How Much Can I Save with Solar Panels Colorado
Would you like to install a solar panel in your home in Colorado? There are many factors that you should consider. To start with, solar panels have proved to be very important in saving the energy cost for the residents of Colorado. In fact, you do not have to rely on the electricity on the national grid to utilize the appliances you have at home. This energy is usually free. Also, in case of a blackout, you can still enjoy using power in your home. This has actually made many homeowners in Colorado to install solar panels in their homes. However, you might be asking yourself whether you can save with solar panels. The reality of issues is that you can actually save more with solar panels.
To start with, Colorado usually has a tremendous solar resource. In fact, it is capable of yielding hundreds of times as much electricity as the state consumes. Therefore the solar energy in Colorado has actually created many opportunities as far as electricity generation is concerned. Also, it has played a major role in research and development as well as in the manufacturing sector. Figuratively, Colorado is ranked as the 11th in the nation when it comes to solar installation.
As of 2016, 925.8 MW of solar energy has already been installed. By 2050, the state has committed to getting 100% of electricity from renewable sources. Solar energy is one of those options that will make this dream a reality. As you plan to install solar power in Colorado, it is vital that you know the solar power prices and what you can save in the long run. Here is what you can save by installing solar energy in your home:
- Net metering
This is a billing system that allows residential solar systems to feed excess energy that they yield back into the grid. Therefore, in case the solar system does not produce enough power to serve the needs of your home, you can consider pulling from the grid. With net metering, you can be sure that you can keep track of how much energy you have used and what is fed into the grid.
It is worth noting that net metering has proved to be very effective for many homeowners as it enables them to earn a rerun on their investment. Therefore, most homeowners who rely on solar panels in Colorado can offset a majority of their electricity costs. Since most of the energy that the solar panels generate usually goes to feed the home at night, they can get paid for retail utility rate as per the Colorado Law. As a result, they can save more on energy costs.
- Tax incentives and rebates
Apart from net metering, you can be sure that you will benefit from tax incentives and rebates offered to Colorado residents. This usually applies to all homeowners who have installed solar power systems in their homes.
Here, you will not only get credit for the extra electricity that you generate but also benefit from producing clean energy. You can trust that you will not pay taxes on your solar system. This, in turn, helps you to save more money.
- The federal solar tax credit
It is worth noting that the federal tax credit can actually lower your solar panel system by about 26% of the total solar power installation costs. However, it is essential to remember that the ITC only applies to those who bought their solar system with cash or a solar loan. For this tax credit to have an effect, you should ensure that you are able to make enough money annually. It is predicted that at the end of 2020, the amount of credit will decrease from 26% to 22%.
- Tax exemptions for solar energy equipment
Solar power users in Colorado can enjoy tremendous tax breaks. To start with, you do not have to pay the government anything for your new solar energy system. In fact, the Sales and Use Tax Exemption for Renewable Energy Equipment basically state that no sales tax will be added for the purchase of a new solar system.
As a result, most homeowners in Colorado can smile as this will help them save more money. Apart from this, the Property Tax Exemption for Renewable Energy Equipment usually allows you not to have to pay the tax imposed on the value of the house because of your solar system.
- Energy savings Mortgage Incentives for existing homes
Sometimes, you might not own a home or property that is fit for solar energy. However, this should not make you get scared. This is because Colorado usually offers one of the biggest supporters of solar community initiatives. Therefore, if you are interested in subscribing to an off-site solar array, you can go ahead. By doing this, you will be able to benefit from solar energy without necessarily installing it on your own. This will go a long way in helping you save more money than you could have used to install a solar panel in your home.
- Reduced energy bills
Most homeowners have been complaining about incurring high energy bills monthly. In fact, there is a nearly double-digit increase in electricity bills over the past ten years. This has made many customers think twice as far as their energy bills are concerned. Since most of them had earlier on connected their homes to the national grid, they have resorted to switching to the solar electricity system.
With solar power, you will be able to save more on a monthly and even annually as the only cost that you will incur is the initial upfront fee. Once the solar system has been installed in your home, you can trust that you will get free electricity thereafter. The good news is that you will not be subject to the fluctuating costs of non-renewable energy. This can significantly help you save more money in the long run.
- Power purchasing agreement
Colorado homeowners can now enter into a power purchasing agreement with their utility. Here, your home solar power will act as a mini utility company, where you will produce power and then send it to the grid.
With this kind of arrangement, you will enter into a contract with your utility where they will offer you a set price to buy the electricity generated from the solar system in your home, owned by a third party. The good news is that this arrangement is that a third party is the one that owns the solar panel and other components of the system, such as the inverter.
You can, therefore, trust that your system will actually earn more money over the life of the system. Finally, the third party is also responsible for system maintenance and troubleshooting. This too, can enable you to save more and get a better deal.
Although you might want to save more when using a solar panel, it is essential to note that the installation cost might determine how much you much save as well. The following are some of the primary factors that might determine the costs involved in solar panel installation:
- Size of the system
Different homeowners usually have different needs. Some homeowners would like to have several solar panels in their homes. However, there are others who would like to have a few panels in their homes. Depending on the number of solar panels you want in your home, you can either save or spend more money as afar as up-front fees are concerned. However, after that, you will be able to save more and enjoy more convenience.
- Type of the solar panels
Solar panels usually come in different types. However, the two common types you are likely to find out there are monocrystalline and polycrystalline. Although these panels work in the same way, you will note that monocrystalline is more streamlined in appearance. Also, it is a higher efficiency rating and can cost more compared to its counterpart.
- The solar installation company
Your company of choice can determine the amount of money that you will use to install a solar panel in Colorado. Since these companies are many in Colorado, you should be keen to choose the one that fits your budget.
Some solar installation companies in Colorado will charge a higher fee due to the equipment they use to offer their services. However, others will charge more merely because they incur huge costs when it comes to promoting their services. Your company of choice will determine whether you will save more or not.
Conclusion
It is true to say that solar installation in Colorado has helped many homeowners to save more on electricity bills. Since solar energy is a renewable source of energy, you can be sure that you will get the value for your money. If you choose a reliable solar installation to work with, you can save more. Consider these ideas when installing a solar panel in Colorado today, and you will not be frustrated.