Economics of Solar

Solar delivers strong financial benefits to homes and businesses
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Buying Electricity is Not Optional – How Much You Pay Is

When paying for electricity, you can continue to purchase electricity from PG&E or local CCAs (Marin Clean Energy or Sonoma Clean Power), agreeing to pay more, with costs likely to increase significantly every year, forever.  SolarCraft Solar Systems provide an far less expensive alternative for purchasing electricity, often providing power for 50-75% less than fossil-fuel based utility power or imported renewables.  Client-owned Solar is also called Distributed Generation – and the end goal is to own your solar system and generate ‘cost-free’ electricity for decades.  You can take control of your energy costs.  SolarCraft has saved clients millions of dollars in electric costs – do not let the utilities sell you renewable energy and capture the financial benefits of your good intentions!

Electric rates continue to increase. Solar technology is highly efficient and reliable. Low prices are driving solar adoption while tax credits and grid interconnection capacity is still available.  There Has Never Been a Better Time to Go Solar!

Homeowners Can Save Tens of Thousands of Dollars

Businesses Can Save Hundreds of Thousands of Dollars

*Projected energy costs for ~10,500 kWh annual usage on PG&E,MCE or SCP’s E-TOU A or LocalSol rate plans with 5% annual cost increase vs. 7 kW client-owned PV system with typical production in North Bay and average installed cost (incl. permits & PG&E fees), less tax incentives.   Own your power.

*Projected energy costs for ~375,000 kWh annual usage on PG&E A-10 rate plan with 4% annual cost increase vs.  250kW PV system with average production in SF North Bay and typical installed cost less tax incentives with O&M, permits, and PG&E fees. 

The Value of Solar

In terms of pure economics, solar energy systems deliver the strongest economic ‘return on investment (ROI)’ of any home or property improvement project, and provides stronger and more proven financial benefits that almost all other investments.

Solar delivers strong economic benefits in three ways:

 

Solar Saves on Electric Bills

Solar typically saves tens of thousands of dollars for homeowners, and hundreds of thousands for businesses. Solar energy is typically 50-75% cheaper than fossil fuel-based energy sold by utilities, and saves even more when compared to renewable energy provided directly by utilities and CCAs (i.e. Deep Green).

Solar Increases the Value of Your Home or Property

Often by more than the actual cost of the solar system (making solar a net positive investment immediately). Solar powered homes have been proven to sell faster and at higher prices than non-solar homes, attractive to home buyers both as healthier ‘green homes’ and because solar reduces cost of living.

Solar Provides a Hedge Against Rising Utility Costs

Solar systems are often considered an appreciated asset, saving clients more money each year while providing a hedge against escalating utility costs and stabilizing cost of living (or operating expenses). That monthly investment you make in your utility – that is a losing proposition!

What Makes Solar Such a Profitable Investment?

 

  • California has some of the highest electric rates in the country, so solar is offsetting very high cost energy.
  • Federal Tax incentives offset 30% of system costs.
  • Business can utilize 100% Bonus Depreciation in Year 1
  • Cost of Solar Electric system have dropped 60% in 5 years
  • The reliability and efficiency of solar equipment have improved greatly as global demand skyrocketed, minimizing maintenance costs.
  • Flexible finance solutions provide the ability to optimize savings or save monthly with zero upfront investment.
  • The beautiful San Francisco North Bay climate is ideal for solar production; abundant sun, with mild temperatures.
  • The sun is free, infinite fuel source.
  • Solar produces energy when most the most energy is needed (most in demand); during long, hot summer days.
  • California’s Net Energy Metering regulations allows solar customers buy and sell electricity from the grid daily.

Electric Rates are Rising – it is Your Choice to Pay Them

The cost of energy within PG&E territory have been escalating rapidly and consistently for the more than 35 years. The last few years have been particularly expensive for PG&E clients, with alarming rate hikes and changes to rate structures and Time-of-Use periods also causing many clients’ energy costs to skyrocket. The recent wildfire disasters, recovery costs, pending regulations and lawsuits brought against the utility could add further cost increases to local rate payers.

*PG&E rates published at http://energyalmanac.ca.gov/electricity/ until 2012, and since 2008 at  www.pge.com/tariffs/electric.shtml.  See E-1, A-10, and E-20 rates.

Fortunately, SolarCraft solar energy systems can not only stop the increases in electric costs, but can often provide power at 50-75% less than utility rates. From a purely financial perspective, there has never been a better time to go solar. [note: local CCAs, MCE and SCP, do provide alternative utility-like options for North Bay residents, but their energy rates are designed to very closely mimic PG&E’s in structure, cost, and even billing]