from your utility
- Tax credits
When purchasing a solar system, you may be required to make a deposit or down payment for the contractor to begin work. Make sure to discuss your payment terms with your contractor before signing a contract.
Many loans, leases, and Power Purchase Agreements (PPAs) have zero money down options, enabling more homeowners to go solar. However, making a down-payment will bring down the monthly cost. Monthly repayments may even be less than the cost of the current electric bill, so it’s possible that savings could begin immediately.
Long term costs
Solar systems usually require minimal maintenance over a 25+ year lifespan, and extended warranties help protect homeowners further. Be sure to ask your contractor what warranties are associated with your solar equiment.
To understand if solar panels are covered under your homeowner’s policy, talk to your insurance agent and review your policy coverage.
Offsetting the cost of your solar system
Let’s say your electric bill is typical for an average U.S. home: about $1,200 each year. And let’s assume your solar system produces 100% of the electric power you need. That’s $1200 saved in the first year and each year in the future – money that can be used to offset the monthly payment associated with the financing option you select for your solar system.
Even with the remaining $15-$20 monthly utility fee for grid connection, your solar system should still result in money you’ll have to help finance your solar system.