2019 is the Year for Solar! Solar tax credits are set to expire after December 31st, 2021 and are going to be deflated beginning January 1st, 2020 from 30% to 26% and again on January 1st, 2021 from 26% to 22%.
With an average cost of approximately 17-20k for a 5 kw/h system that means you’re looking at $5100-$6000 in returns at the end of THIS year; whereas, if you wait you’re losing some serious money: 2020 will yield approximately $4500 and 2021 will only return approx $3500. This isn’t gambling. Waiting even one year will cost you at least $600, waiting two years will cost you at least $1500, and waiting three years will cost you at least $5000. Waiting to get solar just means you’re going to be paying more for the same thing.
Several states are in the process of converting from fossil fuels to more renewable energy
According to the International Renewable Energy Agency (IRENA), by 2020 renewable energy should be on par with fossil fuels for cost. As a result, states are exploring carbon-free, renewable, and green energy alternatives as mainstay solutions to a constantly depleting supply of fossil fuels. For more in depth and exciting information check out IRENA’s article: “Renewable Power Generation Costs in 2017.” Although we may have enough coal for at least another 300 years, renewable energy’s decrease in cost means this decision may prove to not only be good for the environment but also our economy.
Right now, Fossil Fuel generated electricity runs approx $.05-.17 per kwh with solar and wind energy being on par or quite close, and by 2020 it’s expected that renewable energy sources will cost approx $.03-.10 per kwh. These new endeavors will create thousands of jobs, give back to our environment, and help reduce our impact on global warming; therefore, it makes sense that states are implementing energy initiatives. People all around the country are beginning to buy solar and some incentives have already been reduced if not eliminated.
Federal tax credit is currently slated for removal by 2022
What’s keeping you from improving your home and saving money today? Colorado’s Renewable Energy Portfolio Standard has frequently performed with the best of the country and has aggressive goals including 30% renewable energy usage by 2020 and a 3% requirement for energy generated via solar.
Currently, Xcel, in Colorado, accomplishes this with the awesome, environmentally conscious homeowners who are switching to solar. Xcel’s CEO Ben Fowke plans for at least half of the accounts in their 8 states to be powered with renewables (You can find more on this in Katherine Blunt’s “Utilities Speed up Closures of Coal-Fired Power Plants” in the WSJ January 9th, 2019 issue).
To speak some praise to the great state, Colorado has such a presence in the world of renewable energy, carbon free energy, and climate awareness that Governor Jared Polis announced his goals for full renewable conversion of Colorado by 2040! With all of this excitement and the recent advancements in solar technology what’s keeping you from getting solar?
Installing Solar may increase the value of your home, but it won’t increase your taxes at the end of the year! On average according to Lawrence Berkeley National Lab (LBL) a 5 kwh system will add approximately $15,000 (National Average of $3/ per kwh generated) to your property value on top of all those savings! To make things better, Colorado legislation believes that helping the environment is a good thing! As a result, that increase in your property value as a result of going green and choosing Solar won’t affect your taxes at the end of the year.
If you like icing on your cake you’ll also love learning that Colorado exempts 100% of all related sales and use taxes on solar systems. Way to go Colorado! That means taking advantage of the federal tax credit is an extremely good choice! You’re going to be saving money, making money, saving energy but most important saving the planet. Why haven’t you called Blue Sky Solar and Roofing yet?
Another good reason
The inflation of electricity and risk associated to electricity only negatively impact one party: YOU the consumer. Today, the current price per kwh of electricity in Colorado on average is $.11. According to Grant Mandigora’s “Colorado’s Electricity Rates Continue To Rise,” in the period from 2001-2016 Colorado experienced a residential electricity rate increase of 60.9%. If this trend continues that means the average rate of electricity in Colorado will be $.20 per kwh or more!
That means, your electric bill will most likely double within the next 20 years. That doesn’t sound fair when you haven’t done anything. Not even factoring in any outages or issues the utility company could encounter. For example, the recent Pacific Gas & Energy Co lawsuits shows that the the individuals hurt by utility companies are the consumers.
Several ‘wildfires’ throughout California have been linked to PG&E equipment, and in the past their Board fought and passed these expenses onto the customers. Should YOU have to pay MORE for electricity because your provider made a mistake? Did you make a mistake? Maybe you should consider solar today. Aside from the awesome advancements in the last few years that increased photovoltaic solar panels to 20%+ efficiency while reducing prices for consumers, various states, including Colorado, offer the Net Metering Program.
If qualified, a net energy meter can be installed on your home to track how many kwh your solar system produces for the grid. On top of the solar rewards program offering $.005/kwh for how much you produce annually, you will be reciprocated with credits or a check for excess energy sent to the grid! That means if you make your home extra energy efficient and practice good energy use you will be getting paid extra.
To sum up
I hope you understand why right now is the best time to transition to a solar lifestyle. Not only are you saving money and giving back to the planet, you’re taking control of the energy you use at a new level. If you have any questions or concerns or curiosities please send us an e-mail or give us a call now! We’re happy to answer your questions, and we’d love to help you become more energy efficient today.