How can I afford solar (or any other efficiency upgrade, for that matter)?
The real question — can you afford not to? Prices for solar electric systems (PV) have dropped 50% in the past five years and the low prices, combined with the availability of state and federal incentives, make it a great time to consider investing in solar PV. Solar electric systems have virtually no maintenance costs and enjoy a life expectancy of 40+ years.
Before we go into the details about how affordable solar electric can be, first a reminder that the best (and first) investment you should consider is to make sure your home is air sealed and vented properly. When you’ve done what you can in that arena, it may be time to look at solar.
So back to the affordability of solar. Federal tax incentives currently offer a tax credit of 30% of the cost of the project. Add to that the available Maine state rebates of up to $2000 and you are looking at total incentives of about 40% of the project cost. Financed over ten or fifteen years, it’s reasonable to expect that your monthly loan payment will be equivalent or less than what your monthly electricity bill was before installing solar electric. One local solar installer provided us with the following scenarios.
Assuming you have a good site for solar, if your monthly electric bill is $50, you would likely need a twelve panel system to support your electricity needs (2.94 kW). At the time we went to press, the cost of this system fully installed is approximately $11,500. After incentives, your cost comes down to just $6600. Spread that out over a 10-15 year loan and your monthly loan payment could be about $50. If your monthly electric bill is $80, you would likely need a twenty panel system to support your electricity needs (4.9 kW). The cost of this system fully installed is approximately $18,000. After incentives, your cost comes down to just $10,800.
A final note, similar state and federal incentives are available for residential wind power (and geothermal). See page 64 to learn about community wind opportunities.
