Let’s take an overview of the state of solar electric today. As of the date of writing this (September 2018) the federal income tax credit (ITC) for solar installation is just over a year away from being reduced. Over the next few years, it will bottom out at around 22% of gross install cost.
For homeowners in PG&E territory with electricity bills around $150 a month or so, solar for their home is a compelling investment. For businesses the appeal is lower operating cost and improved cash flow. Businesses – unlike homeowners – can take advantage of the 5-year accelerated depreciation schedule. (Even this has been sweetened.)
A few months ago, I happened to bump into a prospective customer whom I first met about 5 years ago. When we fist met, he was insistent that solar technology would advance so quickly that if, at that time he were to have solar installed, his commitment would be worthless in a few years.
It’s taken 60 years to get to where we are today with mainstream solar electric technology and products. What’s changing however, are the methods of acquiring it. Cash, of course, is king. There’s also leases, PPA’s and financed purchase. More about these in later posts.
So homeowners and business owners & managers, what are you waiting for?