Buying a Residential Solar Electric System For your Property

You should consider installing a Residential Solar System for your house to start saving money and lock in electricity rates for the future.

In today’s awful economic times, it is often difficult to see your way to spending money. But if you have $20,000 in a 401(k) that has just lost half its value, what is the point in saving if you are not sure of the outcome? By investing in Solar Photo Voltaic Systems, you are reducing risk and locking in your rate of return. For home systems with large utility rebates, Solar Electric Systems can be bought for as little as $3.50 per watt final cost to the homeowner.

The average retail cost of a Residential Solar PV System in Colorado is somewhere between $8 and $9 per watt. Most people cannot afford this type of cost, and it is still much more expensive then what they get from the grid now. In order to make solar feasible, the initial costs must be offset. This is done in many ways. For the individual homeowner there is a federal tax credit of 30% of whatever was spent on the system. For many Americans, this credit is larger than the total tax they owe, so anything they paid to the IRS for that year will be given back to them when they file their income taxes.

Another major subsidy comes from the power companies, assuming they are big enough to be regulated. For those living in rural areas, many of these types of subsidies are much smaller in amount, or do not exist at all. For major carriers, such as XCEL or Black Hills, there are two types of incentives that are paid to the homeowner. The first is usually about $2 per watt and is supposed to help defray the cost of equipment installation .

The second incentive offered by the power companies is the purchase of your “green tags”, which are earned because you have installed a solar electric system . This is directly related to the issues of cap and trade and forcing companies to pay tax on carbons, making your green tags worth more money. Generally, the power companies like to purchase the green tags from the homeowner at installation, thus getting the assumed lower price.

Is a Residential Solar System right for you? With today’s rebates, the uncertainty of the stock market and continuous utility price increases, you would be crazy not to spend money you have saved on a Residential Solar PV System