What’s the Net Cost of My Solar Panels?
by Cody McGowan, on Jun 3, 2020 11:18:00 AM
Tax Credits & Incentives That Lower Solar Panel Costs
There are many exciting advantages to going solar. First, you’ll be helping the grid switch to clean energy. You’ll save on monthly utility bills. And with our sleek black glass panels, your rooftop won’t look like an eyesore. But the most common question we receive about solar energy is: how much is this going to cost?
We’ll break it down for you. Below, we explain the upfront costs versus net costs. Plus, what’s the best way to pay off the solar panel cost for your Decatur, IL home? Continue reading to discover what’s right for you.
The Initial Solar Cost
There’s the total worth of your panel installation, and then there’s the price minus all the government will cover. The exact number for your initial setup will depend on how large your property is and how much power you will need. If your house requires a 12-kW system, for instance, that will cost more than a 4-kW house. The upfront costs could be somewhere between $10,000 or $12,000, give or take a few potential thousand. Once we have analyzed your house’s property, we can give you a closer estimate.
After Tax Credits and Incentives
Your solar installation’s net cost will be much lower once you factor in the Investment Tax Credit (ITC) and Illinois’ Solar Renewable Energy Credit (SREC). The ITC allows you to deduct 26% of your panels’ cost from your yearly taxes. If you don’t use the entire credit, it can carry over to the next year. Plus, for each megawatt-hour of electricity your system produces, you’ll earn an SREC, which is sold for profit. Your electricity provider is required by law to buy back excess power you generate. So, you’ll save thousands more on your installation!
How to Pay
In order to qualify for tax credits and monetary incentives, you need to purchase your system, and not lease. You can either pay upfront to immediately start saving on utilities each month, or you can pay for the panels over time with a solar loan, requiring little upfront costs. Purchasing your panels includes maintenance options and product and workmanship warranty, making it even more worthwhile.
Are you ready to discuss a solar energy system for your Decatur area property? Contact Summit Solar to get started on your new solar home.