According to the Department of Energy (NREL), the average cost for a 5kW residential solar installation is more than $16,000. This national estimate is even higher in California due to our state’s more expensive installation and labor costs.
Either way, going solar can be a hefty investment for many homeowners. They want the benefits that installing photovoltaic (PV) panels can deliver. But they lack the upfront money required to receive:
If you’re also on a tight budget, you may have your own doubts as well. Does it really make sense to shell out thousands of dollars to receive these benefits?
The short answer is “YES.” Even in an expensive state like California, going solar is worth the investment.
Let’s explore why that is.
The main reason why homeowners go solar is to reduce the amount of money they pay to their local utility companies. With PV panels installed, you’re able to generate your own clean power on-site – entirely from free sunshine. And as a result, you don’t have to spend as much on expensive grid electricity.
Because of these monthly savings, your solar panels are guaranteed to eventually pay for themselves. This is particularly true in a market like California that has:
If your solar savings amount to $100 a month, for example, it would take about 13.5 years for your $16,000 PV installation to break even.
And that’s assuming utility rates stay constant over that period.
Nationwide, electricity prices are on an upward trend. So your monthly savings will actually increase with time, resulting in an even shorter payback period.
And that’s also assuming you pay the full $16,000+ ticket price for your PV panels.
And here’s why:
If you use either (or both) of these incentives, the payback period of your solar investment becomes much shorter.
But it gets even better.
It’s possible to receive a brand-new solar PV installation without paying any upfront expenses out-of-pocket.
In fact, there are 2 different approaches you can use.
With a Solar Power Purchase Agreement, you pay $0 upfront to have panels installed on your home. And you only pay for the electricity these solar panels generate every month.
This is a very attractive option for homeowners on a limited budget. Just know that you’ll never officially “break even” with a power purchase agreement. Instead, you’re simply buying electricity from a cheaper and cleaner energy source – i.e. the sun.
The other approach is to take out a low-interest solar loan. Again, you pay $0 upfront to get started. And you use the money received to cover the full cost of your PV installation.
Thereafter, you pay down the loan balance using your monthly electricity bill savings. And with incredibly low interest rates ranging from 2.99% (for 15-year loans) to 3.99% (for 20-year loans), you’ll still have extra money left over every month.
So even though you’ve technically gone into debt, it is still cash flow positive as you’re not pay anything out-of-pocket to receive these solar benefits.
And it gets better.
At Bright Planet Consulting, we carefully design our solar PV installations to deliver payback periods of 8 years or less – 100% guaranteed.
There are never any surprises. The breakeven point of your solar investment is set in stone.
In addition, we can also help you:
And for qualifying PV systems, we’ll even throw in a complimentary electrical panel upgrade. ($3,300 value)
The question isn’t whether you can afford to go solar. It’s whether you can you afford NOT to.
If you live in the Bay Area and want to learn more about our approach to affordable solar solutions, contact us today for a free consultation.
To compare solar financing options and see how much you can save, use our solar calculator below.Calculate Your Solar Savings!Schedule Consultation