We know you’ll have a lot of solar energy questions, and we’re ready for them all!
Commonly Asked Questions About Solar Energy
Absolutely. Solar installations began over 50 years ago, and many systems that are decades old built with far less sophistication than today’s products are still in operation today. The solar system technologies offered today are extremely reliable and the solar panels used are designed to produce at least 85% of their initial power over the first 25 years. Solar Energy Builder’s residential options come with a 25 year solar panel and inverter warranty. Adding to that, Solar Energy Builders provides a warranty of at least 10 years on the materials and workmanship.
Yes, it can. The future value of the electricity your solar system will produce can easily add up to thousands, and even millions, of dollars that any future owner would have had to buy from a utility. For homes, the National Association of Appraisers has estimated that a home’s value could easily increase by up to 8x the value of annual energy savings. For businesses, when you reduce operating costs you increase your net operating income (NOI) which is a key metric to commercial building valuations.
The rate of return will vary depending upon several factors, but in our experience many solar systems provide a 100% return on capital investment in as little as three to seven years. The key point to remember is that virtually 100% of the cost for your solar system was cash you would have sent to the utility company every month which you wisely decided to put to work for you.
With a roof-top or carport solar PV system, you can convert thousands, and even millions, of dollars’ worth of solar energy into usable power providing you with a strategic cost cutting advantage well into the future. You take immediate control, and predictability, of your long-term energy costs giving you peace of mind.
The Federal government offers a 26% tax credit on the purchase cost of a solar power system. That’s $2,600 back in your pocket for every $10,000 in system cost. You can carry forward unused tax credits for up to 20 years. Additionally, businesses can take advantage of depreciation allowances. In California, these combined incentives can add up to over 60% of a solar systems cost.
Here’s how. You already pay for energy every month with no end in sight. When you invest in a solar photovoltaic (PV) system, future utility payments now stay in your pocket to offset the system cost, you own an appreciating asset, and literally decades of free power.
Ownership & Operating Questions
System Investment Options Questions
Yes, sometimes paying cash for a solar system may not fit your cash flow or investment objectives. Given this, our lender pool offers programs that provide you ways to monetize the tax incentives upfront in return for instant utility savings.
Through our lending network, our lenders offer loans with 5 to 30 year payment plans, purchase through PACE property tax assessments with initial payments deferred for up to 12 months, and for businesses, Power Purchase (PPA) options that can save energy costs without the need for significant investments. In many instances, we can provide you with a cash flow positive result from day one with minimal to zero up-front costs.
Each method has its own unique benefits. In addition to tailoring a solar system designed to maximize your savings, we also provide you with an analysis of how cash or loan based purchase options cash flow over time. Our goal is to assist you and to help identify the best options.