Solar power can save you a great deal of money on your electricity bills every month. However, an array to attribute 100-percent of your current usage could cost quite a bit of money. This is especially true if you have a large family who is integrated with technology in various forms. Since the cost to implement solar arrays is so extravagant for large areas, can financing be an option to afford such construction?
1. 10 Years
Some financing companies will advertise that you could own your solar array in as little as 10 years. Although this is true, are the payments to the financing company enough to offset what you would give to the electric company? In many areas such as New York, you could pay the financing company more than twice what your electric bill would have been. While you will own your solar array in 10 years, you spent as much money as 20 years to the electric company. It would be two decades before you truly broke even.
2. Two Payments
If you’re only interested in compensating for a small percentage of your electrical needs from the power grid, financing could be more of a viable option. However, you would still be paying the electric company and the financing company for the next 10 years. Again, this could cost you a great deal more than what your regular electric bill would be.
3. Credit Difficulties
Financing your solar array could incite a credit report that can alter the amount of money you pay per month as well. If your credit history is less than ideal, you could be paying a higher interest rate depending on the financing institution. Unless you can afford to cover such an increase in your monthly payments to bill collectors, you may simply not have enough money to cover everything on your plate.
Technology tends to quickly become antiquated. This can be seen easily in computers and mobile devices. Although they are efficient and state-of-the-art when you first purchase them, a newer and more efficient device is released six months later. Will your solar array see the same trends? Although it may be the most efficient system on the market, it could become obsolete by the time you submit your final payment to the financing company. However, financing could give you the technology for self-sustaining power immediately without having to save up enough money for the initial installation.
5. Having the Money
Although there may be negative aspects to why financing a solar array could be detrimental, it can offer you an installation of a renewable energy source within a short amount of time. If you’re in a financial position to pay the extra money per month, then financing could be a viable option for you. However, are your power demands going to be equal in ten years down the road as they are today? While you family size may decrease and your home utilizes far less power than it once did, your payments to the financing company will remain the same. If your system is grid-tied and the power company pays you for providing power back into the grid, this could be a profitable situation for you.
Although the costs of solar manufacturing are decreasing as time marches on, the cost to implement a large array for your home could still cost hundreds of thousands of dollars. Incentive programs, rebates, and tax credits could offset this amount greatly, but the financing could still be outrageously high for your location. When it comes time for you to implement solar power, compare your overall costs versus what you will pay the electric company over time.
What are your thoughts on residential solar power? Would you consider it for your home?
This is a guest post by Liz Nelson from WhiteFence.com. She is a freelance writer and blogger from Houston. Questions and comments can be sent to: liznelson17 @ gmail.com.