We see you, penny-pincher. And honestly, you’re logical to be thinking ahead about saving more for your wallet. But we’d like to make a few points on the flipside, while you wait.
Hypothetically speaking: if solar panel prices did drop in the years ahead, they won’t drop low enough to make up for the money you’ll lose by continuing to pay that high electricity bill every month. Compare solar energy costs with how much you’ll be paying in electricity when not making the switch. The longer you wait, the more you’re spending on an incremental scale. While taking the financial plunge to invest in solar panels now may seem like a risky move, it’s worth it in the long run when you look closely.
So, let’s have a look at the numbers.
Over the last decade, electricity prices increased by 2.2% per year in the U.S. In 2016, the average home energy bill was $112.59 per month, which is an estimated $1,350 annually. If you wanted to install solar panels that created enough energy to cancel this bill, you’d be saving $1,350, only in the first year. Consider a 2.2% increase yearly, and savings in the second year will grow to $1,380 and reach $1,500 in annual financial savings in -5 years. Now that’s energy efficient.
- You think that prices will continue to drop, but will they? Let’s look at it under a microscope.
In January, Trump made the decision to place tariffs on solar panels from countries like China. This drastically impacts the price at which solar panels will increase per year, starting at 30 percent and incrementally increasing 15% over every four years. While the first 2.5 GW of panels are not subject to the increase, it can affect how affordable panels will be in the future and should act as an incentive for you to invest in solar panels, now.
- The value of your home increases exponentially when you invest in buying solar panels. So not only will you be slowly paying off for the panels as your electricity bill diminishes, but also you’ll get a giant pay-off if you ever decide to move out. The money is there - but just not in plain sight, that is, if you’re looking for someone to hand you a check.
There are enormous tax benefits you can be a part of by investing in solar energy. By waiting in the hopes that prices will drop, you are subjecting yourself to the possibility of these tax laws being undone. Some of the financial benefits include the Federal solar tax credit - (ITC), for residential and commercial properties - which allows you to subtract 30% of your solar panel installment from your federal taxes. Google your state and find out what other benefits your property might be eligible. It’s worth the research.
We think, no. But there are obviously plenty of understandable reasons for waiting that can be individual and personal to your finances, your family, or your future plans. At the end of the day, powering your home with solar energy is always an ecofriendly and financially smart choice for your future, regardless of when you decide to take the step.