4-5 year pay backs are now typical because of record low solar panel prices. An additional 30% Federal tax credit is available through 2019. After the system pays itself back there is an additional 18% to 30% Annual ROI for the life of the system. Typically 25 to 30 years.
With energy prices continuing to rise with no end in sight, a solar system provides security to those living on a fixed income. Rather than being subject to ever increasing rates, your investment protects you from these rising energy costs. And the more power prices rise, the faster you save. Once your system is paid off, you can live care free knowing your power needs are covered year after year.
Your solar system, which is designed to last 25+ years, adds substantially to your equity value of your property. In this energy-conscious environment, home buyers are asking about the energy costs of owning a particular home. While other people in the neighborhood may be paying many hundreds of dollars a month on energy costs, you can provide to your realtor annual energy bills showing energy costs of less than $100 for the entire year! And while the system dramatically improves your home's equity value, you only pay a fraction of the cost by getting a 30% Federal tax credit.
While your solar system will clearly improve the equity of your property, your solar system is exempt from property tax increases. In other words the value of your system can NOT increase your local Property taxes.
Homeowners can deduct a full 30% of the total cost of the system from their Federal tax liability. That's right, it comes directly off what you owe the Federal government dollar for dollar. Federal tax credits can total $4,500 - $20,000! This non-refundable tax credit can be spread over several years, providing you with an excellent tax shelter. This has made solar more affordable than ever.
Business owners: in addition to the 30% Federal tax credit, you can also take advantage of MARCS 5-year accelerated appreciation. It also provides valuable energy cost controls which is critical to many businesses in these competitive times. Additionally, with PG&E’s Time of Use metering being forced onto all business owners, solar provides a deterrent to sky-rocking bills by producing power when power is most costly.