Power From the Sun Puts Money in Your Pocket
August 23rd, 2008 Categories: Selling Thoughts, Trends
Amendment 37 passed in Colorado in 2005 requiring major utility companies to obtain electricity production from renewable sources. This amendment allows Colorado homeowners to make money and support a green environment.
Xcel energy created a very generous incentive program for homeowners willing to install a solar electric system. The plan pays $4.50 per watt of solar electric power, but what is this translated? An average home uses 5000 watts to supply their needs, Xcel will pay a homeowner $22,500 towards a solar system.
Now the question is, so how much does a solar system cost? The average cost for a 5000 watt system is around $37,000 installed, take into account the Xcel rebate subtracting $22,500 and your out of pocket is now $14,000. This sounds like a lot of money and it is, but $14,000 pays your electric bill for the life of the system, which is an average of 40 years! Our federal government has it’s own incentive program offering a tax credit of 30% or up to $2,000 towards the price of the system. Now deduct $2,000 from the $14,000 and your cost is now a mere $12,000. Ok, so what’s the savings?
Not only are you saving on your energy bill but you are adding value to your home! Some believe that your home could be worth $7000 – $14,000 or more, go to energystar.gov. Energy in Colorado on average increased 5% per year. With a solar system and taking into account the yearly increases, just the system can save about $29,000 over 25 years (that’s the number of years a system is warranted.) Now add the increased value of your home to your savings. Wow, it just doesn’t get any better.
The environmental benefits must also be considered. A typical solar electric system will stop emissions of CO2 every year for the life of the system. As you can imagine this incredible rebate system is in heavy demand and there maybe efforts to reduce the amount of rebates in the future. Other factors to consider are your roof size, orientation and shading but talk to Solar experts who will answer more of your questions.
I currently do not have a solar electric system in my home but I have been researching the benefits and I can’t seem to find any disadvantages other than coming up with the initial investment. The ROI is just hard to beat! My home would be a perfect candidate with it’s orientation.
