• News
  • Real Estate

A new light on financing your solar energy system

2013 looks to be a brilliant year for home and business owners who are looking to reduce or eliminate their electricity bill while improving their green footprint.

Can you imagine how good you’ll feel when you say goodbye to your monthly electricity bill?

Before you can put the unlimited power of the sun to work, you have to decide how to pay for your system. The energy from the sun may be free, but the system isn’t.

Congratulations if you are in the position to finance or make a cash purchase of your new solar energy system. Both home and business owners will maximize their return on investment by taking advantage of the 30 percent Federal Tax Credit.

In addition, business owners will be able to write off another 35 percent of the cost of their system over five years using the Modified Accelerated Cost Recovery System (MACRS) for depreciation.

Business owners who install a commercial solar system are also entitled to a third financial incentive through the $2.167 billion California Solar Initiative (CSI) program.

On the bright side, if you’re building a new energy efficient home, you’ll want to be sure and apply for the New Solar Homes Partnership (NSHP) rebate.

What if you’re not in the position to pay cash or qualify for the financing to purchase your solar energy system? There is no shortage of companies ready to help you sign on the dotted line for a zero down solar lease. Sound too good to be true?

Yes, you will likely save 10 to 15 percent over your current electricity bill. You’ll now have a new monthly bill for the solar lease payment, and still have a monthly electricity bill, too. You won’t actually own the solar energy system or the power it produces, so it is not an investment. It’s just a different expense.

Many solar leases also have the downside of locking you into a contract for 10 to 15 years. What happens if you decide to sell your home and a potential new owner doesn’t want the hassle of taking over your lease? What happens if the laws change and the price of electricity goes down? What happens if your lease has a built in annual price escalator and the price of electricity rises less than your contract escalator? Why are there so many companies popping up to offer solar leasing? These are some of the questions you should research so that you can make an informed decision about solar leasing versus a solar purchase.

You owe it to yourself and the planet to look into what a solar energy system can do for your home or business. Energy independence is something we all dream of. But why dream? All it takes is a quick and easy phone call or email to a solar installation expert like SouthwesternSolarSystems.com to find out if it’s the right time for you to start saving with solar.

-Submitted by Southwestern Solar Systems.

User Response
0 UserComments