Solar is one of the most popular sources of renewable energy for residential and commercial premises. In the past, its high initial investment has been a deterrent for homeowners and entrepreneurs, but today, there are attractive incentives and comprehensive solar financing programs from Federal and State Agencies. Here are some of the ways you can benefit financially from solar.
CSI Rebate Program
Rebates can offer financial relief for homes and businesses looking to install a solar system. The total cost of the Solar Photovoltaic market was projected to be 4.7 billion dollars by 2016. In 2020, the CSI program is planning to spend $2.2 billion to install 3,000 megawatts in the next ten years.
Even though most programs under CSI are no longer accepting applications, you can still get rebates for new constructions. Initiatives such as the Solar Equipments Lists under CSI gives incentives for equipment that meet regulations standards. It may cover inverters, photovoltaic modules, and off-grid storage systems, amongst others.
Commercial Solar Financing
Businesses can take advantage of photovoltaic technologies to cut down costs and embrace renewable energy. Entrepreneurs can obtain solar financing through PACE programs for their commercial establishments.
Under the PACE program, you can defer upfront costs that you’ll repay after the assessment of the new installation. The repayment term can take between 10 and 20 years. Therefore, the business can stabilize its cash flow by extending repayments over a long period.
Solar Investment Tax Credit
Other than solar financing, you can take advantage of 30% federal tax credits on photovoltaic systems. It covers labor costs, as well as inspection and development expenses. The tax credit also includes other aspects of the installation, such as wiring, storage cells, and inverters.
The tax credit will reduce from 30% to 26% in 2020. It will decrease further in 2021 to 22%, and the program may end in 2022 unless congress renews it.
The cost of electricity in the US is always going up. In 2020, the price per kilowatt-hour rose by 0.4% from the previous year. A solar installation is a wise step towards reducing and even eliminate your utility bills.
Your utility company will calculate your net power generation and usage. Your provider can evaluate your needs to determine the best solar system for your home or business.
You can also expect to get long term benefits from your solar installation. The lifespan of a photovoltaic panel is approximately 25 to 30 years. What that means is that you can enjoy the benefits of your investments for practically a lifetime.
The most reputable solar company will offer a warranty of between 20 to 30 years. The system may continue to work for decades if you maintain it regularly. Fortunately, solar systems do not require a lot of routine maintenance.
Homeowners can derive a lot of value by installing photovoltaic systems. There are tax rebates, savings, and solar financing initiatives that can cut costs and minimize risks for investors. To make the most of your investment, you can consult Sonoma solar advisors to assist you to optimize your system’s performance.