Although solar energy equipment has become more affordable, converting a house to solar energy can be expensive. The average cost is seven to nine dollars per watt, which could mean as much as $25,000 to $35,000 for a house with 5kW of power. Fortunately, there are many ways to get financial help installing solar panels Rhode Island.
Incentives for Solar Power
Over the years, state governments and utility companies have offered incentives to residents wanting to convert their homes to solar energy. If you’re considering making the conversion or are having a new home built and want to use solar power, you need to double check for available incentives as they frequently change. Fortunately, Rhode Island residents have several options for receiving help with solar conversions.
Options for Solar Power
The best option available for up to 5kW systems involves an incentive from the federal government which provides a $4,995 tax credit, plus over $1,000 in performance payments. Over time. approximately 24 years, this could mean receiving up to $15, 650 toward the cost of your system. Which, depending on the cost, is about half of the total.
The second option involves an initial investment of $16, 650 dollars and incentives, as well as savings, of over $7,000. In about six years, this option allows the system to start making a profit for homeowners. In most cases, when a solar system provides more energy than a homeowner can use, the electric utility company will pay for the extra electricity the system generates, which is how solar systems can provide profits.
It is less expensive to include a solar power system in a newly constructed home, but incentives like tax credits and savings can help reduce the cost of converting a house from electric to solar power, which can pay for itself over the long run.