There are still almost two years of tax credits on solar panels. Therefore, this is one of the “solar myths” that is actually a solar fact. The tax credit available for renewable solar panels is decreasing. In 2020, the tax credit for solar panels, income tax credit or ITC for short, is at 26%. This is down from 30% in 2019. The tax credit will decrease another 4% until it disappears in 2022.
As the end of the tax credit nears, additional interest solar panel installations will build up to the last minute. When this happens, there will be people rushing to install with enough time. Moreover, this is to capture the solar tax credit to its maximum potential. It would be correct to say that time is running out for the full financial benefits of installing solar panels.
# 2 Top Solar Myths In 2020: You Don’t Save
In some states, solar electricity costs are slightly higher than the local utility. However, the balance shifts as the cost of solar panels decreases, and fossil fuel costs fail to remain competitive.
In a significant part of the country, the cost of electricity from the power grid is more expensive. Furthermore, we compare this to the cost of electricity from solar panels or other renewable energy sources. The cost difference is so extreme in some locations that a homeowner may save over 50% of their current average electricity bill. This is with solar loans, making buying easy.
With that level of savings, a savvy homeowner could fix the cost of their electricity and invest the difference into a retirement account. Imagine growing your nest egg on what you would have otherwise given to the power company while at the same time living green.
It is important to note that savings are specific to each home as every property has its unique scope of work involved. The DroneQuote model is built on drone technology and web tech to create a customer experience for 2020 and beyond. We’re living in the future, baby!
Solar panels and other renewable energy introduce significant monetary benefits in many markets around the United States where conditions are right. Even after the solar tax credit expires, the savings from solar panels will be significant in enough markets to continue purchasing over the option of buying electricity from the local utility, primarily if the solar panels are financed through the right solar loan option.
# 3 Top Solar Myths In 2020: It’s Expensive
One of the many solar myths that will live into perpetuity is that solar panels are expensive. In today’s day and age, at what the current cost of electricity is from most Utilities in the United States, not having solar is more expensive than installing solar panels.
Top Solar Myth 2020: It’s Expensive.
Considering solar panels from the up-front cash perspective may seem expensive, given the upfront cost. But think installing solar panels and paying cash is unlike any other big-ticket purchase or home improvement. Unlike big-ticket purchases, installing solar panels will literally pay for itself many times over. Plus, the added benefit of added equity to your home is happening in most real estate markets where solar panels have become the norm.
Besides the payback period and gains in home equity dispelling the expensive myth, there’s also the continued decrease in the cost of solar and the soon-to-end tax credits that further bring down the price. In 2015, the average solar cost was $3.80-$4.00/watt, depending on your sources and location. Going into the new decade, the average cost of solar in 2020 with DroneQuote is usually less than $3.00 per watt. With additional technology gains and efficient marketing, there is room to make solar panels even more affordable and dispel this myth.
# 4 Top Solar Myths In 2020: Solar is Free
Some solar myths are easy to dispel because they originated from a common misunderstanding. Still, one of the most nefarious solar myths and outright lies in most cases is the myth that solar is free. We all know the saying, “Nothing in life is free,” so it should always raise a flag of sorts if somebody tells you something is free. Especially free solar panels.
Solar panels are rarely free. Although there are times here and there when homeowners of qualifying income brackets or circumstances are given free solar panel systems, it is rare. Even so, this solar myth is sometimes used when lying to people about free solar panels. There are some loan options known as property-assessed clean energy, or PACE for short, wherein the system is financed by determining the cost of the solar panels plus fees of the program to the homeowner’s property tax bill.
Since the balance doesn’t go on the homeowner’s credit, a homeowner may have the impression of the system being free because nothing was “paid for” out of pocket and nothing “reflects on their credit.” When the homeowner is hit with the tax bill for the solar panels financed by PACE, the salesperson is long gone, and the homeowner is now stuck with a bad loan, high rates, and higher pre-payment penalties.
If anybody promotes free solar, free energy efficiency services, or free appliances, it should make for a moment of consideration. While solar loan payments are often times less than the average monthly utility bill, there is nothing “free” about solar.
# 5 Top Solar Myths In 2020: There’s A Long Payoff Period
Solar Myth In 2020: A Long Payoff Period
The solar payback period is usually 4 years + for installing solar panels. However, the payback period for not installing solar panels is never, and you don’t gain any equity in your house simply for paying the electricity bill. While in the best-case scenario, somebody may see a solar payback period of fewer than 4 years, it also means that the cost of electricity in that location is extremely high. In other places where the price of electricity is lower, a solar payback may be longer than four years.
For homeowners who choose to use a solar loan or some other kind of financing to buy their solar panels, it may be possible that they save over 50% of their previous utility bill without spending a single dollar out of pocket. By that measure, the solar payoff will have been immediate.
To get the best return on your solar investment, you must get the most competitive price and the best installation quality. It makes no sense to find the lowest possible price if the installer is going to cut corners, which will cost you more. DroneQuote provides you multiple quotes for solar and roofing from different installers to ensure you get competitive pricing. Unlike any other service, we use drone technology to survey the roof before and after work. Get FREE solar and Roofing quotes with DroneQuote the intelligent way.
To understand more, watch this video about Watts My Price, an app made by DroneQuote to show you how much it’ll cost you to go solar.