How Much Money Can Solar Panels Save You?
Believe it or not, the climate has never been better for solar power. Not to mention, in Colorado, we receive more than 300 days of sunshine each year. This is great news for Colorado homeowners, especially if you are under the impression that solar power is out of your financial reach. Costs of residential solar electricity systems continue to decrease. In fact, since 2006, the cost of solar has dropped by more than 70 percent. Not to mention, installing a solar panel system will allow you to be eligible for a 30 percent federal tax credit. Below are some tips on how to save money with solar.
Perhaps the most popular topic that is spoken about is net metering. Net metering is a billing system that allows residential solar systems to feed the excess energy that they produce back into the grid. When the system does not produce enough power to serve the needs of the home, the home can then pull from the grid. Net metering keeps track of what is used and what is fed into the grid.
Net metering is an integral part of the solar experience because it allows homeowners to earn a return on their investment. Most solar users can offset the majority of their electricity costs; and while most of the energy their system generates will go to feeding the home at night, they will get paid the utility’s retail rate per Colorado Law. This provides big savings.
Tax Incentives and Rebates for Solar Power in Colorado
As if saving money wasn’t enough, Colorado offers tax incentives and rebates for those who utilize solar power systems. Not only will you get credited for extra electricity that you generate, but you will also benefit from producing clean energy and not have to pay taxes on your solar electricity system.
Tax Exemptions for Solar Energy Equipment
Colorado has tremendous tax breaks for solar users. First, you won’t have to pay the government anything for your new solar energy system. The Sales and Use Tax Exemption for Renewable Energy Equipment states that there will not be any sales tax added to the purchase of your new solar system. The Property Tax Exemption for Renewable Energy Equipment will allow you not to have to pay any taxes on the increased value of your home because of your solar system.
Energy Savings Mortgage Incentive for Existing Homes
If you don’t own property or if your home is not fit for solar energy, don’t worry. Colorado is one of the biggest supporters of community solar initiatives. This allows those who are interested to subscribe to an off-site solar array. This effectively offers you the benefits of solar without having to install them yourself.
The Federal Solar Tax Credit
This federal tax credit can lower the cost of your solar panel system by 30 percent. It is important to remember that the ITC only applies to those who buy their solar system with cash or a solar loan. You must also make enough money per year for the tax credit to have an effect.
Solar and Rising Utility Rates
There is a bit of an ongoing battle happening between the traditional utility companies and their up-start sustainable energy counterparts. The reality of the situation is that the near double-digit increase of electricity bills over the past decade has caused consumers to think twice. Thinking twice about this scenario usually means switching to a solar electricity system.
The bottom line is when it comes to electricity costs; solar energy systems offer more predictable and competitive prices when compared to traditional utilities. The reason behind this? Fixed costs. After the initial up-front investment, the system will produce free electricity. Therefore, those who own solar energy systems are not subject to the fluctuating costs of non-renewable energy. This is a huge plus for your financial future.
Increase the Value of Your Home
We have talked a lot about the benefits of a solar energy system and the effects it can have on your energy bills. But what about the effect it can have on your home? Believe it or not, home values rise at an average of $20 for every $1 reduction in annual utility bills after the installation of a new solar panel system.
So How Much Can You Save With Solar Energy?
The proof is in your bill! After installation, you will start to see savings almost immediately. With all of the rebates, tax credits and other benefits you receive, why wouldn’t you want to switch to solar? Start saving today and call REenergizeCO. We can educate you about the benefits of solar power for your home and help you determine if it is the best option for you.