Today’s Solar Economics—Your System Pays for Itself the Day its Installed!
Today, with Government incentives, the cost of Solar has come down to around $.12/kWh and even less in some cases, a 98% drop in the last 25 years! What this means for you is that you’ll be guaranteeing yourself an electrical rate of $.12/kWh or less for the next 30 years, over which time we all know electrical rates from the utilities will be sharply increasing.
What do these lower prices and governmental incentives mean for the average homeowner? We are frequently seeing 15% annual returns on investments (ROI) – far better than the stock market, bond market, money markets, and long-term CDs.
According to the National Appraisal Institute (Appraisal Journal – Oct. 1999), your home’s value increases $20 for every $1 of energy reduction in annual utility bills. This means a system installed that saves you 3000 dollars in annual utility bills adds 60,000 dollars worth of value to your home.
State and Federal Incentives
Many states have enacted rebate positions on the systems that are installed in their states, these rebates vary from state to state, and many have supplemental state tax credits. In California a recent 30% federal tax credit with a residential cap of $2,000 was put in place and for commercial projects there is no business tax cap and the “MACRS” five-year accelerated depreciation schedule is also applicable. For businesses, we have often seen paybacks as low as three years and internal rates of return in excess of 25%.
Net metering laws (38 states have them now) mandate that your utility company cannot charge you more for your electricity than they pay you for the solar power you generate. The physics of solar power are such that it is the perfect energy source - it puts the most power out in mid-afternoon, which is exactly when utilities have the greatest demand due to summer air conditioning.
In order to decrease its summer mid-afternoon power load, the utilities have instituted "Time of Use" metering, to encourage homeowners to conserve in the afternoon. This is great news for solar system owners! "Time of Use" is an excellent choice for PV systems that meet a minimum of 40% of your electrical needs.
This means you can sell your solar power to the utility between noon and 6pm for as much as $0.29/kWh, and then you can buy that same power back at a rate as low as $0.09/kWh. This gives you huge financial benefit in the long run and also reduces the initial size of your solar system, and consequently your ultimate payback time.
Your Property Tax Won’t Go Up
New Laws prohibit county property tax authorities (tax assessors) from increasing your tax assessment from value increases due to your installation of a solar system. This is great news for your cash flow, as you’ll be saving hundreds or even thousands of dollars every year from your new solar system, increasing your property’s resale value by $17,520 due to your utility bill savings, and not adding even one penny in property tax!
Financing Your Solar System
According to many financial experts, financing your solar electric system, even when you can pay for it, is one of the best investments you can make. There are now in the market place financial industry leaders who can and will be happy to finance your system for you. With the right off available when financing it sometimes makes more sense (better ROI) to borrow the money.
Call SEE Systems
or 760- 403-6810 and ask for a FREE Energy Analysis of your propery.