What You Need to Know About Home Solar Energy
What you need to know about home solar energy is that learning what’s important is all that matters. We will go step by step about what’s most important and what may not be important about solar energy. From the start, it’s important to understand how electricity is measured. Take a quick glimpse of your power bill and you see they charge by the kilowatt-hour. That’s important information because home solar systems are measured by kilowatt-hour production. Determining your average daily and monthly kilowatt usage determines the correct size solar system.
How Homeowners Purchase Home Solar Matters
Financing plays a key role in going solar. New homeowners can even include solar costs in their mortgage through loans available via the Federal Housing Administration and Fannie Mae.
Although financing plays a key role in going solar, paying cash for it, offers the best return on investment. The most important factor is how fast you can pay it off because a home solar system pays real dividends every month.
It’s more difficult to make money from solar if the system takes more than 10.5 years to break even from what you would have paid the power company.
It's Important to Have a Keen Understanding of the ITC Tax Credit
Disclaimer: You Must Seek Expert Advice for the ITC Solar Tax Credit Because No Two Homeowners’ Income Taxes are the Same. Consult with a Tax Expert to Determine if You Qualify for the ITC Tax Credit and How Much You Qualify for Per Year.
The ITC Tax credit isn’t as difficult as many make it sound. So long as your annual federal income taxes exceed the amount of your tax credit; You can apply the ITC tax credit when you file your income taxes for the year of purchase.
The ITC tax credit has been difficult for some homeowners because the ITC tax credit can easily be misconstrued as a rebate when it isn’t. The tax credit does not have to be claimed in a single year of taxes, it can be spread out for up to 5 years. The most important thing in this step is to be certain what you qualify for before purchasing solar. The ITC tax credit is a cash bonanza for homeowners who qualify for it.
Pick a Solar Installer That's National
A local solar installation company may sound like a good idea, but it’s proven to be a nightmare for some. Many solar companies have gone out of business because it’s an expensive business model with small margins.
On the other hand, a premium national solar installation company isn’t going anywhere but up. Your Solar Advocate’s national partner uses a state-of-the-art platform that brings Certified solar experts together in one place.
Unlike local solar installation companies, our national partner has eliminated the bloat that small solar companies endure. Our national partner has installed over 25,000 home solar systems and generated more than a billion dollars in sales.
Trim the fat, have a rock-solid solar installer with staying power, get the highest quality solar panels for the lowest cost, and have warranties with backbone, that’s what Your Solar Advocate offers.
Now You Know What You Need to Know About Home Solar Energy
Buying Solar Explained in Easy-to-Understand Charts Below
The primary objective is to shorten the time it takes to offset the cost of
solar with what you would have paid the power company anyway.
This Chart Is When You Pay Full Retail Cost for a Home Solar System
| System Size | Retail Cost | Tax Credit | Net Cost | Production (Monthly Power Bill) | Break-Even Point |
| 7K Solar System | $23,500 | $7,050 | $16,495 | $150 a Month in power | 9.2 Years |
| 9K Solar System | $29,250 | $8,775 | $20,475 | $190 a Month in power | 9.25 Years |
| 11.7K Solar System | $39,000 | $11,700 | $27,300 | $250 a Month in power | 9.20 Years |
Disclaimer: You Must Seek Expert Advice for the ITC Solar Tax Credit Because No Two Homeowners’ Income Taxes are the Same. Consult with a Tax Expert to Determine if You Qualify for the ITC Tax Credit and How Much You Qualify for Per Year.
High-quality solar panels can last 30 years or more, Solar Panels have no moving parts. Regular maintenance contributes to their longevity. Major Manufacturers Warranty Solar Panels for 25 to 30 years.
This Chart Is Your Solar Advocate Cost for a Home Solar System
| System Size | Wholesale Cost | Tax Credits | Net Cost | Production (Monthly Power Bill) | Break-Even Point |
| 7K Solar System | $19,250 | $5,775 | $13,475 | $150 a Month in power | 7.5 Years |
| 9K Solar System | $24,750 | $7,425 | $17,325 | $190 a Month in power | 7.6 Years |
| 11.7K Solar System | $32,175 | $8,365 | $23,810 | $250 a Month in power | 7.9 Years |
A Typical Solar Company's Proposal
| Add-Ons To Every Solar Proposal | Cost of Add-Ons |
| The Cost of Salesperson | $2500 |
| Sales Manager | $1000 |
| Proposal Builders and Permitting Department | $1000 |
| Overhead: Rent, Auto Insurance, Vehicles, and Utilities | $1000 |
| Cost of Leads and Marketing | $1000 |
| Points for Low-Interest 20-Year Loan Terms (Frequently Hidden Cost) | |
| Solar Panels, Inverter, Installation | $17,000 |
| Solar Company Profit | |
| $3.25 a Watt or Lower for a 7K Home Solar System Total | $23,500 |
Disclaimer: You Must Seek Expert Advice for the ITC Solar Tax Credit Because No Two Homeowners’ Income Taxes are the Same. Consult with a Tax Expert to Determine if You Qualify for the ITC Tax Credit and How Much You Qualify for Per Year.
Your Solar Advocate Cost Savings
| Add-Ons To Every Solar Proposal | Cost of Add-Ons |
| The Cost of a Salesperson | $500 |
| Sales Manager | |
| Proposal Builders and Permitting Department | $1000 |
| Overhead: Rent, Auto Insurance, Vehicles, and Utilities | $750 |
| Cost of Leads and Marketing | |
| Points for Low-Interest 20-Year Loan Terms (Frequently Hidden Cost) | |
| Solar Panels, Inverter, Installation | $17,000 |
| Solar Company Profit | |
| Your Solar Advocate Target Price $2.75 a Watt or Lower for a 7K Home Solar System | $19,250 Tax Credit – $5,775 The net Cost Is $13,475 |
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