The Benefits of Solar Power

Lower Electricity Bills

Your solar power system will significantly reduce your electricity bill. Depending on the size of system installed, you can offset all of your energy usage or just part of it. During peak sun hours you will most likely be generating more power than you use. During this period, excess power you generate will flow into the grid. When this happens, your utility meter will spin backwards indicating that you are supplying electricity to the grid and getting credit for it. Fortunately, peak sun hours more or less correspond to peak energy usage of which is charged at the highest rate. As a result, this energy you produce and supply to the grid should easily offset your other usage during the day. Any credit you build up will accrue throughout the year.

Environment

Having a solar power system is an excellent way to become proactive in protecting our environment. When your system is generating power for yourself and others, you are eliminating the need to burn fossil fuels to generate this electricity. Fossil fuels are the number one contributor to pollution and the destruction of the ozone layer. Solar energy is clean and non-polluting. The installation of a typical residential solar system has the equivalent effect of planting an acre of trees, or removing 6600 lbs of CO2 from the atmosphere every year. Over the course of 30 years, this would equate to 198,000 lbs of pollutants removed from the atmosphere.

Fixed Rate of Future Power Costs

Utility rates are continually on the rise. In fact in 2006 the high tier of electricity rates jumped 30-60% in one year. As shown on the graph below from the California Public Utility Commission, average electricity rates have increased from approximately $0.02/KW-Hr in 1970 to $0.16/KW-Hr in 2001. That is an average rate increase of 6% per year. By investing in a solar system, you can stabilize your electricity costs and shield yourself from continued utility rate hikes.

Government Rebates and Federal Tax Credits

California Solar Initiative (CSI) Rebate

The California Solar Initiative is a state run rebate program to encourage residents and businesses to go solar. The current rebate amount is $2.20 per Watt, or $2200 per KW. In other words if you get a 5KW system, you would get a rebate of $11000. The amount of rebate decreases in monetary steps as more and more solar systems are installed across the state. Upon receiving a deposit for your system, Greenway Solar will submit a reservation request for your rebate amount. When your system has been permitted, installed and is operational, the rebate claim will be submitted to your utility provider for payment. Receiving this payment is currently taking between 30-60 days. As many people are going solar and the rebates are decreasing accordingly to the aggregate amount installed, the best time to go solar is now!

30% Uncapped Federal Tax Credit from Jan 1st, 2009!

Previously the Federal Tax Credit has been capped to $2000 for residential solar, but as of Jan 1st, 2009, this 30% tax credit is uncapped. This means that the federal government will pay for 30% of the system cost of your solar system in the form of a tax credit. This shows the government's commitment to renewable energy and is another great benefit to going solar now.

Increase the Value of Your Home

Decreasing the running costs of your home naturally makes the value of your home increase. According to the National Appraisal Institute, the value added to a home with a solar system is 20 times the value of the electricity costs saved in the first year. For example, if you saved $2000 in the first year on your electricity bill, which is typical savings for a standard residential solar system, your property will have added value of $40,000.

Solar Power Investment is not Subject To Property Tax

California has ruled that even though your solar system has added to the appraised value of your home, it will not be subject to the assessed value. This means your solar system is not subject to property tax, and this tax exemption is for the life of your solar power system! If you install a pool, or have an extension to your property, your property tax will increase, but not if you add a solar system. See California Revenue and Taxation Code, section 73, for further details.

Solar Power is Reliable

A solar system does not have any moving parts, as a result, is inherently very reliable. Solar modules typically come with a 25 year manufacturers warranty, and the installation of your system comes with a 10 year warranty. In fact many of the the solar (photovoltaic cells) on the NASA satellites launched in the 1970's have outlived their life expectancy and are still going strong. There is a good chance you solar power system will be producing substantial power for 30-40 years.

Great Return on Investment

A solar system is a smart investment from both an economic and an environmental standpoint. With the state and federal tax credits, you will get a 40%-60% savings off the initial purchase price of your system in the first year, depending on your system size, efficiency, and rebate tier. You will reduce you utility bills dramatically, and protect yourself against rising utility rates. You will increase the value of your property and not be taxed on this added value. Your system will typically pay for itself in 6-10 years depending on the size and efficiency of the system. Once it’s paid for, you will continue to generate free electricity for many years.

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