You may have heard that the price of solar panels has dropped considerably in the past ten years. In fact, they’ve dropped by 75%. Whether you are motivated by saving money, freeing yourself from foreign energy sources or reducing your environmental impact, 2019 is a great year to consider installing solar. Here’s why:
1) Federal tax credits change at end of 2019: The renewable energy tax credit allows US taxpayers to deduct 30% of the cost of installing solar from their federal tax bill. It applies to residential and commercial installations alike and can mean a savings of up to $5,000 or more for individual taxpayers. In 2020, the credit begins to step down to 26%, followed by 22% in 2021 and just 10% in 2022.
2) Maximize your utility benefits: In Maine, residents can sell back excess power generated by their solar panels through a process called net metering and receive credits from their local utility. These credits can then be applied toward the electricity that they draw from the grid when they need more power than their solar panels are producing. Historically, Mainers received a 1:1 credit for both the transmission & delivery (T&D) and on the supply of energy for each kWh they generated and sent to the grid. In 2018, the Maine Public Utilities Commission adopted rules that resulted in the T&D portion dropping by 10% each year. So, those who installed solar in 2018 received a credit worth 95% (full credit for the supply of energy and 90% for T&D), and in 2019, Mainers would receive a credit worth 90% (full credit for supply and 80% of the T&D). And so on. However, new legislation proposed this spring would return Mainers to a 1:1 credit.
3) Return on investment: According to our friends at ReVision Energy, solar can provide a better return on investment than the stock market! While the actual return varies based on the site’s solar access, local electricity rate, and available incentives, most solar investors see a 25-year return of 8-12%. In addition, when you sell solar back to the grid, you help your local community by reducing stress on the electric grid. A 2015 study conducted by the Maine Public Utilities Commission found that the market value of a kilowatt hour sent back to the grid was $0.14, and that each 1 kilowatt of solar provides around $4,000 of market-based savings for all grid ratepayers over its lifetime (and more than double that in environmental benefits.)
4) Increased property value: Several recent studies have shown that solar increases property value. In fact, the National Bureau of Economic Research found that solar PV systems add 3.6% to the sales price of a home. This was echoed in a study by the Berkeley National Laboratory, which found that home values in CA increased by $5,911 for each 1-KW of solar installed. And a Colorado Energy Office study found that the presence of solar also decreased marketing time.
5) Solar can power your car: Electric vehicle (EV) usage is predicted to steadily increase over the coming decade. In 2018, the US Department of Energy calculated the e-gallon rate (the equivalent cost of driving an EV as compared to a gas-powered vehicle) to be just $1.16/gal. If your electricity comes from solar, the e-gallon drops to an equivalent of $0.71/gal. With a national average cost of gas hovering just under $3/gallon, it’s easy to see how much an EV powered by solar can save you!
6) Solar works in Maine: Aside from being an abundant resource that is 100% renewable, Maine is also well suited for solar energy. According to the National Renewable Energy Lab, Maine’s annual solar resources are similar to those found in Texas. You may be surprised to learn that we can even produce solar power in the winter.
7) Immediate action to address climate concerns: More than 60% of the electricity generated in Maine comes from natural gas and oil, and 70% of Maine homes rely on oil for their primary heat. Our region’s reliance on fossil fuels and the resulting carbon pollution threaten our tourism industry, our marine fisheries industries and our way of life. Making the switch to clean, renewable solar energy is one very big step we can take today to address climate concerns.
And finally, as our friend Sam Zuckerman from Maine Solar Solutions so aptly put it, “The best time to plant a tree is 20 years ago. The second-best time is today.”
Special thanks to ReVision Energy, InSource Renewables and Maine solar Solutions for contributing to this article.
