Rent Your Solar Electricity

The problem for any homeowner considering solar generated power is the high upfront cost. Powering the average home using the sun’s energy requires fairly large solar panels. Panel systems usually cover most of the south facing roof of the house but the cost of the panels alone can easily amount to $10,000-$16,000. Once you add batteries, installation and other related costs you are looking at an initial investment of anywhere from $32,000 to about $50,000.

..today there are various loan, lease, rebate or grant systems that can offset part or all of the cost..

Many find that being independent of the local utility company justifies the cost. In rural areas, power outages are common; wind storms knock trees onto the lines and transformer blow outs are common. Most of these systems’ components are decades old and there is insufficient income or other incentives for the power company to upgrade. Having an ‘off-grid’ system at least provides a backup during times when the power is out.

Given that the pay back on home solar panel systems can be 20 years or more, some may still see the initial cost as too high compared with the inconvenience of the occasional blackout. However, today there are various loan, lease, rebate or grant systems that can offset part or all of the cost which means that start up costs cease to be a reason for not installing solar power.

Federal tax rebates or outright payments help to some extent and special legislation in most states allows utility companies to enter arrangements that can reduce the cost of solar power. Some contracts and systems allow for purchasing back any excess solar power. If your system generates more than your home needs, the difference goes into the utility grid and you receive a rebate on your bill.

Leasing..means the equipment can be returned after a set period of time. That opens up new options.

Many companies will subsidize part of the cost by offering homeowners who install a solar power system a discount. Not many companies will pay you to purchase less of their product or service but the crazy mixture of regulations in electricity generation gives the utility company a financial incentive to do just that.

There are a few companies just now who promise to lease equipment and that opens up the option of lowering the major share of the upfront cost of a solar system. Just as the total cost over time may be slightly higher when leasing a car; but lowering the initial investment from $50,000 to $1,000 puts a solar power system within reach of many more people.

Most people today own their home for less than seven years. That’s one of the major reasons mortgage companies can offer the flexible rates and terms that have become common in the past 15 years – this is another factor that affects the feasibility of installing a solar system.

Most people who only expect to own their home for five years or so; are going to be reluctant to sink $50,000 more into it. Installing a solar system certainly raises the value of a home but it rarely raises it enough to get a new buyer to cover the total cost. Leasing on the other hand, means the equipment can be returned after a set period of time. That opens up new options.

With changes in both solar technology and financial arrangements, solar power systems are becoming more attractive and investigating all the options may well put one within your reach.