There’s a lot of talk about solar power these days and everywhere you look solar is popping up on rooftops. But, how do you know if solar is a wise choice for you and your home?
Thankfully, the answer is pretty simple: The number one reason people go solar is to save money, so it usually comes down to the question “Can solar save you money right now?” If your average monthly electric bill is over $150, the answer is usually “Yes.”
Solar is everywhere today because you no longer have to buy a system. You can get a solar system for your home with no money down and at a monthly payment that’s less than what you’re already paying for electricity.
The two, common, no-money-down solar programs are, 1) a lease, where you rent the equipment for a monthly payment, and 2) a Power Purchase Agreement (PPA), where you buy the power each month like you do from your utility company. Both plans start saving you money from day one and your savings grows every year. Installation is free, energy production is guaranteed, and monitoring, maintenance, repairs, and insurance are usually included.
A solar lease or PPA typically has a term of 20 years. You usually have the option buy the system after five or seven years. At the end of the term you can choose to renew the lease, buy the system, or have it removed.
If you sell the home, the lease or PPA can be transferred to the new buyer, or the new buyer can buyout the system in escrow. Both are common transactions.
According to the California Public Utilities Commission, electric rates have increased an average of 7.5% per year for the last 30 years. At that rate, a $200 electric bill today will cost around $400 per month in 10 years!
Solar can save hundreds or even thousands of dollars every year while protecting you from rising electric rates in the future.
What would you do with an extra $40,000? That’s how much the average solar electric system saves over 20 years!
Today, over 75% of all solar systems are financed with little or no money down, and only 25% are purchased with cash.
Folks with a little cash can usually double or triple their savings by either purchasing a system or pre-paying a lease in a single payment. Payback generally occurs in 5–10 years, and high quality solar systems are warrantied and guaranteed for 25 years.
Solar increases property value. A analysis by the Lawrence Berkeley National Laboratory of the effects of solar systems on home sale prices in California analyzed 72,000 California homes sold––2,000 of which had solar. The average home with solar sold for $17,000 more than comparable homes without solar, or approximately $5,500 per kilowatt.
Your electric bill arrives every month whether you want it to or not. It’s a sort of hidden debt that comes with the house and lasts as long as you live there. Now you have a choice of where to buy that electricity.
As utility bills hit record highs and continue to climb, and as it becomes more and more important to live sustainably, we recommend keeping a close eye on your electric bill. If your average bill hits $150 or more, you should consider getting solar quotes to see if you can start saving money now.
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