Are you worried about high energy bills and the effects of climate change? Solar energy could be the answer.
Then here’s some good news for you: Since 2010, the cost of solar energy has dropped by a whopping 70 percent and continues to drop due to fact that the production of solar modules worldwide grows every year.
As a result, more than 10 million Americans have so far installed solar panels at home or to power their business, and you could be one of them.
You’re probably thinking: What’s the rush here? Given the current trend, the cost of installation will drop further in the coming years. So by waiting, you can save money, right? …not necessarily.
Now is the time to switch to solar, and here’s why
Energy Bills Keep Rising
According to the United States Department of Energy (DOE), the average American household paid an average of $113 a month on electricity in 2016.
What’s more, energy prices have been rising by 2.2 percent a year in the last decade.
Considering this rise in prices, your energy bill in 2019 could be about $120 a month or $1440 a year.
With that in mind, let’s assume you wait three more years to switch to solar.
After the third year, you will have paid approximately $4,000 on electricity bills at the current rates.
Factor in the 2.2 percent annual rise in prices and this figure jumps to $4,500.
Now consider the alternative: According to Sandbar Solar, a solar PV (photovoltaic) system cuts down your bill by 100 percent and repays for itself in the first 5 years of use.
Price of Solar Panels May Rise, Not Drop
In the late 70’s, the price of solar power was very high (more than $75 per watt).
The price of solar could rise
However, by 2017, it had dropped to about $0.2 for the same 1 W (watt) of solar energy.
As a result, solar PV panels are now cheaper than they have ever been, but not for long.
The government recently announced plans to impose tariffs on imported panels, which can increase the price of solar PV panels for the end user.
If the government’s plan to impose tariffs on imported solar PV panels goes through, the price of solar will certainly rise.
Solar Tax Cuts Set to Reduce
In 2006, the federal government started refunding 30 percent of all money used in residential and commercial installations.
Known as the Investment Tax Credit (ITC), the governmental program had a twofold purpose – to make more homes and businesses use solar power, and help the growth of the solar sector in the country.
By 2015, it had achieved both aims.
Due to this governmental help given to the renewable energy sector, millions of U.S. homes got solar power at a lower price, and the solar industry also grown by more than 1,000 percent.
As a result, the government considered the ITC’s work as done, and the legislation was soon passed to phase out the tax cut slowly, starting in 2019, which means that you need to act as quick as possible.
After 2019, the incentives will decrease, so act now to benefit from the incentives and tax cuts provided by federal and local governments when installing a new solar PV system.
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Hi, Thanks for your great article.
As a solar panels expert, I think that the most important thing is that solar energy is a truly renewable energy source.
It can be harnessed in all areas of the world and is available during the day. We cannot run out of solar energy, unlike some of the other sources of energy.
Solar energy will be accessible as long as we have the sun, therefore sunlight will be available to us for at least 5 billion years when according to scientists the sun is going to die.
If someone lives in an area with high energy rates and a suitable solar rating and can afford the initial investment, it’s worth installing in your home while the 30% tax break is in place for the good of the environment and your wallet. But don’t expect to eliminate your power bill overnight, only reduce it.