How much should you pay for solar power?
Solar power systems are sized in watts. The more power the system produces, the more the system will cost. Currently, the installed cost of solar panels runs between $7-$9 per watt. A 5 kW system would cost around $25,000-$35,000. That cost is before tax credits and incentives that can reduce the cost of going solar. Should you choose to install home batteries as well, your cost will be even higher.
Solar power tax credits, incentives, and rebates
The most well known and misunderstood tax credit for solar is the Federal Tax Credit. Currently, you can deduct up to 30% of the cost of your solar system from your taxes. What many people don’t understand about the Federal Tax Credit is that to be eligible to receive it, you must owe taxes to the Federal government. You can deduct the full amount of the tax credit from your taxes for three years from the date your system began operating. Thus, if you pay $2,500 in tax on your annual income, you’d be able to deduct up to $7,500 over the course of three years if your tax credit was worth that much. Below are the states in the Freedom Forever service area that offer incentives for going solar.
Arizona tax credits and exemptions
In Arizona, you can get a tax credit for 25% up to a maximum of $1,000 of the cost of the system. If the credit is greater than what you owe, you can continue to deduct it for up to five years. Solar power systems are exempt from state sales taxes, and the value they add to your home is exempt from property taxes.
California utility rebates
The Los Angeles Department of Water and Power and the Sacramento Municipal Utility District offer rebates of $0.20 to $1.25 per watt based on the estimated performance of the system. Both utilities calculate the estimated performance and give the homeowner a one-time payment for 20 years of production.
Colorado Solar Renewable Energy Credits
Solar Renewable Energy Credits (SRECs) are tax credits. The credits you may be eligible for depends on the solar system you buy. Colorado SRECs are complicated, it’s best to consult with solar energy expert about the system you plan to buy
How much do batteries add to the cost of the system
Batteries add about $5,000 to $7,000 to the cost of the system depend on their size. That cost doesn’t include the cost of installation, just the cost of the batteries. Batteries also require that your solar power system use a special inverter made for batteries. Batteries make sense for homeowners that pay high Time-of-Use (ToU) rates for power in the evenings. A perfect example is homeowners served by San Diego Gas and Electric. That company’s ToU peak rates are from 4 PM to 9 PM. The batteries would power the home during those peak rates.
Save on solar with Freedom Forever
Freedom Forever makes it easy to go solar with flexible zero-down financing, PPAs, and leases. Whichever way you want to go solar, Freedom Forever has you covered. We also have our guarantee. We guarantee the amount of power your system will produce for 25 years. If it ever breaks or underperforms, we reimburse you for any lost energy savings. Freedom Forever is the only solar power installation company to guarantee the power output of your solar power system for 25 years.