Saving Money on a Home Solar Energy System
If you’ve looked into adding solar power to your home you may have experienced some sticker-shock at the prices and expenses. However, you shouldn’t be discouraged. The initial investment can be made back many times in the long run.
There are many benefits to equipping your home with a solar energy system. You can become free from the constant rising prices of utilities and the unstable energy markets. You essentially become your own utility company. You’re able to generate your own power at a fraction of the cost of what the electric company is charging you, but the best part is that you don’t have to pay anyone. As local utility rates increase, your savings will increase, too. You will actually be thrilled to hear of utility rate increases!
If you weren’t already happy enough, consider the savings and rebates available to you through state-funded rebate programs and tax credits. There are many programs that will reimburse you for the cost of your equipment and installation.
Another point of savings is in the energy you could sell back to the utility company. Some meters are designed to spin backwards, actually sending excess energy back to the grid. This process of selling unused electricity is called “Net Metering.” Depending on the policies of your electric provider, you could either get a credit on your electric bill or a year-end check. This option is becoming increasingly common as the laws have followed the technology.
In 2005 the Energy Policy Act was enacted. All public utilities are now required to make net metering available to any customer who requests it. The only difference is the form of the actual credit. Each utility will have their own way of applying the credit. States may also have differing ways of maintaining the interconnection equipment between a home generator and the utility company’s equipment. The expense and learning curve may be deal-breakers for some.
Lastly, there are Federal programs that assist with the initial purchase of the equipment. Some credits apply to the entire solar power setup while others only cover the cost of the panels. Even these may be limited to the first $50,000. Whichever program you choose, please read the rebate/credit information before you make your purchase!
There are also Federal programs that offer assistance in making the initial purchase. Some are specific to solar setups while others apply to renewable energy systems as a whole. Other Federal incentives cover the rebates or tax credits after the purchase has been made.
Financial incentives are available, including tax credits and deductions. Bonds, loans, grants can also mke a solar system more affordable and within the reach of more homeowners. Even some utility companies provide their customers with solar equipment (panels, inverters, batteries) at a wholesale price.
If you are a commercial, industrial or non-profit entity you’ll want to scrutinize any rebate program before you buy. Some programs are available only to homeowners, not to commercial customers.
For up-to-date information about solar incentives visit the Database of State Incentives for Renewables and Efficiency (DSIRE). You can search programs by state, type or eligibility.
It’s almost certain that your state offers some sort of financial incentive program. Regardless of the program they offer, it is essential that you do the research on systems before you make a purchase. There many be specific steps you must follow – in order – before you can apply for your rebate.
So you see that there are many ways to mitigate the impact of a solar system on your checkbook. Many people mistakenly believe that a home solar energy system is too expensive, when, after a rebate or tax credit, it’s actually very economical.
