The amount of money you can save with solar depends upon how much electricity you consume, the size of your solar energy system, if you choose to buy or lease your system, and how much power it is able to generate, given the direction your roof faces and how much sunlight hits it. Your savings also depend on the electricity rates set by your utility.
In some cities around the country, solar is already cost-competitive with the electricity sold by your local utility. The cost of going solar has dropped every year since 2009, a trend researchers expect to continue. Not only are the prices of panels dropping, so are the costs associated with installation, such as permitting and inspection—also known as “soft costs.” All of SETO's funding programs are working toward improving the affordability of solar and making it easier for members to choose solar.
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It should also be noted that energy efficiency upgrades complement solar energy economically. Ouachita Electric’s HELP PAYS Program provides energy audits to our members at no cost. Upgrades to your home, such as air sealing, duct sealing, insulation, LED lighting, and new HVAC units, help to reduce the total energy consumption of your home.
If you prefer to buy your solar energy system, solar loans can lower the up-front costs of the system. In most cases, monthly loan payments are smaller than a typical energy bill, which will help you save money from the start. New homeowners can add solar as part of their mortgage with loans available through the Federal Housing Administration and Fannie Mae, which allow borrowers to include financing for home improvements in the home’s purchase price.
Buying a solar energy system makes you eligible for the Solar Investment Tax Credit, or ITC, which is a 30% federal tax credit on your system that is available through December, 2019. In 2020, the Solar Investment Tax Credit will be 26%.