You may have read our previous blog Is Solar Right For Me? In that blog, we provide a lot of information showing why everyone should be looking at solar. Financially, it just makes sense – long term. But, there are some homes where the financial benefits are immediate: Here is a list of considerations, to see if it makes sense for you to get solar NOW.
- You own a house, barn, or garage that has a roof that faces South, that gets sun all day long (no shade trees blocking it)
- Your roof is in good condition and won’t need replacing in the next ten years (metal roofs are fine too)
- You plan on living in this home for at least ten (10) more years
- You have two free slots available in your electric panel
- Your average monthly electric bill is over $110 a month
- Your electric company is either Consumers Energy or DTE
- You have a credit score at least in the mid 600’s
If you meet the above conditions, you can make your own electricity for less than what the electric company charges you monthly, currently. With new financing now available, you save money immediately by going solar. Let me restate that: Your payments for the solar array will be lower NOW than what you are paying the electric company.
To further sweeten the deal, consider the following:
- If you finance this project, you can get started with no money down and no payments until the system is installed and operational
- There is a 30% Federal Tax Credit (if you qualify) which only improves the financial reasons to make the move
- Your payment will never go up, unlike the average electric company bill
- Once you pay off the array, you own it free and clear
- If you do sell your home, the solar equipment will increase the value and help you sell it Faster than a home without solar
- Solar panels have a 25 year production warranty and should last 40 years
- You can retire with energy independence. Over the life of the array, that will save you tens of thousands of dollars.
If you wait to install solar, you run the risk of the following:
- The MPSC just ruled that Net Metering is going to change to Distributed Generation. That means the array will take longer for it to “pay for itself.”
- The 30% tax credit is eventually going away
To recap, if your own a home and it meets the conditions described above, you could be saving money NOW. Your bill will never go up, and the savings is immediate. With electric costs continuing to rise, the price of solar equipment holding steady and new financing plans available, you are spending more than you need to, if you aren’t making your own electricity.
Written by Troy Bracke, May 2018
Troy is a solar professional with Michigan Solar Solutions. He has been in the industry since 2015.