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The solar clock is ticking – don’t wait for solar energy costs to come down

The installed cost of a solar electric system has come down dramatically in the past several years – by 50% in most cases. However, homeowners considering investing in solar would do well to act sooner rather than later. Declining financial incentives and the threat of increasing panels costs (due to US tariffs on chinese solar panels), mean that the cost of solar energy could start to go up very soon.

SOLAR ELECTRIC (PV)

Whole house solar electric systems are being installed every day in Maryland. The system can be sized to offset some or most of a home’s electricity bill and are grid-tied; the homeowner’s utility-provided energy is still readily available for them in times of no-sun. Also, when there is more sun than needed – the extra energy serves to turn the homeowner’s meter “backwards” – crediting their utility account. Current grants and tax credits, coupled with unprecedented low solar panels costs, means that most of the solar electric systems currently installed pay for themselves in around six years and are warrantied for 20 to 30 years. That’s 20 to 30 years of ZERO rate increase.

TYPICAL 5kW SOLAR ELECTRIC SYSTEM

• Estimated System Cost $21,000
• Federal Tax Credit $6,300
• MD State Grant $1,000
• AA County Property Tax Credit @ 75% $1,875
• SREC Payments* $6,700
• Total Incentives $15,875
• Net Cost to Homeowner $5,125
• Payback in Years 5 – 7yrs
• 25yr Annual Energy Savings +$800 per year

SOLAR WATER HEATERS (thermal)

The solar panels used to heat a home’s water for laundry, showers etc. are entirely different from those used to provide electricity. They require much less space and are substantially less expensive. A solar water heater sized for a family of four provides 75% of the home’s annual hot water load and CAN PAY for itself in around 3 years.

Again, this is a system slated to last 20 to 30 years. Gas or electric is used as a back-up system.

TYPICAL 4-PERSON SOLAR WATER HEATING SYSTEM

• Estimated System Cost $9,000
• Federal Tax Credit $2,700
• MD State Grant $ 500
• AA County Property Tax Credit @ 75% $1,875
• SREC Payments* $3,200
• Total Incentives $8,275
• Net Cost to Homeowner $725
• Payback in Years 1 – 4 yrs
• 25yr Annual Energy Savings +$400 per year

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