4 Reasons Why Now is the Time to Go Solar

There have been great strides in panel and manufacturing efficiencies in the last few years. Major decreases in cost and increases in panel output have made residential solar a no-brainer for countless Arizona homeowners who desire a cleaner and more affordable energy solution. As panel prices continue to decrease, it’s common to think that waiting until they’ve bottomed out will ensure the best ROI. Still, panel price alone is not the only factor contributing to the financial return from residential solar investment.

Other factors, such as temporary federal and state tax credits, have a much greater impact on the final equation and, in most cases, greatly outweigh the financial benefits of waiting. Here are four ways that not waiting will dramatically improve the ROI of your solar investment.

1. Reduction of net metering

Taking advantage of net metering and other energy buyback programs is a great way to speed up the ROI of your solar energy investment. These programs credit solar owners for any surplus electricity their panels generate and send back to the grid. Net metering rates have been decreasing with recent utility rate changes, and we anticipate that trend will continue over the next few years until these buyback programs are virtually gone. Fortunately, people who go solar can lock in their buyback rates for an average of ten years (depending on utility). Going solar now will allow you to take advantage of this significant financial incentive before it's gone.

2. Install in fall and winter to have energy credits available by summer

When you push back more energy to the grid than you consume, you have the potential to earn energy credits that can help offset your high-usage months during the summer. How credits are calculated and offered differs by utility, but in general, the earlier you install your solar energy system, the more time you’ll have to bank energy credits for use when the temperature increases. With March quickly coming to a close, we can already feel the temperatures starting to rise. If you want to ensure your system is up and running in time to deliver maximum offset of your expensive summer electricity bills, going solar now is crucial.

3. Utility rate changes

• New APS plans - APS recently moved all non-solar customers to new rate plans (existing solar customers were the only group allowed to be grandfathered into their old plans). Going solar is a great way to avoid the financial impact of these new rate changes. As always, the calculation is unique to each family, so the best approach is to consult a solar expert for a customized quote.
• SRP $250 demand manager rebate - Currently, SRP offers a $250 rebate to qualifying parties who install a demand management system and switch to the Customer Generation Price Plan. Combining a demand manager and solar is a great way to reduce electricity costs in SRP territory dramatically. Combine the demand manager/solar package with federal and state tax incentives for even more savings.

4. Importance of multi-month timeline

Just as Rome wasn’t built in one day, a residential solar energy system isn’t installed overnight. If you wait until the weather is hot to start your solar journey, the worst of the Arizona summer will most likely be over when your system is installed and commissioned. Going solar now ensures you’ll offset your highest energy consumption by summer, saving you money while keeping your house cool.

If you're considering going solar, now is the time to act! Contact one of our solar experts for a custom solar quote. If you aren't ready for a quote,  download our complimentary whitepaper: Is Solar Right for You?