Each year, solar installation costs continue to decrease — which is good news! But businesses and homeowners may be confused about whether they should go solar now or wait several years as the prices continue to diminish. Many variables affect the return on investment, such as the upfront cost and tax incentives. If the price trends endure, you can keep putting it off to save more money each year, but be mindful that the tax incentives are also diminishing and electricity cost continues to increase. In 2020, the Federal Investment Tax Credit (ITC) decreased from 30% to 26% and in 2023 it will decrease to 22%. Presently the plan is that as of 2024 the ITC will disappear for homeowners and will only be 10% for businesses.
Factors Affecting the Best Time to Invest in Solar Energy
If you’re questioning whether you should install solar panels now, ask questions like:
- Do I want to reduce or eliminate my electricity bill?
- Does it make economic sense to invest now to save money in the long-run?
- Do I want to take advantage of the 30% ITC?
The factors affecting your decision should include:
- The area of space on the structure
- The positioning of your roof
- Your budget
If your roof is not sufficient to withstand the size and weight of solar panels, you can install solar panels on the ground. The position of your roof is also vital, as panels that face the south will produce more energy, while east or west-facing panels are viable but don’t produce as much.
Should I Go Solar Now or Wait?
If you act now, you’ll reap the incredible benefits of solar panels, and the 30% ITC, but if you wait, you’ll have to continue paying your electricity bill each month, and you will lose out on the 30% ITC which will decrease your ROI. Buying solar panels that meet your entire electricity needs means you can eliminate electricity costs — therefore, saving the money you would otherwise be spending on your monthly bill. Some people finance their solar system and their monthly loan payment is still less than their electric bill.
Now is a better time than ever to make the switch because of tax credits, lower costs, and other incentives. Some local and state governments offer programs, but as panels become more popular, incentives decrease. Review the Database of State Incentives for Renewables & Efficiency (DSIRE) to learn of other possible incentives. Several states also have solar renewable energy certificates, which are programs that pay for the energy you produce.
You can also consider an energy audit to measure your potential ROI. Inspections help you set energy goals and understand your power requirements. Professionals can estimate the money you’ll save with a solar panel installation.
When to Switch Your Property to Solar Energy With MexLucky Energy
If you can afford the solar electric system, and you want to begin saving money on your utility bills, now is the best time to invest in solar panels while you can take advantage of the 30% ITC.
Why MexLucky Energy?
MexLucky Energy specializes in the design and installation of solar electric energy systems. We custom-design each system to suit your needs and maximize your ROI. As a family-owned operation, who also specializes in roofs, you can trust us to focus on quality craftsmanship. Contact us for a free site analysis or to learn more about our services.