There are many reasons people look at solar and think “well maybe next year”. The continual decline in the cost of solar panels is one of the biggest reasons that consumers can use to justify the wait. While that is a valid, sound reason, there are changes coming in the next few years that you should be aware of. In 2019, the Investment Tax Credit (ITC), or Solar Tax Credit, is available to residential consumers of solar power at up to 30%. Over the next two years that drops to 26, and then 22 percent respectively, before completely disappearing in 2022.
In an industry-wide report put out by EnergySage.com, the cost of solar price-per-watt was estimated out based on historical data. Using that and comparing the costs from this year’s projections versus 2020’s estimates with the drop in ITC, the pricing stays consistent from year to year. Another way of understanding how that affects you as the consumer, it would equate to an approximate $1000 increase in price from now to next year.
If we look at that against a payback period model from the same report, which stated that the repayment period for your initial solar investment in Florida averaged 9.3 years in H2 of 2018, the only thing you’re doing by waiting is prolonging the period of time before you break even on your solar investment.
Another angle to consider in that same vein is what is called “Percentage of Usage Offset”, which measures how much of your electric bill will be covered by your solar installation. While many factors will determine what this is for you and your wants/needs and what space is available for installation, The average percentage offset for Florida increased 12.2% last year from H1 (86%) to H2 (96.5%). What that means is if you have a $100 monthly electric bill (don’t we all wish!), and it is replaced by a solar array at that average, your bill drops to $3.50.
Every month you wait, you’re paying your entire electric bill. Every month you wait is another month later before your solar is paid off. And every month you wait is one month closer to losing the incentive that the federal government has set up to help you get solar now!
Please, if you have the urge or curiosity about going solar, contact the Solar Professionals by selecting “BOOK A MEETING” or “TAKE ACTION” and “Request a Quote”. Now is the time!