According to the Department of Energy (NREL), the average cost for a 5kW residential solar installation is more than $16,000. This national estimate is even higher in California due to our state’s more expensive installation and labor costs.
Either way, going solar can be a hefty investment for many homeowners. They want the benefits that installing solar panels can deliver. But they lack the upfront money required to receive:
- Monthly electricity bill savings (i.e. cheaper power).
- Massive environmental savings (i.e. carbon offsets).
If you’re also on a tight budget, you may have your own doubts as well. Does it really make sense to shell out thousands of dollars to receive these benefits?
The short answer is “YES.” Even in an expensive state like California, going solar is worth the investment.
Let’s explore why that is.
Why Solar Panels Are Always a Good Investment
The main reason homeowners go solar is to reduce the amount of money they pay to their local utility companies. With solar panels installed, you’re able to generate your own clean power, entirely from free sunshine.
As a result, you don’t have to spend as much on expensive electricity.
Because of these monthly savings, your solar panels are guaranteed to eventually pay for themselves. This is particularly true in a market like California that has:
- Abundant, year-round sunshine.
- Relatively high electricity prices.
If your solar savings amount to $100 a month, for example, it would take about 13.5 years for your $16,000 solar installation to break even.
And that’s assuming utility rates stay constant over that period.
But, they won’t.
Nationwide, electricity prices are on an upward trend. So your monthly savings will actually increase with time, resulting in an even shorter payback period.
That’s also assuming you pay the full $16,000+ ticket price for your solar panels.
But, you won’t.
- Most residential solar installations qualify for the Federal Investment Tax Credit – a 30% credit on your taxes in the following year (parts and labor included).
- In addition, California has a generous net energy metering (NEM) program. This incentive allows you to sell unused solar electricity to your utility company in exchange for credit.
If you use either (or both) of these incentives, the payback period of your solar investment becomes much shorter.
But it gets even better.
You Can Go Solar for $0 Down
It’s possible to receive a brand-new solar installation without paying any upfront expenses.
In fact, there are 2 different approaches you can use.
1. Solar Power Purchase Agreement (PPA)
With a Solar Power Purchase Agreement, you pay $0 upfront to have panels installed on your home. You only pay for the electricity these solar panels generate every month.
This is a very attractive option for homeowners on a limited budget. Just know that you’ll never officially “break even” with a power purchase agreement. Instead, you’re simply buying electricity from a cheaper and cleaner energy source – i.e. the sun.
2. Solar Loans
The other approach is to take out a low-interest solar loan. Again, you pay $0 upfront to get started. In this case, you use the money received to cover the full cost of your PV installation.
Thereafter, you pay down the loan balance using your monthly electricity bill savings. With incredibly low interest rates ranging from 2.99% (for 15-year loans) to 3.99% (for 20-year loans), you’ll still have extra money left over every month.
So even though you’ve technically gone into debt, it is still cash flow positive as you’re not pay anything out-of-pocket to receive these solar benefits.
How We Guarantee Your Solar Investment
At Bright Planet Consulting, we carefully design our solar installations to deliver payback periods of 8 years or less – 100% guaranteed.
There are never any surprises and the breakeven point of your solar investment is set in stone.
In addition, we can also help you:
- Qualify for affordable solar financing – whether you want to use cash, a loan, or PPA.
- Apply for relevant solar incentives to help drive down the total cost of your installation.
And for qualifying PV systems, we’ll even throw in a free electrical panel upgrade. ($3,300 value)
The question isn’t whether you can afford to go solar. It’s whether you can you afford NOT to.
Ready to Go Solar with Bright Planet Consulting?
If you live in California and want to learn more about our approach to affordable solar solutions, contact us today for a free consultation.