7 Key Steps to Considering Solar
Ready to introduce rooftop solar panels to your home? Tens of thousands of Arizonans have already installed panels to make electricity for them, and falling prices and new financing options continue to draw consumer interest. Here are 7 key considerations to see if solar is the right fit for you!
Trees
Do you have a lot of tree coverage around your roof? Solar panels need direct sunlight, so homes heavily shaded by trees are not good candidates. Some homeowners cut down trees to accommodate solar panels and in some cases, a home is only partially shaded, so panels can be installed in ways that avoid this issue. Another option is to add a few extra panels to make up for the lost production.
Your home’s efficiency
Adding solar panels to a home that has leaky air ducts, poor insulation, 70-year-old windows or other inefficient features doesn’t make a lot of sense. Often those repairs and upgrades are less expensive and more cost-effective than adding solar. A home that is energy-efficient will require fewer solar panels to offset a major portion of its energy needs.
Roof Condition
New shingles should be placed before or during the installation of solar panels. It can cost $2,000 or more to remove the solar panels if you end up having to replace your roof. So waiting to install the panels, or proceeding with the new shingles, is the best way to go.
Do you have an HOA?
According to the Department of Energy, Senate Bill 1254 specifies that a homeowners association may not prohibit the installation or use of solar-energy devices (panels and associated devices). An association may, however, adopt reasonable rules regarding the placement of a solar device if those rules do not prevent the installation of the device, impair the functioning of the device, restrict its use, or adversely affect the cost or efficiency of the device. The bill also grants reasonable attorney fees to any party who substantially prevails in litigation against an association's board of directors.
Lease or Purchase?
Homeowners who want to generate their own electricity, but want to put little to no money down, often turn to leases. The benefit is that another company owns and maintains the panels, but customers will save less money over time making monthly lease payments. Also, make sure that lease doesn’t escalate over time. Purchasing has recently become popular with the 30% tax credit with the option to put little to no money down, mimicking a lease product. However, with a purchase you now own your solar!
Are you considering selling soon?
Leased panels don’t add value to a home resale, because they are not part of the home. Anyone buying that home will have to qualify to take over the lease, or you’ll have to pay a penalty to end the lease prematurely. With a solar purchase, according to the Department of Energy, you will likely increase your home’s value. A recent study found that solar panels are viewed as upgrades, just like a renovated kitchen or a finished basement, and home buyers across the country have been willing to pay a premium of about $15,000 for a home with an average-sized solar array. Additionally, there is evidence homes with solar panels sell faster than those without.
Federal Tax Credit
Finally, consumers should understand the federal investment tax credit for solar. The federal solar tax credit, also known as the investment tax credit (ITC), allows you to deduct 30 percent of the cost of installing a solar energy system from your federal taxes. The ITC applies to both residential and commercial systems, and there is no cap on its value. Thanks to the ITC, the average Valence customer saves over $12,000 on the cost of going solar in 2019. The tax credit won’t be around forever though, so if you are considering if solar is the right fit for you, schedule your free consultation today!