There are a lot of ways to pay for a new solar system installation and maintenance. This article will talk about the pros and cons of different ways to get these solar panels installed for your homes or business.
Paying for the Installation and Solar Panel Equipment Yourself
A decade ago, only a few people can afford to pay for their installations outright. The cost of solar panels was too expensive and the benefits were not really that good. The manufacturers of solar panels are constantly trying to make the technology better by making the energy efficiency much higher than before so people can really save money. In the last 5 years, the cost of solar panels has gone down by 80 % because of increased competition. This made the technology more affordable for millions of people around the world.
There are incentive programs offered to people who are interested to switch to solar energy. Some popular programs are as follows:
- Net metering – The utility company will credit your account for the clean energy that your solar panels generate into your electricity meter.
- Feed-in tariffs – The utility company will pay you an amount for the clean energy that your solar panels generate.
- Tax credits – You can subtract the cost of installation of your solar panels from your taxes.
- Solar rebates – You will get cashback for the investment that you made with solar energy from the government.
- State renewable energy credits (SRECs) –You installation will generate credits that you can trade, buy or sell in the market.
The pros of this kind of ownership is that you will get 100 % of the cash that your system generates. You also receive incentives that will give you a positive cash flow. The downside of this is that you have to pay for the installation and equipment as well as the maintenance. The question “how much does a solar panel cost?” has always been asked by those who want to switch to clean energy.The cost of these systems is still expensive for the average worker. There are also some electric companies that might not give you the best deal when it comes to the electricity that you generate.
Solar Leasing
This agreement as well as solar leases is new to the options to those who want to have solar systems installed on their houses. This is when a third party covers the installation of your solar panels and will charge you for the clean energy that the panels generate. The rate is relatively cheaper than the bills that you are currently paying for with your local company and the rate is on lock down for a certain period.
The benefit of this kind of lease is that do not pay anything for installation and maintenance because the 3rd party company will handle all expense and it will work like a lease. The downside is that you do not receive any of the incentives that ownership gives you. All credits and other rebates will go to the 3rd party company and you do not own the equipment.