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Today's Solar Economics

At Real Goods, we've been selling solar since 1978, when the price was well over $300 per watt. Today, with state and federal incentives, that cost has seen a 99% drop! What this means for you is that you'll be guaranteeing yourself a low, fixed, electrical rate for the next 30 years, over which time we all know electrical rates from the utilities will be sharply increasing. 

What Solar Can Do for Your Pocketbook

• Lock in your electricity rates for 30 years – PG&E and other utility company’s rates have been steadily increasing by about 6.7% a year, with a 30% jump in the last three years alone.

• The pre-tax IRR over 25 years in most cases averages around 10-15% — far better and far safer than the stock market, bond market, money markets, and long-term CDs.

• Increase your home's value by $20 for every $1 reduction in annual utility bills, according to the National Appraisal Institute. And, your property tax won’t increase even one cent.

• Since you only pay us the After-Rebate Price, without having to wait for your state rebate to process, you experience the savings right away!

The average homeowner will spend more than $100,000 on electric bills over 25 years. Why rent when you can own? Following is an overview of the costs associated with purchasing a solar system. The upfront installation costs are far cheaper in the long run than paying increasing electrical rates, and the value of your home increases more than the cost of the system with no additional property tax assessments. Here’s how it works:

The net cost of your solar system will be determined by 3 variables:

• Solar System Size (kilowatts)
• State Rebates
• 30% Federal Tax Credit

The following examples reflect the cost of solarizing an average home, which for us is about a 5 kilowatt DC solar system in either California or Colorado. Depending on your electricity usage, this can either offset 100% of your bill or a majority of the most expensive electrical rate tiers.

California

Colorado

*This number may vary slightly. Amounts depend upon a number of variables (roof type, shading, type of panel, etc.). Our sales technician will provide you a FREE personal analysis.

How does this compare with the $100,000 you would pay to your utility company over 25 years? An incredible deal. 

State and Federal Solar Incentives

State and federal benefits can reduce the cost of your solar electrical system by 50%!

Federal Tax Credits:

In the fall of 2008, the federal tax credit for solar increased dramatically. You can now receive a federal tax credit of 30% of net system cost after state rebates are deducted (applies for both residential and commercial solar installations). This credit comes directly off the amount of income tax you owe. For businesses, the tax credit can be carried forward 15 years or back 3 tax years, and we often see paybacks in as low as 5 years and pre-tax internal rates of return in excess of 25%. The “MACRS” five-year accelerated depreciation schedule is also applicable.

State Rebate Program:

Real Goods currently installs solar systems in California and Colorado, where rebate programs vary from each state and each utility.

In California, the California Solar Initiative rebate per watt is currently at $1.90 for residential, $1.55 for commercial installations. This rebate goes down as more and more people apply for solar. On average, the state rebate for California residents is usually about 14-19% of the system cost—this is a huge help!

In Colorado, Xcel Energy's Solar*Rewards Program provides an incentive of up to $3.50 per watt for solar systems ranging from 0.5 to 10 kilowatts. The incentive is a $2 per watt rebate and a Renewable-Energy Credit (REC) payment of up to $1.50 per watt. The REC payment can be adjusted up or down, based on the system's expected electricity output.

Real Goods will front the rebate so there’s no waiting!

Net Metering

Depending on your energy consumption and amount of sunlight available, your solar system will often produce more energy than you use. Instead of going to waste, this excess electricity is sent back to the Utility Grid, via Net Metering. Net Metering allows your meter to spin backwards, "banking" your energy for later use. 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.

You will receive credit for this power at the same rate the utility sells it for, so while you may receive a monthly statement from PG&E, your actual electric bill will only arrive annually. This bill will reflect the difference between the amount of energy your solar electric system generated for the year, and the amount of energy you consumed (referred to as your ‘true-up’ date).

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. The California Solar Initiative (CSI) program requires that you use "Time of Use" metering.

Financing Your Solar System

Real Goods has researched numerous quality home equity lenders and other loan sources in California and Colorado. Following are some options to explore: 

California

NEW! Secured Residential Loan Program for California Customers!

• From 6.74% to 7.24% Fixed Rate
• 3 Month Deferred 1st Payment Option
• No income documentation required for loans up to $40,000
• No prepayment penalties
• Bank pays all fees and costs for loan up to $150,000
• 2nd lien position
• Loan amounts: $10,000 ‐ $250,000
• Terms: Up to 20 years ‐ Fully Amortized
• Maximum CLTV 90% ‐ Additional added back value of contract price (Up to $50,000)
• Maximum DTI: Up to 50%
• Owner occupied residences only
• Loan amounts over $150,000 may require modest fee for property appraisal

This program, available exclusively through Clean Power Finance, has been underwritten and sponsored by Guaranty Bank.

Colorado

Boulder Valley Credit Union and Elevations Credit Union offer discounted rates for solar installations.

Other institutions to investigate are:

Clean Power Finance

(866) 525-2123

www.cleanpowerfinance.com

 

Western Heritage Financial

(800) 656-2693

www.whfinancial.com

 

Meredith Capital Group

(888) 259-0035

www.mcgmortgage.com/Solar.html

The Bottom Line: Let us Guide You Through the Process

We realize this is a lot of information to digest! The bottom line is that our solar energy consultants are here to walk you through the process, answer any questions you may have, and take care of the paperwork. We provide a FREE site visit and cost analysis, so contact us today to see if solar is right for you.

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