Who wouldn’t want to cut energy bills by 80% or more while effectively eliminating one’s negative energy impacts on air, water and finite natural resources? But with solar booming in recent years and technology updates reported almost daily, many home and business owners feel they should wait for the latest and greatest, or simply for the cost to continue to go down. However, there are a number of important reasons why you shouldn’t wait…
1. Minor Technology Gains Aren’t Worth the Wait
Research in the solar industry is ongoing and I have no doubt that panel technology will improve. However, most changes in design and efficiency are small. And the research and development necessary to ensure the technology works in the field and not just the lab takes time. The bottom line is this: the financial value of small efficiency gains from panel improvements is outweighed by the cost of waiting. Any money you might save by installing more efficient panels is significantly less than the money you would save immediately by installing solar today.
2. Further Price Cuts Aren’t Worth the Wait
The cost of solar panels has fallen tremendously the last few years—now half of what they were in 2008, and 100 times lower than they were in 1978! So, should you wait for the price to drop lower? We’ve actually started to see the prices of PV solar modules begin to flatten and even slightly increase since 2013. Now that demand for solar is gaining momentum, the costs will likely continue to rise to meet that demand.
3. Electric Costs Keep Rising
The rate of increase varies depending on your state and electricity source but based on the last decade you can expect around 4-5% hikes in grid electricity each year (Energy Information Administration). That means that if you invest in a solar system that meets 100% of your electricity needs today, you will fully save on this year’s costs. But each year thereafter you’ll save an additional 4-5% for the life of your solar system (up to 40 years). As energy prices skyrocket you can rest easy.
4. Rebates and Tax Breaks Are Going, Going…
Rebates for installing solar, once as high as $4.00/Watt, have largely gone away (Pasadena being a happy, and notable, exception!) Since 2006 many owners have benefited from the 30% federal tax credit to make a solar installation more economically attractive. However, on December 31, 2016, the 30% Solar Investment Tax Credit is scheduled to drop to 10% for commercial projects and to zero for residential projects. While we’re all crossing our fingers and toes hoping for an extension, with imminent grid parity—solar power reaching a cost comparative status with grid electricity—predicted to happen in 2016 in much of the US, and a Congress displaying little support for solar… it is entirely possible an extension is no more than a pipe dream.
5. The Environment Can’t Wait
If you’re concerned about climate change, you know that we need to act quickly, and in any way possible to prevent overshooting the global goal of a maximum 2 degree rise over pre-industrial temperatures. The typical residential solar system, about 5 kW, cuts about 6.7 tons of carbon emissions each year (using EPA’s CO2 emissions calculations). While there isn’t a dollar figure attached to that, you may want to consider the larger environmental value of going solar sooner rather than later.
So, yes, you can wait and hope for the technology to improve or costs to decline. But meanwhile you’re tied to your polluting, fossil-fuel-based power company with its steadily escalating electricity prices. Ugh. In contrast, your choice to go solar will quickly prove to be a great return on investment. Why not start saving now?