So, you’ve heard the buzz about solar energy and are wondering if there’s such a thing as a free solar program? Unfortunately, the answer is no. But before you give up on your dream of owning solar panels, let’s talk about how solar panels can be close to free (or basically equivalent to free).
When you hear that you can go solar for free, that’s just clever marketing. It is better to think about solar as a bill swap. When most people purchase a solar system, they finance it over a set number of years. Since they will be generating the power to cover their electric needs with their panels, they are basically swapping their electric bill for a monthly solar payment (until the system is paid off). This is the most common situation. Customers end up paying less for an expense they were going to have anyway, so you could look at it as “free.” But the reality is, it still costs something.
So while there is technically no free solar program out there, when you swap your electric bill for your solar bill, it’s similar to being free because you’re paying far less than what you would with traditional electricity. Plus, at the end of your pay off period, you own your panels outright, which means you own your own power production. In short, you’re done paying for electricity at that point.
How the Tax Credit Affects the Overall Cost of Going Solar
The federal ITC (investment tax credit) was created to help those looking to install a residential solar panel system. It is a 30% federal tax credit which applies to the total cost of the system, which can make a huge difference in the final cost.
For example, let’s say that you’re looking to install a $20K solar panel energy system for your home. With the ITC, you’d be eligible for up to $6,000 in tax credits, making your total cost only $14,000 – and that’s not even accounting for other incentives your state or utility may offer. In short, the ITC makes solar much more affordable than it used to be and helps you save money all around.
Once installed, dependable solar energy systems typically require little maintenance and generate electricity for decades. Over time, your solar savings will add up. Even better: You’ll no longer have an electric bill because you’ll be generating your own power!
While there is no such thing as a ‘free’ solar panel program, the 30% tax credit can make it seem like you are getting a free solar panel system because it enables you to essentially swap your electric bill with a much lower solar bill. When you factor in the savings you get from the federal tax credit, and the lower solar payment, it can end up being comparable to a free solar panel system.
When you’re ready to learn what solar could be saving you now and for decades to come, reach out to us for a free custom savings report. You’ll learn whether your home is a good fit for solar, discover your savings down to the penny, see exactly how the panels would look on your roof. Reach out today.