Buying Solar Panels Vs Paying For Electricity

Cash buying your solar electric system outright is best.

Buying solar panels vs paying for electricity.

If your electric rates are high you ll pay off the cost a lot sooner according to the solar energy industries association. While solar leases and power purchase. How are you financing your solar panel system. Both buying and leasing solar panels have their own advantages and disadvantages.

Residential electric utility rates are on average approximately 12 cents per kilowatt hour in the us. Whether you choose to buy or lease your solar panels will have a major impact on your system s long term value. There are a few factors to consider before entering an agreement to buy a house with solar panels and they depend on the type of solar panel installation. If you buy a solar panel system you own the system either outright if purchasing with cash or after repaying your solar loan.

2 check average rates in your area on this map. The history of sdg e and solar power. If you lease the system or sign a power purchase agreement ppa a third party owns the solar panel system. So in order to understand how we got to this point let s look at the history of sdg e paying for solar how it has evolved and the current rate structures used to determine payment.

If you have enough to make a purchase in cash you ll save more than with any other option but even with a 0 down solar loan your savings could still be in the tens of thousands. Solar panels generate their own power and can therefore greatly offset your monthly electricity bill if not eliminate it. In exchange for using solar energy you pay a monthly lease payment to the solar company. Assuming you don t have the cash to buy your solar energy system upfront like the vast majority of americans there are a variety of financing options to help you hitch onto the solar bandwagon and start increasing the value of your home.

It usually costs 15 000 to 20 000 after tax credits and can reduce your electricity bill by 70 to 100 percent depending on the size and. After you ve made the decision to go solar the next step is figuring out how to pay for it. The main practical distinction between buying and leasing a solar pv system is in ownership. Electricity costs over the years have fluctuated a great deal annually.

Solar energy has financial benefits that will save almost all homeowners money even if you are not the original owner. Let s do the math. In 2014 the us average residential household used 911 kwh per month and the average monthly electricity bill was 114 before taxes and fees. Buying solar panels.

High electricity prices are only bad if you re buying. The higher your bill the more likely you ll benefit from switching. You get to use all of the solar power that your system creates which cuts down your utility bill with net metering.