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Top Solar Myths About Residential Solar In 2020 | DroneQuote

By DroneQuote | Posted January 29, 2020

Top Solar Myths About Residential Solar In 2020

Top Solar Myth 2020: Time Is Running Out.

# 1 Top Solar Myths In 2020: Time Is Running Out

Reading Time: 4 Minutes.

While there are still almost two years of tax credits on solar panels, this is one of the “solar myths” that is actually a solar fact. The tax credit available for renewable for solar panels is decreasing. Today in 2020 the tax credit for solar panels, known as the income tax credit or ITC for short, is 26%, down from 30% in 2019. In 2021 the tax credit is scheduled to decrease another 4% and ultimately being eliminated in 2022 for the purchase of solar panels. 

As the end of the tax credit nears there will be additional interest and demand for solar panel installations building up to the last minute. When this happens, there are going to be people rushing to get installed with enough time to capture the solar tax credit to maximum potential. For the maximum financial benefits of installing solar panels, it would be correct to say that time is running out. 

# 2 Top Solar Myths In 2020: You Don’t Save.

There are some states where the cost of solar electricity is still a little bit higher than the local utility, that is a fact. But as time passes the balance is shifting as the cost of solar panels continues to decrease and the cost of fossil fuels fails to remain competitive. 

In a significant part of the country, the cost of electricity from the power grid is more expensive than the cost of electricity from solar panels or other sources of renewable energy. The cost difference is so extreme in some locations that a homeowner may save over 50% of their current average electricity bill with solar loans that make the buying process very easy. With that level of savings, a savvy homeowner would be able to fix the cost of their electricity and invest the difference into a retirement account. Imagine growing your nest egg on what you would have otherwise given to the power company, while at the same time living green…environmentally green, although now it can really go both ways.

 It is important to note that savings are specific to each home as every property has its unique scope of work involved. the DroneQuote model is built on leveraging drone technology and web tech to create a customer experience for the times of 2020 and beyond. We’re living in the future, baby!

Solar panels and other renewable energy really do introduce a significant level of monetary benefits in many markets around the United States where conditions are right.  Even after the solar tax credit expires, the savings from solar panels will be significant in enough markets to continue being purchased over the option of buying electricity from the local utility, especially if the solar panels are financed through the right solar loan option.

# 3 Top Solar Myths In 2020: It’s Expensive.

One of the many solar myths that will live into perpetuity is that solar panels are expensive. In today’s day and age at what the current cost of electricity is from most Utilities in the United States, not having solar is actually more expensive than installing solar panels. 

Top Solar Myths About Residential Solar In 2020

Top Solar Myth 2020: Its Expensive.

If you consider solar panels from the cash up-front perspective it may seem like solar panels are expensive given the upfront cost, but consider this, installing solar panels and paying cash is unlike any other big-ticket purchase or home improvement. Unlike other big-ticket purchase, installing solar panels will literally pay for itself many times over. Plus, there’s the added benefit of added equity to your home happening in most real estate markets where solar panels have become the norm. 

Besides the payback period and gains in home equity dispelling the expensive myth, there’s also the continued decrease in the cost of solar and the soon-to-end tax credits that further bring down the price. In 2015 the average cost of solar was in the neighborhood of $3.80-$4.00/watt, depending on your sources and location. Going into the new decade, the average cost of solar in 2020 with DroneQuote is usually less than  $3.00 per watt. With additional technology gains and efficient marketing, there is room to make solar panels even more affordable and really dispel this myth.

# 4 Top Solar Myths In 2020: Solar is Free.

 Some solar myths are easy to dispel because it originated from a common misunderstanding, but one of the most nefarious solar myths and outright lies in most cases is the myth that solar is free. We all know the saying that goes “nothing in life is free” so it should always raise a flag of sorts if somebody tells you if something is free. Especially free solar panels.

Solar panels are rarely free although there are sometimes here and there in which homeowners of qualifying income brackets or circumstances really are given free solar panel systems,  rare as it may be. Even so, this solar myth is sometimes used when lying to people about free solar panels. There are some loan options known as property assessed clean energy or PACE for short, wherein the system is financed by assessing the cost of the solar panels plus fees of the program on to the homeowner’s property tax bill. Since the balance doesn’t go on the homeowner’s credit a homeowner may have the impression of the system being free because nothing was “paid for” out of pocket and nothing “reflects on their credit”. By the time the homeowner is hit with the tax bill for the solar panels financed by PACE, the salesperson is long gone and the homeowner is now stuck with a bad loan, high rates, and higher pre-payment penalties.

 If anybody promotes free solar, free energy efficiency services, or free appliances it should make for a moment of consideration. While solar loan payments are often times less than the average monthly utility bill, there is nothing “free” about solar.

# 5 Top Solar Myths In 2020: There’s A Long Payoff Period.

5 Top Solar Myths In 2020: There's A Long Payoff Period

Solar Myth In 2020: A Long Payoff Period

The solar payback period is usually 4 years + for installing solar panels, however, the payback period for not installing solar panels is never and you don’t gain any equity in your house simply for paying the electricity bill. While in the best-case scenario somebody may see a solar payback period of fewer than 4 years, it also means that the cost of electricity in that location is extremely high. In other places where the cost of electricity is lower, a solar payback may be longer than four years.

For homeowners that choose to use a solar loan or some other kind of financing to buy their solar panels, it may be possible that they save over 50% of their previous utility bill without spending a single dollar out of pocket. By that measure, the solar payoff will have been immediate.

In order to get the best return on your solar investment, you have to make sure you not only get the most competitive price but also the best installation quality. It makes no sense to find the lowest possible price if the installer is going to cut corners which will end up costing you more in the future. DroneQuote provides you multiple quotes for solar and roofing from different installers to ensure that you get competitive pricing, and we use drone technology to survey the roof inspecting before-and-after work, unlike any other service. Get FREE solar and Roofing quotes with DroneQuote the smart way.

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