Dollars & Sense
Dollars & Sense
Reduce Your Electric Bill
Our solar systems at GoGreen SOLAR can reduce your electric bill by 100% and make your meter spin backwards since you will be selling electricity back to your utility company. The price of electricity produced by solar panels is around 5.25 cents per kilowatt-hour (kWh), while you are currently paying your utility around 10.25 cents per kWh.
GoGreen SOLAR systems have an annual return on investment of around 7.75% from the savings on your electric bill. As energy prices increase over time, your return could average around 16% per year, while the solar panels are under warranty for 20-30 years. This solar investment is about as secure as a bond and bonds usually only yield around 5.25% per year. Also, let’s say you were to place the same amount of money and invest in a bond, mostly all of the earnings from the bond would most likely be washed out because of the money that you will lose from paying your electric bill. The end result could be a total loss on your investment; a zero percent or -100% negative return on your investment.
With the prices of solar panel systems plummeting and the recent extension of the federal and state tax incentives, solar power is more affordable now than ever. Also, according to the U.S. Department of Housing and Urban Development, you gain $20 in home value for every $1 reduction in annual utility costs. From Business 2.0 Magazine:
“New tax credits and rebates are making solar-powered conversions as smart as redoing your kitchen. Before you drop $20,000 or more on a new kitchen or master bath, consider the newcomer on the renovation block: a rooftop solar-power system that not only will lower your overhead costs and insulate you from a volatile energy market but will likely add just as much to your home value over the long haul. A study in Appraisal Journal found that for every utility-bill dollar saved annually because of an improvement, you gain $20 in property value. So if you can zero out a $1,000 annual electric tab by installing solar, you’ll get back $20,000 in home value.”
Federal Tax Credits
Another benefit of installing solar is that in October, 2008, the U.S. Congress passed an extension of the 30-percent federal investment tax credit for both residential and commercial solar installations to the year 2019 (credit decreases to 26% for tax year 2020; drops to 22% for tax year 2021). The extension also included the elimination of the $2,000 monetary cap for residential solar electric installations, creating a true 30-percent tax credit.