As a solar panel installer, what can you take of this decreasing price of solar panels? Would it do your business good or not-so-good? How can your business adapt to this decreasing price of solar panels (that shows no sign of slowing down anytime soon)?
What Can Solar Panel Installers Do Amidst Decreasing Prices?
Jenniffer Kirsch | Ecotality
The number of homeowners considering solar panels installed on their homes is growing. In fact, 70% of American residents said: “they would support a version of California’s rooftop solar policy being mandated nationwide.” While numbers don’t lie, it’s also incredibly noticeable how not every home in your neighborhood makes use of the technology just yet. The reasons for this could vary, but a large factor is that middle-class Americans simply dismiss the whole construct of solar panels as expensive.
While it isn’t exactly false to say that solar panels can be costly, excluding the financial benefits they bring also isn’t right. When it comes to this particular branch of natural energy, it’s natural for homeowners to have several questions. Fundamentally, however, the costs always top the list. Clearly, financing is an integral component, but one shouldn’t end their considerations with that part only. Anticipated monthly bills, solar energy benefits, and being able to eliminate fossil fuels like gas and coal are should be looked into, too.
What is the complete cost of Solar Panels?
For beginners, let’s start by saying that there are four elemental aspects when putting them up: solar panels, an inverter, a controller, and batteries. Thanks to innovative updates, the economies of scales, and government benefits, solar panel rates are becoming more feasible for more people.
The truth is, costs can differ depending on three main things: where you live, what finance options you consider and are qualified for, and how much electricity your home naturally consumes and produces. Generally, these rates may fall anywhere between $20,000 to double that price. Now, this may be enough for anyone who sees that figure to want to walk away. But be patient. It really is just the sticker price.
Once you take into consideration statewide energy tax credits, company discounts, zero-down financing, and federal tax cuts, you'll likely need to pay for only half that price and complete the payments every month. The savings you can get from these, on top of the actual energy bill reduction you’ll notice, should be enough reason for you to get them. If that isn’t a good enough reason for you, solar panels help develop sustainability, too.
Available loans for solar panel installations
A terrific solar panel financing option is solar loans. Today, there are now banks that offer this loan product. You can choose to finance the complete cost of your solar infrastructure by using a property as collateral, should a financial company require that from you.
Solar financing companies are wonderful alternatives, too. Urban Solar Group, Florida Solar Design Group, Sun-Tec, Fun In The Sun Solar, and ESD Solar are great examples of financing agencies where you can get quotes from. Know that obtaining multiple quotes can help you better decide which package best suits your budget.
Why Solar Loans Are A Good Idea
Firstly, the monthly savings you get from lower electric bills may be higher than the loan payment you need to cover monthly. This already allows you to start saving a ton of money quickly.
Perhaps the most obvious benefit, homeowners may save up to 30% to 70% of electricity bills over the lifetime of their solar infrastructure. Obtaining a loan to better contribute to potential greater savings is a wise idea.
Typically, solar loans have very similar terms and conditions and general structure as other home upgrading loans. A few States even extend below-market interest rates that are paired with subsidized solar loans.
You also automatically become eligible for a federal investment tax credit and other financial incentives. Additionally, many secured solar loans have a tax-deductible interest, so this also already lets you save more on income taxes.
Solar Leases and Power Purchase Agreements
Solar leases and PPAs basically allow you to rent a solar panel system without having to purchase it.
Why Solar Leases and PPAs are a good idea
With a PPA or lease, it is the third-party owner’s (TPO) responsibility to set up the solar panels on your home. You, on the other hand, will be obliged to shell out a below-market rate as payment for the solar electricity for the entire duration of the term.
Choosing either of the two still helps you cut back on your electricity bills. Additionally, you also won’t need to worry about having to pay a hefty upfront figure.
You, however, will not be eligible for all the tax credits, rebates, and other government incentives available to solar panel owners. These perks go to your TPO. Furthermore, at the end of the lease, TPOs may either remove them from your property or sell them to you. They will also be responsible for taking care of all the solar panel maintenance fees, should there be any.
Compare your financing alternatives
Before you decide to take on a financial product, examine every solar financing option you’re qualified for including PPAs and solar leases. Remember that every home in every region demands for various considerations, so be cautious in assessing all your options. Look for sites online that discuss solar panel installation costs and present side-by-side computations and comparisons of packages provided by solar providers.
Benefits of installing solar panels
Environment-Friendly
Compared to other available energy sources, solar energy has the least detestable effects. It doesn’t pollute the water, nor does it produce greenhouse gases. For instance, compared to nuclear power plants, solar energy panels call for very little maintenance water, too. It also doesn’t produce noise, ensuring households aren’t bothered by unwarranted buzzing sounds.
Lower Utility Bills
As mentioned many times in this article, making use of your own electricity translates to not needing as much from your electricity provider. This automatically means you get to cut back on the amount of money you would have spent on your electricity bills. It also helps that it’s possible to sell unused electricity back to the grid.
Solar Energy Can Be Used Wherever You Are
You can be in the ocean and the sun will still hover at your space. As long as sunshine is penetrative, solar energy can be made use of anywhere. This is specifically helpful for distant regions that have limited means to gain mainstream sources of electricity. Note that there are plenty of people in the world who don’t have electricity. Solar energy doesn’t just benefit us naturally, it also helps us socioculturally.
That being said, solar energy can help us not just power our homes, but also boats and even spacecrafts. At the end of the day, although through different means, solar energy empowers us all.
The content & opinions in this article are the author’s and do not necessarily represent the views of AltEnergyMag
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