Residential Solar is a booming industry; not just because of the new green jobs produced daily, the positive impact it has for the environment or even the energy it saves. The solar power industry is huge right now partially because of the incentives it receives from federal, state and local governments that help make solar panel pricing cheaper for homeowners who wish to own a solar system.
Currently, the Federal Residential Renewable Energy Tax Credit is 30% of qualified expenses for a solar panel or solar energy system installed at your home if you decide to purchase a solar system. This is ensured through the end of 2019, after which it will begin to decrease incrementally. In 2021, the rebate will be locked at 10%.
Each state and county is different, but the majority offer solar incentives so if you choose to own a solar system, that will further reduce the cost of installation and make it super simple for you to earn money from your solar panel system.
However, anything could happen these days. All the tax credits and rebates could be revoked by executive order. Or the majority in congress could decide to amend the current law to remove these incentives and this could then be signed by our President and become law. That would mean that those who are not currently solar powered but who are considering purchasing a solar system would have to pay more out of pocket to go solar. In the current political climate we just don’t know what will happen from day to day.
The good news is that more than 35 million Americans have made the switch to solar power at a rate cheaper than the grid and eventually no incentives will be necessary to help the industry grow.
However, if you have been considering purchasing a home solar system there has never been a better time for you to make the switch to solar because for the moment, tax credits are still in effect.
There are two ways you can go solar for $0 Down right now:
1- Ownership: This is where all those tax breaks come in to play. Solar Energy World offers a financing option where you can purchase a solar system for $0 down. Plus the cost for equipment has gone down dramatically in recent years, and as noted above there are also many tax breaks, electricity buy-back programs, and incentives available to those who wish to own their solar system that end up reducing purchase price by 30-50%. With all of our purchase options your monthly loan payment COMBINED with your new post-solar utility bill can be lower than what you paid to your utility alone prior to going solar. When you own your solar system you can also earn revenue from the electricity your system produces through net metering and SRECs which is why ROI from purchase is so high.
2- Power Purchase Agreement: Solar Energy World also offers the RateGuardian(TM) PPA that allows you to pay $0 for solar system and installation to lock in a lower electricity rate than your utility. Homeowners typically pay 20-30% less for electricity costs once their system is installed. All tax breaks, SRECS and incentives written about in this article do not go directly to the homeowner, because the homeowner does not own the system. Instead those incentives go to the solar company. However all those incentives are what make PPAs possible. Some call the PPA the “no-brainer” option because homeowners literally pay nothing to start saving on their utility bills as soon as their system is turned on.
If either of these options interest you, fill out our Free Solar Analysis form on this page and we’ll contact you to let you know if you are eligible for solar.
MORE READING ON SOLAR AND TAX CREDITS: Does Solar Really Need Taxpayer Money?