Most of us know at least some benefits of solar power. For starters, they’re great for the environment. They can also increase your home’s value and help you save money on your electric bill. But for many people, the idea of moving forward with a home solar panel system may seem daunting. What about the cost? Are there options for financing solar panels?
You may think you can’t afford solar. But here’s an alternative perspective: you can’t afford NOT to explore your options with solar.
Utility companies have consistently raised electricity prices by about 3% per year over the past decade. This trend isn’t likely to reverse any time soon. By depending on your utility company for electricity production, you’re locked into their prices – whether you like it or not.
But having your own solar power system is different.
Your Return on Investment (ROI)
No, solar panels are not free. Yes, they require a fixed cost up front. But you will see a return on that investment. By locking in your electricity costs for good, your solar energy system will drive down or eliminate your electric bill, paying for itself over time. You’ll never be subject to your electricity provider’s rising costs again.
Typically, the Return on Investment (ROI) for a solar power system is about 8-10 years. After those 8-10 years pass, you will have totally offset the cost of your installation with 8-10 years’ worth of lower – or completely eliminated – electric bills. From that point forward, any money you save goes straight into your pockets.
Luckily, solar panels last much longer than 8-10 years. In fact, most of them come with a 25-year warranty. According to EnergyInformative, many of the new solar systems being installed today are expected to continuously produce renewable energy for the next 30-40 years.
In Kansas City, the average customer saves an average of $1,535 per year by switching to solar. And don’t forget that a solar panel system increases your home’s value, similar to having a renovated kitchen or a finished basement.
After your initial investment, the potential for a strong return is nearly endless.
Making the Investment
Even if you’re sold on the idea of solar energy, you may still have concerns about the initial investment. The good news is that there are many options available, from solar companies to government incentives, for financing solar panels and helping to offset the costs.
KC Solar’s 0% Down Solar Loans
If you can qualify for a loan – and we have several options, even for low credit scores – then you don’t need the money. Our systems are always $0 down. Though if you’re going to pay cash, we do ask for a small fee up front to cover the initial expenses, just in case you back out before we’re done.
We design the systems in a way that ensures you won’t be spending more than the cost of your current monthly payments on your electric bill. If you spend $200 a month on your electric bill, you won’t be spending more than that with one of our solar arrays.
Contact us to find out more about 0% Down Solar Loans with KC Solar.
Federal Tax Credits
Apart from solar loans, there are other options for financing your solar panels – such as tax credits. Regardless of which state you live in, everybody qualifies for the Federal Income Tax Credit, as long as you’re a U.S. taxpayer.
Also known as the Investment Tax Credit (ITC), this tax credit gives new solar installers 26% back of the cost spent on their system in 2020. So, how does it work?
Here’s an example. If your solar array cost you $10,000, you would get $2,600 back from the government when you file your taxes the following year. If you happen to owe the IRS $2,600 in taxes, you would then owe $0.
If it cost you more, you would save more; if it cost you less, you would save less. If you owe less than the amount of your tax credit, then you’d roll over that remaining credit into following tax years, as long as the tax credit is still in effect.
The tax credit percentage will be lower after 2020, so install your solar system earlier to receive the most financial benefits.
Missouri Solar Rebates
You may be eligible for additional help with financing your solar panels. Many states offer government rebates for solar customers. Solar rebates are one-time payments that help finance the installation of solar panels and can help decrease the amount of time needed to see the ROI.
Kansas doesn’t currently offer any state-specific rebates. However, Missouri does – in 2018, Missouri passed Senate Bill 564, part of which mandates that electric corporations make solar rebates available for systems that become operational through December 31, 2023.
These rebates apply to new or expanded solar electric systems, limited to up to 25 kilowatts (kW) per system for residential solar customers.
A 25-cent per watt ($0.25/W) rebate is available for solar systems that became operational after June 30, 2019 and new systems that are installed through December 31, 2023.
Learn more from the Missouri Division of Energy and find specific information from your utility company.
Financing Solar Panels Made Easy
Going solar is not only great for energy efficiency, but it can also be a financially rewarding decision. If the cost of solar seems overwhelming, remember that there are plenty of options for financing solar panels. You can make the switch and receive the financial benefits at the same time.
At KC Solar, we’re experts in all things solar – especially here in the Kansas City area. No matter your needs, we’ll find a way to meet them, and we guarantee your satisfaction.
Caption: Find out your options for financing solar panels.