When Should I Go Solar? (The Answer Is: Yesterday)

When Should I Go Solar? (The Answer Is: Yesterday)

After you decide that solar is a great option for you and your family, the next question is simply: When should I go solar?  

According to the Solar Energy Industries Association (SEIA), installing a residential solar energy system costs 70% less than it did in 2010, which is great news for today’s solar shoppers. 

However, the ever-decreasing costs of solar create a conundrum that many soon-to-be-solar homeowners are asking themselves: should I go solar now or wait? For many, daily headlines that declare lower and, lower prices can stir them to action. For others, these same headlines can cause them to wait a few more years in hopes of saving even more money. So who’s right?  

There are several factors to taken into the equation that point to going solar sooner rather than later.  

Electricity prices continue to rise. 

If you wait to go solar, you’re stuck paying your utility electricity bill every month, which can be an increasingly expensive proposition: electricity prices have risen almost 30% on average in the US in the last 10 years, and here in Washington state the average cost of purchasing electricity from the utility company goes up at a 6% rate yearly.  

The typical U.S. home spends over $1,400 a year on electricity. If you buy a system that meets 100 percent of your electricity needs today, you can eliminate your electricity costs and have an extra $1,400 in your pocket a year from now. The following year, when prices go up, you’ll save as much as $1,500 – and the savings will continue to grow for the 25 to 35 years that your system is operational. For every year that you don’t buy solar, you lose out on all those electricity bill savings. 

Solar incentives won’t be here forever. 

While there are significant rebates, tax credits and other incentives in place to encourage homeowners to go solar, incentives programs usually get phased out as solar becomes more popular and costs decrease. The current federal renewable energy tax credit in 2021 is 26% but this rate typically changes every year.  Simply put, financial incentives reduce as the popularity of solar grows. 

Washington state has a net-metering scheme in place where homeowners are paid for the extra kWh’s their system produces. Currently homeowners can offset up to 100% of their consumption.  

Supply chain issues threaten the industry. 

The pandemic has affected every industry on the planet and it is certain to affect the cost of solar in the coming months. The historic record of ever-decreasing system costs may have come to an end. The industry is already seeing supplies dwindle. This fact alone is a convincing argument to go solar while equipment is available and the costs haven’t yet been altered due to shortages. 

Financing options make going solar now easy. 

If you’re interested in going solar now but are worried about making an upfront purchase, there are state-incentivized energy loan programs offered through credit unions. These programs offer attractive rates, no money down and no payments for the first 90 days. They also allow you to re-amortize the loan in year two when you get your tax credit back, which lowers the net cost to below what you would be paying monthly to the utility company.  

So, the real question is: What are you waiting for? 

While it may seem that good things come to those that wait, in this case, there has never been a better time to go solar than right now.  As utility costs rise and solar incentives fade, the probability that you’ll be paying more for solar in the future increases.  Start researching your options and have a conversation with a Solar Design Consultant who can help you reach your green energy goals today.   

To learn how to start your future with solar, call/text us at 206-462-1103, email us at [email protected], or get a free quote here. 

Author Bio:

Nate Brothers is a Solterra Solar Design Consultant and a passionate advocate for the environment. He earned a degree in Environmental Sustainability from Colorado Mountain College where he focused on understanding and implementing critical solutions for messy situations like climate change. Originally from Kansas, Nate fell in love with open spaces at an early age. He has spent his adult life chasing back country powder stashes and the robust white water of the great American west.