Buying Solar Panels Vs Paying For Electricity

When buying a house one of the most important things you should be aware of is how to get a mortgage solar panels can affect your mortgage qualification process.

Buying solar panels vs paying for electricity.

Residential electric utility rates are on average approximately 12 cents per kilowatt hour in the us. Cash buying your solar electric system outright is best. The below table converts solar energy production into greenhouse gas offsets using the metric converters 7 44 10 4 metric tons co 2 kilowatt hour of energy produced and the national average for solar panel production ratio 1 42 kilowatt hours watt of power. After you ve made the decision to go solar the next step is figuring out how to pay for it.

You get to use all of the solar power that your system creates which cuts down your utility bill with net metering. Whether you choose to buy or lease your solar panels will have a major impact on your system s long term value. How are you financing your solar panel system. Let s take a look why this might be the case.

Buying solar panels. Both buying and leasing solar panels have their own advantages and disadvantages. In exchange for using solar energy you pay a monthly lease payment to the solar company. Electricity costs over the years have fluctuated a great deal annually.

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. Solar panels generate their own power and can therefore greatly offset your monthly electricity bill if not eliminate it. In 2014 the us average residential household used 911 kwh per month and the average monthly electricity bill was 114 before taxes and fees. 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.

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. 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. If you re not buying your solar panels with cash the manufacturer may place a lien or uniform commercial code filing on your property to make sure you keep paying for them.

Let s do the math. 2 check average rates in your area on this map. The main practical distinction between buying and leasing a solar pv system is in ownership. High electricity prices are only bad if you re buying.

The higher your bill the more likely you ll benefit from switching. 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.