A solar purchase offers a simple solution for rising energy rates.
On average electricity costs rise at a rate of 4% per year. Electricity rates can fluctuate throughout the year depending on your electric company. For example, PNM announced customers can expect an increase of approximately $0.46 on their monthly bill beginning next month.
While the increase is relatively small, the impact over time, means customers will inevitably pay more with each passing year. By installing a solar energy system, homeowners can safeguard against rate increases; and instead, secure today’s electricity rates for a minimum of 25 years.
How much can you save and what is your return on investment?
Savings are determined by the size of your solar system and your family’s electricity usage. Most customers see a return on investment of approximately 10% in the first year of their solar panel installation, and a majority of our customers are able to pay off their purchase in 7 to 8 years.
What is the Solar Investment Tax Credit?
Solar customers continue to be eligible for the Federal Tax Credit of 30%. This is a huge benefit to homeowners that can realize the benefits of a tax credit. Additionally, customers who do not have tax liability in year 1 can ‘roll over’ the tax credit to following years. As with all tax situations, a homeowner should alway consult with their tax advisor to determine their eligibility.
The below image, by Energy Sage, outlines the Investment Tax Credit schedule from 2016 to 2022.