There Will Never Be a Better Time To Go Solar
There Will Never Be a Better Time To Go Solar then in 2020. Solar panel and Inverter technology is high efficiency, The cost is lower, 26% Federal tax credit and low interest loans. The landscape for home solar in 2020 will never offer a better opportunity for homeowners.
Since homeowners are already paying that money to power companies and never own anything, solar is a sound investment.The most important thing is don’t overpay for a home solar system because that’s the only way you can lose with solar.
High Quality Panels & Inverters
Solar panels and inverters in 2020 are more productive per square foot of roof space in 2020. The cost of the panels is about the same but with improved production, the ROI is better. We all want cleaner energy but we don’t want a liability to achieve it. In 2020 it’s truly the best of three worlds, because of higher efficiency solar at a lower cost, low-interest loans, and the Federal ITC Tax Credit all at the same time. (Always consult a tax expert to see if you qualify for the Federal Tax Credit)
Although there will be advancements in the area of solar panels, it will be relatively slow. The primary focus in 2020 and beyond is on battery back-up systems.
There is very little payoff for a company to try and advance solar panel technology because they’re already advanced technology. The complete opposite is true with batteries, there’s tremendous potential for advancement.
A very important thing to know about solar panels is they are designed to last well in excess of 25 years. High efficiency combined with longevity equals profitable home solar.
You can find comfort in the fact that finance companies wouldn’t be financing solar for 20 years if the equipment is inefficient in any way. That’s one of the reasons why there will never be a better time to go solar.
Financing Is Cheaper Than Ever
Although it is not recommended to finance solar for 20 years, most of the solar companies push 20-year financing. The reason solar companies offer 20-year financing is that they are selling a payment. The longer the term the lower the monthly payment will be.
The lender makes their money with low-interest long term loans. They have agreements with the retail sellers to use their specialty financing. Fun fact, any loan at 5% interest over a 20-year term doubles the cost of a solar system.
The finance companies charge points for these low-interest loans and the solar company hides that from the customer. Most of the solar companies don’t want you to know but they pay an average of $2500 in points per loan. The reason the solar company doesn’t want you to know is that your the one paying it in the end.
So be aware if you approach your average lender they will not finance solar. The main reason is they have no expertise in a relatively new industry. That shouldn’t matter because the people that qualify for a twenty-year loan have good credit and income. With good credit and income you have a multitude of choices when it comes to creative financing for your solar system. Another reason why there will never be a better time to go solar.
When You Pay Cash for Home Solar It Becomes The Perfect Investment
Anyone that goes solar should pay it off ASAP simply because the ROI is better. Solar is almost a guaranteed investment if you buy it right, so there is no gamble in paying it off early. A home solar system has a built in guaranteed monthly dividend.
So what your power bill is $150 a month, it doesn’t mean you can’t handle $500 a month for five years and pay it off. The second it’s paid off you are receiving a monthly dividend of $150 because you no longer pay that to the power company. The potential savings over a 25 year period is sizeable.
The Chart Below Demonstrates The average Monthly Power Usage Cost Over a 25 Year Period. Power Company Increases are Calculated In To Achieve a Monthly Average Over 25 Years.
This Example is based on an average 7K system
Average Monthly Power Bill
x 12 Months
25 Years X 1800
10% Total Increase Over 25 Years
Total 25 Year Power Cost Estimate
Average Power Costs Monthly for 25 Years
$150 A Month
$1800 A Year
$165 A Month Average Power Costs
The 26% Federal ITC Tax Credit In 2020 and 22% In 2021 Is A Real Savings and Is Going Going Gone
The federal government will pay up to 26% of the cost of a solar system for those who qualify. How do you qualify? It’s a tax credit deducted from your income taxes if you pay taxes in that amount or more. The Investment Tax Credit (ITC)
If you have a tax credit of $5000 and your income taxes are $5000 your taxes will be zero. If you prepaid that $5000 in taxes you will get a refund of $5000. The tax credit is really something that should be discussed with whoever prepares your taxes because it’s a big difference In how much solar will cost.
Using the above example if you paid anywhere from $18,000 to $24,000 for that system you know your return on investment is at least $25,000 over 25 years. Considering your giving that money to the power company anyway, it makes solar a free investment. The best reason why there will never be a better time to go solar is you get a quarter of the cost paid for you, if you qualify.
There Will Never Be a Better Time To Go Solar Because of The Tax Credit Combined with a High Efficiency Solar System and Excellent Low Interest Financing Opportunities
For home solar in 2020 all the stars have aligned when combining the three primary reasons why there will never be a better time to go solar.
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Every single home no matter what size it is use a different amount of electricity, based on the efficiency of that home. The average monthly Kilowatt-hours used (on your power bill) is the main figure needed to determine what size system you need to off-set your power bill.