When solar energy first became available in the 1970’s, the technology wasn’t economically feasible for most homeowners and business owners. Since then, however, prices have dramatically dropped — by over 80 percent, in fact.
Financial and energy experts have proclaimed this the age of the solar economy. Thanks to the exponential growth of the industry, spurred by the now-affordable cost, solar technology is reshaping the very basis of industry and economics around the globe.
Read on to learn how this new solar economy benefits us all, but especially those who are installing photovoltaic systems.
Payback Period on Solar Systems
Consumers who are interested in a solar energy system always want to know about the payback time. In other words, how long it will be before the system has paid for itself and begins generating truly free power? This topic ties closely to the phenomenon of grid parity, or the point at which the costs for solar energy are the same or less than those of traditional electricity obtained from the municipal power grid. Several factors can influence this time frame.
The location of your house or business and how it is situated in relation to the sun can affect the payoff time, as these factors directly influence the system’s efficiency and production potential. The amount of money saved monthly (versus paying a power bill) after system installation, as well as the initial installation costs, also help determine the length of the payback period. Some people may achieve payoff sooner by taking advantage of incentives and smart financing, and many can reach grid parity in only a few years.
Incentives Reduce the Cost of Solar Energy
Many people believe that the upfront costs of a PV system are beyond their means, but this is no longer the case. Currently, a 30 percent federal income tax credit is available on the initial system and installation costs. State and local rebates and grants are available as well.
The amounts can vary depending upon location and solar energy application, but they can add up to several thousand dollars.
Low Cost + High Demand = Economic Benefits
Because we have essentially achieved grid parity already in the United States, the demand for solar energy generation systems continues to skyrocket.
The industry is creating jobs at a surprising rate. Large-scale “solar plantations” are now powering hundreds of government, school and military facilities around the country, saving taxpayer dollars. Alternative power technologies have begun proliferating in other industries as well, including the automotive industry.
Little by little, we are becoming an entire country focused on true energy independence and significant cost savings.
Are you ready to start saving money and breaking free of oppressive electricity bills? If so, contact Intermountain Wind and Solar today to schedule a free consultation. We provide photovoltaic panel systems to homeowners and businesses throughout the Intermountain West, including Wyoming, Idaho, Nevada, Colorado and Utah. Contact us today to learn more about adopting solar energy.