Solar 101: Paying For Solar
Once you have decide that you want to go solar, paying for solar becomes a topic of discussion. Whether you decide to pay for your solar system in full or finance it, the cost is a big factor in deciding to go solar. The cost of your system will depend on a number of factors including: available unshaded space, the size of the system, your current energy usage and costs, your area’s utility net metering policy, tax credits, incentives, and rebates. We can walk you through your system’s needs, available tax credits, and financing options. Most customers have a solar payment that is lower than their previous electric bill, allowing them to start saving money from day one.
Types of Financing Available
Low Interest Financing
New York’s Green Jobs Green New York Program (GJGNY) provides a loan with low interest financing. This is most commonly used by customers that would like to pay for the portion of their solar system cost that is covered by tax credits up front.
Tax Credit Bridge Loans
There are a number of solar loan products available that include a $0 down, 0% interest bridge loan for the value of the 30% federal and 25% New York State tax credits.
Solar Loans
Our Financing Partners offer a number of different solar loan products that enable customers to have a solar bill that is smaller than their electric bill. Coupled with an included Tax Credit Bridge Loan, financing a solar system has never been easier.
Solar Tax Credits & Incentives
One of the many wonderful things about going solar are the tax credits and incentives that you can receive. There is a federal tax credit available and depending on what state you live in there are additional incentives for you to take advantage of.
State Tax Credit (NY, MA)
New York and Massachusetts offer state tax credit to be used against the total cost of a solar system. State tax credits are dollar-for-dollar rebates against state income taxes that are paid throughout the year or owed come tax season.
State Rebates (NY, CT)
In some states, programs provide grants that are the same-as-cash rebates for systems installed by authorized solar companies. The amount of the rebate is determined by the size of the system and are frequently set up as “funding blocks.” Funding blocks are depleted as more solar is installed, and the overall incentive value shifts to the next level of funding. It is important to take advantage of these rebates while they last. For example, customers in New York who received $5,000 in funding in 2016, only received $3,000 for the same size system installed in 2017.
SREC’S (NH, NJ, MA)
Solar Renewable Energy Certificates are a tradable commodity that can be sold by homeowners to their utility in states that have Renewable Portfolio Standard (RPS) legislation. Eligible homeowners will receive one SREC for every 1,000 kWh generated by their systems. An average system creates 7-10 SRECs a year, which means over a 10 year period, a solar system in the SREC markets can earn the homeowner $5,000 to $30,000+, just for producing solar electricity.
Feed-In Tariffs (VT)
Some utility companies utilize feed-in tariffs to help encourage the adoption of solar energy. The concept is simple. The electricity your solar system generates is credited to your utility account at a higher price than the electricity you pay for. For example, if you pay $.145 per kWh, your solar system would earn you an extra $.045 per kWh. This makes a solar credit of $.19 per kWh. With these bonus credits, your solar system can be sized 20% smaller than your total usage, and still zero out your utility bill.
Do you have further questions about paying for solar and the options available? You can reach out to us here
and we would be happy to help! You can also get a free quote here if you are ready to make the switch to solar!
Backup Power During Outages
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