Home Sweet Home is presented by The Washington State Housing Finance Commission
Environmental altruism and the realization of long-term savings are the two main reasons to switch to solar energy. Relying on the sun rather than unsustainable sources reduces your carbon footprint and is better for the environment. Reductions in your energy bill provide personal savings over the system’s lifespan.
Sourcing fossil fuels is expensive and has dire environmental consequences. The burning of fossil fuels emits greenhouse gasses that contribute to climate change leading to extreme weather and sea level rises. Fossil fuels also pollute the air, which harms the environment and has human health risks such as increased asthma and higher cancer rates. Oil spills can devastate oceans and harm or kill local animals while being extremely expensive and difficult to clean up. The sun, on the other hand, is free, easily accessible, and clean.
For homeowners, the financial benefits of going solar include lower energy bills, energy cost stability, and the opportunity to sell back excess energy to the grid. The local cost of electricity and the size of your panels can determine the savings your system produces. How Much do Solar Panels Save? provides a chart with average savings by state.
There are other long-term gains in areas where installed solar power increases the home value. Solar power also provides backup energy during outages preventing loss of refrigerated food and allowing life to operate as usual.
Why Now?
Solar panel and installation prices have gone down 80% in the last ten years, making the return on investment a faster process than in the past. Plus, many companies offer flexible financing options.
Federal tax credits provided through the ITC give a 22-26% tax credit depending on the year of installation. This credit is due to expire in 2024 unless extended by Congress. Find out what local subsidies and rebates may be available in your area.
Is Solar Right for You?
There are several requirements and considerations in deciding whether solar power suits your home. You must own your home, and the roof should have ample sun exposure, ideally southern and unblocked by trees. Then, use one of the calculation formulas or online calculators to find out how long it will take to pay off your initial investment of installing the panels, which ranges from $3,000 to $16,000.
The levelized cost of electricity (LCOE), is used to calculate the time frame for return on investment by dividing the lifetime costs of owning solar power by the lifetime energy output. Those lifetime costs include the initial installation cost, cleaning, maintenance, and other expected upkeep. The Energy Sage calculator uses Google data to analyze the home’s roof, review current electric bills, and incorporate local incentives. Then this Incubator awardee provides comparison shopping and connection to prescreened installers.
How to Select A Solar Company
Selecting a reputable installation company is vital in making the switch to solar. Research should include reading reviews and finding out about current certifications and warranty programs. Discovering how the company handles the permitting process, particularly if you live in a neighborhood with a homeowner’s association, is also critical. Understanding the types of solar panels available and the best brands on the market can also be helpful.
While vetting companies, you should ask how long the installation will take, what guarantees they provide, and the average lifespan of their panels. The best companies may be the local ones. Smaller, family-owned, local businesses often offer better customer service and are more involved in their community.
Financing and Rebates
A Homeowner’s Guide to Solar Financing shares that financing is typically offered through the solar company or obtained through traditional financing options such as your bank. Solar leases may also be available where the homeowner makes monthly payments but does not own the panels. If considering a lease, check what maintenance is included and for escalating payments. With a Solar Power Purchase Agreements (PPAs), a solar financing company buys, installs, and maintains ownership of the system and enters into a contract with the owner to pay a set rate. These agreements are not available in every state.
Search for state and other local incentives and rebates. Other options to save money are entering into solar cooperatives where individuals and businesses join together to receive bulk rates. Community solar projects provide a way for renters or homeowners without a suitable roof to access solar power through a nearby solar source.
Deciding to go solar takes research, planning, and upfront investment. The results of saving money and doing your part to protect the environment are well worth it when you select a reputable company and utilize all the available incentives!
Home Sweet Home is brought to you by the Washington State Housing Finance Commission’s Washington Homeowner Assistance Fund. The Homeowners Assistance Fund helps homeowners who have fallen on hard times because of the pandemic. Call 1-877-894-4663 for more information on how they can help.
