If you're searching for a bright spot in a dismal economic climate, look no farther than your roof. The downturn is helping to make solar panels more affordable.
Manufacturers are cutting prices to move inventory. Uncle Sam is helping too. As part of the economic stimulus package, the federal government this year boosted tax credits to homeowners who switch to solar power. Together with state incentives, those subsidies could slash the cost of some systems in California by 50% or more. Some homeowners are banding together into buying groups for even bigger savings.
If you don't have a lot of extra cash lying around, innovative financing can help you spread your payments out as long as 20 years. Or you can take advantage of leasing deals to get panels on your home for little or no money down.
June was a record month for state rebate applications by California homeowners. Some of them are opting for the steady returns that come from lowering their energy bills rather than betting on volatile stocks or real estate.
So shake off the recession gloom and let the sun shine in. Here's how to go solar without going broke.
The basics
A well-designed solar-power system can reduce your annual electricity expense to zero over the 25- to 30-year life of the panels. Spending $20,000 or more on a system today amounts to pre-paying your power bill for the next three decades.
Is that a smart decision?
If your aim is to help the planet, the answer is a resounding yes.
If you're looking to save money, it depends.
Not all homes are good candidates. Generally, the higher your current electric bill and the sunnier your roof, the more solar makes sense. Still, payback can easily take a decade or more. You'll need to crunch some numbers.
Reputable solar installers will be glad to help you figure the payback period, lifetime savings and rate of return, free of charge. If you want a ballpark estimate without the sales pressure, check out the calculators section on the state's Go Solar California website. A particularly good one is the state's own Clean Power Estimator.
Once you've made the decision to go solar, your final cost will depend on four main factors.
* System size -- Solar modules typically are priced by the DC or direct current watt. A typical-size system in Southern California ranges between 4 kilowatts (4,000 watts) and 5 kilowatts (5,000 watts).
