Truth About Solar Savings

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Solar Savings

You may have seen tons of ads online offering, “Free Solar”, “Never Pay for Electricity Again”, “Government Paid Solar”, “Get $2,500 Cash Plus Free Solar”, “Government Programs for No Money Down Solar”, “Power Company Will Pay You”… or any other similar variations of these.

The truth is all of these are very misleading. Nothing is ever free. The government doesn’t pay you. 

You can save a lot of money by switching to solar and you may even be able to get it with no money out of pocket. Here is the truth behind the claims

Black Panels

"NO MONEY DOWN", "NO MONEY OUT OF POCKET"

This is referring to either financing the system with no money down and applying the tax credit into the loan to cover part of the cost of solar or it is referring to any number of leasing programsWith any of these you will pay monthly for solar. However, this eliminates your normal power bill and is still typically anywhere from 15% to 50% than what you’ve been paying with no money out of pocket. It’s no different than changing your cable provider and getting better, less expensive service for something you’re already paying anyways.

These are great options to save money immediately and not have to wait for a return on investment!

"NEVER PAY FOR " ELECTRICITY AGAIN

This refers to buying the system cash. If you’re going to be in the home for 5 plus years this can be a great option.

If you pay the system off all upfront you essentially have no monthly bill anymore and typically takes about 5yrs to make your return on investment. Anything after that is just extra money in your pocket! Anyone offering less time to make that return is not planning on being in the solar business for very long as they would be operating at a loss.

Keep in mind that the highest rated (tier 1) systems typically last for 25 – 30yrs

Solar Incentives

You may hear about many different types of incentives. Most of what you see in advertisements make it sound like you can get all of them. The reality is that most of the incentives have expired and most of the rest have very stringent qualifications.

 

Solar Credits

When you over produce solar power you send it back to the grid (power company). When you send it back to the grid you get credits for each unit of electricity you send back. For more details look at the NEM page NEM page with your respective utility/power company.

 

Federal Solar Tax Incentive

In 2022 the Inflation Reduction Act was signed by President Biden which includes increasing the Solar Tax Credit to 30%. This is in place until 2033, at which point it will be reduced to 26% with the following year dropping to 22%.

This is a tax credit NOT a rebate. Most people will see this as an increase in the income tax return check. When we meet we can go into more detail as to how this would work for you.

In the rare cases where someone can not take direct advantage of the federal tax credit we can typically still find a way for them to take advantage of it in some capacity.

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