We think 2019 is an exceptional time for solar.
Here’s why Byers Solar thinks that 2019 is a stand-out year for solar and answers to some frequently asked questions:
Why are residential solar panels so much more affordable now than in the past?
Technology has advanced and reached a very high point in cost versus return on investment. This means the amount of space required for solar panels has gone down and the amount of energy each panel produces has gone up.
The life expectancy of solar systems overall has increased to a point that SunPower offers a Complete Confidence Warranty for 25 years for parts and labor — including panels, micro-inverters and racking systems.
Is solar a good investment?
Unlike most investments, it is certain fact that you and your home will continue to use energy, making solar energy a stable and assured investment with a guaranteed use and a firmly projected return.
Will solar panels costs continue to go down after 2019?
The rate of price deflation in solar panels slowed significantly in 2018. SolarReviews online publication research shows that over the course of 2017, solar panels cost fell by less than 6%, making this the first year where the annual cost reduction is been less than 7% in this decade. This indicates that sharp decreases in cost have plateaued.
In the overall marketplace, there is also the potential impact of import tariffs, though SunPower’s unique technology exempts them from tariffs, the overall market may see an increase in cost.
What about those solar tax credits?
2019 is that last year to take advantage of the solar tax credit. The federal solar tax credit, also known as the investment tax credit (ITC), allows you to deduct 30 percent of the cost of installing a solar energy system from your federal taxes. This credit is scheduled to decrease with 2019 being the last year for the full 30 percent tax credit benefit.
Here’s a view of the Solar ITC Schedule
- 2016 – 2019: The tax credit remains at 30 percent of the cost of the system. This means that in 2017, you can still get a major discounted price for your solar panel system.
- 2020: Owners of new residential and commercial solar can deduct 26 percent of the cost of the system from their taxes.
- 2021: Owners of new residential and commercial solar can deduct 22 percent of the cost of the system from their taxes.
- 2022 onwards: Owners of new commercial solar energy systems can deduct 10 percent of the cost of the system from their taxes. There is no federal credit for residential solar energy systems.
How is adding solar different than other home improvement projects I’m considering for 2019?
Solar is one of the few home improvement projects that have an income attached to it — you invest, and it provides an ongoing return.
Your solar income comes in the form of utility savings. When we talk about solar savings, we mean the amounts of money that you would otherwise have had to pay to the utility company.
This means your solar home improvement project
- Allows you to invest in improving your home, instead of paying high utility bills
- Increases the value of your home
- Over the life of the solar system typically produces income, paying back an amount greater than the investment
This investment return varies from location to location based on how expensive your electricity is and many other factors. Byers Solar will help you plan the best fit for your energy needs and budget, call (530) 272-8272 for a complimentary consolation and analysis.
Do I need to install a solar battery with my solar panels?
No, battery storage may be appropriate for limited backup power in the event of an outage, but it is a completely optional aspect of an energy system, with the exception of off-grid installations. In most instances, the cost/benefit for a residential battery does not fall in favor of the consumer. There are a number of additional options for power back-up that are currently readily available, like generators.
This is an appropriate discussion to have with Byers Solar as we work with you to develop your renewable energy profile.
Call (530) 272-8272 to learn the best solar energy options for your home or business.