Today's Solar Economics
At Real Goods, we've been selling solar since 1978, when the price was well over $300 per watt or more than $6 per kWh (kilowatt-hour). Today, with state incentives, that $6 per kWh cost has come down to around $0.09 to $0.12/kWh, a 99% drop! What this means for you is that you'll be guaranteeing yourself this electrical rate for the next 30 years, over which time we all know electrical rates from the utilities will be sharply increasing.
What do these lower prices and governmental incentives mean for the average homeowner? We are frequently seeing 15% annual returns on investments (ROI) — far better than the stock market, bond market, money markets, and long-term CDs. According to the National Appraisal Institute (Appraisal Journal — Oct. 1999), your home's value increases $20 for every $1 reduction in annual utility bills.
This means our 3.0 kW Photovoltaic (PV) system increases your home's value by $17,520 and costs you less. So you're money ahead on day one! Be sure to view the bottom line at the bottom of this page.
State and Federal Solar Incentives
Several states currently offer rebate programs. Real Goods currently installs PV systems in California and Colorado.
In addition, there is a further Federal tax credit of $2000 for your renewable energy system (solar or wind) after rebates. This comes directly off of the amount of income tax that you owe. For businesses, there is also a 30% Federal Investment Tax Credit that can be carried forward 15 years or back three tax years. The “MACRS” five-year accelerated depreciation schedule is also applicable. For businesses, we have often seen paybacks as low as three years and internal rates of return in excess of 25%.
Net Metering
Net metering laws mandate that your utility company purchase your excess power at standard retail prices. Every kilowatt-hour (kWh) of solar power not consumed by your household is sold back to reduce the electric bill by the same kWh.
Further, many California utilities have tiered rate structures to encourage energy conservation wherein the more electricity one consumes, the higher the price one is charged. Further, the new California Solar Initiative (CSI) program requires that you use "Time of Use" metering. Click here for more information on these programs.
Your Property Tax Won’t Go Up
Great news for your cash flow, you’ll be saving hundreds or even thousands of dollars every year from your new solar system, increasing your property’s resale value by $17,520 due to your utility bill savings, and not adding even one penny in property tax!
Financing Your Solar System
Real Goods has researched numerous quality home equity lenders and other loan sources in California. If you choose not to self-fund your solar system, there are many cost-effective alternatives. Many lenders are open to financing solar systems for less than prime rate. Contact Western Heritage at 1.800.656.2693 ext 117 or CitiMortgage, available through Sharp Solar at 1.866.667.4916.
For first mortgages, refinances or construction loans call 1st Priority Financial at 707.485.0318.
Or check with your local bank for no-cost, no-fee equity line loans.
You Only Pay Us The After-Rebate Price, Without Waiting For The Rebate!
Based upon your projected installed system costs, Real Goods will maximize the rebate and tax credits you’re eligible to receive on your new solar system. Our solar experts will fill out all the paperwork and collect the rebate on your behalf.
Fetzer Vineyards - Hopland, California
“The installation of photovoltaic panels on the Fetzer Vineyards Administration Building marks another milestone in our continuing quest toward sustainability of our winery. We are especially pleased to have our neighbors and friends at Real Goods oversee the project.”
Paul Dolan, President
Fetzer Vineyards
Nish residence
Fairfield, California
"Thanks to Real Goods, we’ll never have to pay another penny for electricity again!"
Kim Nish