The USA has tripled its solar-power-generating capacity since 2010 and increased it tenfold since 2007, according to a new report from the non-profit advocacy group Environment America. It is expected that by the end of the year, a solar project will be installed every four minutes on average throughout the country. Reduced solar panel prices and new flexible financing options and are causing rapid growth and increased deployment of rooftop solar across the nation. With all the financing in place, it is easier than ever to declare energy independence and choosing the right solar program is easy.
Property owners that are considering going solar should work with a company that has an outstanding reputation and offers a wide variety of financing options. Purchasing a solar power system outright will provide be the best investment, with an Internal Rate of Return (IRR) of about 15 percent. However, many solar generators prefer to come up with little to no money out of pocket. Property owners are able to finance a solar project for no money down and receive the benefits of owning the asset. Another option that has become popular in recent years is leasing a solar project.
If you finance your solar power system to own, you will see a better return on investment (ROI) than if you lease your project. In most cases, you are able to finance your solar power system for $0 down and have a monthly payment that is less than your current electric bill. When you own your solar project, you are eligible for a significant Federal Tax Credit. The tax credit is equal to 30 percent of the overall project cost. The tax credit is a one-to-one credit against any tax liabilities; it is not a write-off. If you cannot absorb the tax credit fully in the first year, the credit carries over from year to year until fully exhausted. The average homeowner receives a tax credit to the tune of $6,000 for their solar installation. The federal incentive program is slated to last through 2016.
A solar lease is another option that allows you to go solar for no money out of pocket without owning the system. This is a great option if you do not have tax liability or are unable to take advantage of conventional methods of financing your home’s solar system. You simply make low monthly payment for the energy generated from your solar power system to a third party financier leasing company instead of Southern California Edison. The lease payment is typically a little lower than the financed system, but you will not receive a Federal tax credit with this option. Leases allow property owners to go solar for $0 down and have a monthly payment that is less than the utility. The lease option allows you to avoid personal debt, and save money every month. No equity is required and a FICO score of 700 guarantees approval.
With both a purchased system and a leased system, you are able to insulate yourself from the utility’s ever-increasing electricity costs by going solar. The average residential property owner will save $60,000 over a 20 year period by going solar.
To learn more about solar energy and financing options, contact Sullivan Solar Power. Sullivan Solar Power has been ranked by one of the fastest growing companies in the nation by Inc. Magazine. Call 1.800.SULLIVAN or visit www.SullivanSolarPower.com for more information.