More Affordable Solar on the Horizon?

Whether you’re motivated to join the “green” movement, envious of your neighbor or just simply excited by the thought of a $2 electric bill this summer, then you will be even more excited by recent news that “going solar” is predicted to get a lot more affordable over the next year or two.    

According to a recent article in USA Today, prices for rooftop solar systems, including installation, already have fallen 8% to 10% since October and are expected to drop another 15% to 20% this year.    Due to a surplus in supply from Solar Panel manufacturers, particularly overseas, it is predicted that prices will continue to drop.

In California, which accounts for nearly 70% of the U.S. solar market, a typical 4-kilowatt, $32,000 solar energy system cost a homeowner about $23,000 last year after state and federal incentives. This year, if prices sink as expected, that system is likely to cost $10,000 to $12,000.

Additional incentives are still available on both a Federal and State level which may make the dream of cheaper, greener electric a reality. 

For more information about solar prices, incentives and installation contact a local Solar contractor near you.

Federal: In late 2008, Congress extended the federal tax credit for solar systems by eight years, and waived a $2,000 tax cap in favor of a 30 percent tax credit. For most consumers, this makes putting a solar photovoltaic system on their roof thousands of dollars cheaper.

State: Incentives from the California Solar Initiative decline as the number of installed megawatts grows. Its residential incentives began at $2.50 a watt and have dropped several times since. Customers scrambled to get the $1.90-a- per watt rate before it fell to $1.55 a watt on Dec. 1. Other incentive programs are available for new homes, low-income housing and nonresidential systems.