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The recent stock market collapse and subsequent Congressional bailout have brought a collective groan to pocketbooks across America and financial markets around the world. Afraid for their savings and jobs, and worried for the future of their homes and college funds, this may not seem like the time for homeowners to invest in expensive improvements.
The $700B corporate welfare package was passed through Congress, much as previous legislation overreached the bounds of government on the pretext of crisis. Stuffed with pork and served with theater, this move will haunt the world economy for years to come.
There is a silver lining to the dark storm cloud rising, however: the alternative energy tax credit cap has been quadrupled to $8000, bringing the effective cost of PV installations down by 1/3-1/2. The credit applies to 30% of the total installed cost of new residential systems.
For California residents, this can be added to the $2.50 credit to make solar a truly affordable alternative to the grid. Other states have different rebate programs. Depending on where you live and how much tax you typically pay, the cost of a grid-tie solar system might be offset up to 50%.
Contact a representative at Real Goods Solar for more information on solar installation and tax rebate credit incentives available where you live.
Fed up with paying in to a private monopoly which is still holding us hostage with pollution-generating power plants? Tired of talking about the energy crisis and ready to invest in a future off the grid? Good for you.
Now that you’ve decided to go solar, you face some tough choices about finances. The power generated by the Sun is 100% free, but the photovoltaic collectors which convert this energy still represent a substantial investment. A little sticker shock is common among homeowners who have estimated the household electricity use, and found that their planned solar array will cost as much as a new vehicle.
The average home practicing energy-conscious conservation is using 5-7 Kwh/ day. In order to depend entirely on solar power, this home might need about 2 or 3 KW of PV module, at a jaw-dropping cost of at least $5,000 per kilowatt. Grid-tie installation can often cost up to one-third of the total, and a state-of the-art inverter, backup generator, and storage battery cells can bring the total into the stratosphere.
The math may be daunting, but through a little creative conservation, applicable tax credits, and financing from lenders friendly to environmental projects, most residential solar installations become a practical reality. Some homeowners are pleased to discover that their home can be solarized for even less than their current electricity bill.
Most homeowners are aware of Federal alternative energy tax incentives of $2,000 and 0% interest bonds which may offset part of the cost, as well as various state programs. These can bring down the total cost of the project, but most middle-class homeowners will still be tempted to balk at committing a year’s salary to a single purchase.
The answer is the same mechanism which made it possible for you to own your home in the first place: a loan. While the notion of going even further in debt may not appeal at first, it bears pointing out that a solar or wind system begins paying for itself from the moment of installation, by reducing or eliminating the monthly energy bill.
By distributing the cost of PV modules, invetrters, and grid-tie installation across 15-30 years, the monthly cost of home electricity is locked in near the current rates, until the loan is paid and the energy becomes entirely free. Another key consideration is that the investment in a solar or wind electrical syatem adds value to your property-an added 20/watt, according to current assessment guidelines.
In addition to hedging against likely hikes in local energy prices, adding solar power is a wise investment in home improvement. Since solar homes are still reasonably rare on the market, and increasingly in demand, alternative energy amentities may also help a home sell more quickly…an important consideration in a sluggish real estate market.
Of course, your bank may not be cutting-edge enough to recognize this. The lending market is quickly growing conservative in the wake of recent foreclosure fiascoes, and some agents may fear risking the primary mortgage by adding a second one.
Fortunately, the green movement is spreading into all corners of the economy, and by choosing a lender such as Cal Green Lending who specializes in financing environmental projects, you can be sure that your application will be reviewed by lenders who comprehend the viability of alternative energy.
Cal Green Lending arranges loans to qualified alternative energy installation projects for both residential and commercial properties nationwide. Visit them to see if they can help make your solar dream a reality.
Cal Green Lending has been awarded the “Green Leap Award” from Holy Solar for making an innovative leap in the approach to alternative energy.