We have all heard the pitch before. “Get free solar from the government!” or “The federal government will pay you to put solar panels on your house!“
There is a lot of truth to this statement, but the whole “free solar” thing is misleading at the very least.
The basis for this claim is that most solar programs require no money down and no out of pocket expenses upfront. The first bill or payment you will receive comes after your solar is installed and is typically less expensive than your current electric bill and will (at least mostly) replace your electric bill.
This does not mean the solar is free, but instead, it is less expensive than electricity through the utility company.
For those of you more familiar with financial lingo, this is called cash-flow positive. It means that there was no “hit’ on your finances, or no money out of your pocket, but you will see immediate savings.
For instance, if your electric bill is $150, then with going solar, you would have a $0-10 electric bill and roughly A $120 solar payment. You would be saving at least $20 a month the very fist month and more as electricity rates increase.
This is made possible by the solar federal investment tax credit. If you pay income taxes, then the federal government will effectively pay for 30% of your solar panel system. This makes solar power much cheaper than what you are currently paying to TEP/TRICO/APS/SSVEC/UNISOURCE.
The Arizona State government also pays a flat $1000 tax credit on the value of a solar panel system as well.
Most investors consider this a very lucrative financial decision, even a no-brainer.
Why have the electricity company middle-man your power and charge whatever they want? Take control of your electricity usage by making your own clean power for much less than the electric utility!