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With solar energy systems, you can now power your home or business while saving on your electric bills and working toward a more sustainable future. However, the hefty cost for system installation can pose a threat for many homeowners. In this article, we tackle the various ways you can strategically optimize your solar system installation costs while boosting the ROI.
Understanding Solar System Costs
The first step toward easing installation costs is understanding the various aspects that contribute to the overall expense. A solar system is mainly composed of solar panels, inverters, mounting systems, and the respective installation labor. Other cost factors comprise of local laws, permits, and even incentives. Having done your specific research, you can now approach the specific factors with the hope of saving.
1. Government Incentives
Just as with other energy systems, solar energy systems come with their respective government incentives. These can be in the form of tax credits, rebates, and even grants. In the US, for instance, the Federal Investment Tax Credit provides homeowners the ability to deduct a certain amount of the installation costs from their federal tax obligations. Be sure to conduct your research on state or local incentives to guarantee that you are leveraging the solar installations grants.
2. Review Quotes from Different Installers
All solar installers don’t charge the same. To get the best deal, it is necessary to obtain several quotes from different companies. When assessing quotes, make sure to pay attention to the services and equipment. Pay attention to the installers’ reviews and reputation to the solar industry, this will help you evade poor quality installations with costly upkeep later on.
3. Go for a Solar Lease or a Purchase Power Agreement (PPA)
If the initial costs of a solar panel system are too expensive, a solar lease or a PPA might be the best choices. These options allow you to install solar panels at little to no upfront costs. Instead, you pay a monthly fee to lease the system or, a fixed rate for the electricity generated, at a later date. This provides a lower upfront investment and access to solar power.
4. Boost Energy Efficiency Prior to Installation
Improving your home’s energy efficiency can reduce the size of your solar system. With lower system requirements comes lower installation costs. Consider completing an energy audit before solar panel installation to identify areas where efficiency can be improved. Upgrading insulation, sealing leaks, installing energy-efficient appliances, and similar actions can substantially lower energy costs and the costs of solar installation.
5. Think About a DIY Installation
If you possess the requisite technical skill, a DIY solar installation can be an economical option. A significant time commitment and knowledge of the solar market is critical, but you can save thousands of dollars in expected labor costs. Make sure you are informed about local regulations and safety standards before DIY installation.
Market Update and Future Predictions
The solar power industry is changing fast since new technology is making solar systems cheaper and more effective. Increased usage by residential and commercial clients is expected to make solar systems more cost effective. Besides, the growing number of financing options and government incentives is already supporting wider adoption. As we try to enhance our environment, industry trends need to be monitored, and every available tool needs to be used to get the most cost effective solar system installations.