Household budgets are being pinched tighter than ever these days with inflation sitting between 7 – 9%. We’re feeling it here at Solar Holler, too. Equipment prices are up, gas and shipping costs are high, and the Fed just announced another big interest rate increase.
If you find yourself wondering if solar is a worthwhile expense right now when your goal is to save, our answer is (a not so surprising) YES!
1. We all pay for power. The question is not whether you’ll have a monthly electric bill, but who you pay and how you want to pay it.
Like everything else, the cost of utility power is on the rise. Electricity rates float with natural gas prices, and natural gas prices are projected to continue going up.
“The EIA reports that the large increase in natural gas fuel costs over the past year is driving up wholesale electricity prices throughout the United States.”
While household expenses rise across the board – from gas to groceries- solar is one of the few choices you can make to control costs.
In West Virginia, AEP and FirstEnergy already have approval to raise rates each January for the next 10 years to pay for maintenance on their legacy power plants. On top of that, each of these utilities asked for additional rate bumps just this year – with FirstEnergy’s going into effect over the summer and AEP’s expected to go into effect this winter. Add to that MonPower’s most recent request earlier this month to recover nearly $184 million from its customers. Wholesale electric rates are expected to nearly double over the next year, which will continue pushing our utility bills up.
2. New federal policy strengthens solar savings.
The primary federal support for solar is a tax credit. Put another way, when you go solar – you cut your taxes. New federal policy just increased that tax credit by $1500 – $2000 for the average home solar project – giving more families a pathway to energy independence.
3. Your costs with solar are predictable.
Going solar comes with a one time installation cost (which we can help you finance at 0% down) and no other ongoing costs. Sunshine is unaffected by changing energy markets, global demand or utility rate hikes. The sunlight that hits your roof is still free and it shines on your home each day regardless of whether or not you decide to turn it into a commodity.
4. The economic realities of supply and demand.
With the increase in federal benefits, the interest in solar is also on the rise. In the near-term, we anticipate potential constraints for our equipment supply chain that could push prices higher while manufacturers work to meet demand. Going solar sooner rather than later is the safer bet.
Here’s what we know:
The cost of utility power seems to only ever move in an upward direction – getting into solar offers protection from increasing electric rates at a fixed cost that actually adds value to your family’s budget. The most common refrain we hear from our customers –
“I wish I had done it sooner.”