How Much Does Green Mountain Energy Pay for Solar?

Are you interested in switching to solar energy? Do you want to cut back on your energy bills and live a more eco-friendly life? Thinking about going solar may seem like a financial stretch, but with the right financing options, it’s completely achievable.

There are numerous positive impacts that solar energy can have on your life. Instead of spending money on traditional energy costs that increase as the year goes on, you can invest in solar panels that will provide you with free, clean energy.

The cost of solar panels has decreased significantly over the past decade. In 2018 and 2019, solar panel prices dropped by 12% and 14%, respectively. This means that going solar is more affordable than ever before.

With the right financing, you can have solar energy at your fingertips and start enjoying the financial benefits immediately. Here are some of the best solar financing options that can help you save money and live a more eco-friendly lifestyle.

Affordable Solar

The most critical aspect of any investment is the return on investment (ROI). When you’re looking at solar energy investments, the ROI is especially important to consider. Much like other forms of investment, the return on investment of solar energy depends on how expensive it is and how long it is until you’ll be able to recoup your costs. In general, the longer you wait the less you’ll make.

The good thing about solar is that it is very affordable. The cost of residential solar power systems varies from $0.79/watt to $3.19/watt, with an average cost of about $1.54/watt. To put that in perspective, consider that in 2019, the average electricity price across the country was 9.3 cents/kWh, and the national average cost of a watt of solar power is only 8.8 cents/kWh (source: the United States Energy Information Administration).

The best part is that these prices are set to decrease. In 2022, residential solar panel prices will plummet to an average of 5.2 cents/watt (source: NRFC Market Share)). This is due to a decrease in the price of copper, the most critical part of the solar cell, as well as the decrease in the cost of other components (like aluminum and glass). Additionally, the efficiency of solar cells has improved, which means you’ll need less electricity to power your home.

On the other hand, commercial solar costs a little more than residential solar but the payback on investment is much better. The cost of a commercial solar installation varies from $6.25/watt to $13.89/watt with an average cost of about $10.43/watt. That’s because commercial solar is usually attached to a building and is therefore more expensive to install (source: NRFC Market Share).

However, the good thing about commercial solar is that the payback on investment is much better. In 2022, you can expect to see a decrease in your energy bills as much as 66% (source: the United States Energy Information Administration). This is mainly because commercial solar is attached to a structure that has a better insulation value than a house, which means it keeps your home warmer in the winter and cooler in the summer. Not only that, but it also blocks out all the damaging UV rays from the sun.

Longer Time To Payback

Residential solar is great if you want to go green and save money at the same time. However, there is also a downside. In general, residential solar is a slow way to generate electricity. The good thing is that it’s relatively simple and straightforward. You’ll simply need four walls and a roof (plus water and electric lines, of course).

However, the downside to residential solar is that it’s a slow way to generate electricity. To give you an idea of how long it’ll take, in 2021, it’ll take an average of 6.7 years to recover the cost of your residential solar installation (source: NRFC Market Share)). This is mainly because to generate enough electricity to power your home, you’ll need at least 14 hours of sunlight every day, which means you’ll have to wait till at least the spring or summer to have your electricity supply. As an alternative, you could look at an off-grid solar power system, which will provide you with electricity whenever the sun shines.

Off-grid solar systems are better than residential solar in terms of speed and ability to generate electricity. To put it in perspective, an off-grid solar system will provide you with electricity within about nine months (plus or minus three months) of installation (source: the United States Energy Information Administration). This makes them much faster than residential solar, which can take as long as two years to payback (source: NRFC Market Share)).

The best part is that most off-grid solar systems are completely automatic. This means that you won’t need to worry about operating them manually. Instead, all you’ll need to do is set the system once a day and that’s it. In some cases, you may need to adjust the settings a little bit to get the most out of it. This makes it much easier to use than residential solar and in the long term, it’ll be the preferred choice.

Flexible Financing

If you’re looking for a way to finance your solar energy investment, you have a large number of options. Much like other alternative energy sources before it, solar energy is also backed by various types of loans and financial incentives from the government. If you meet the qualifications, you can get a government loan or grant to fund your solar installation. In some instances, you’ll also need to pay back the loan or grant with interest. This means that you’ll need to start paying back your solar investment as soon as you start receiving the benefits.

Loans and grants from the government for green projects are becoming more and more common these days. In fact, the government has set aside more than $8.8 billion for these loans and grants in 2020 alone (source: the United States Energy Information Administration; the U.S. Department of Energy). This is a large amount of money that can help you pay for virtually any type of green project.

If you do decide to take out a loan or grant to finance your solar energy equipment, keep in mind that you’ll need to make regular payments (principal plus interest). However, as long as you keep your house in good condition (i.e., you maintain the right insulation levels, temperatures, ventilation, etc.), you’ll need less energy and therefore pay back much more than what you originally invested. This means that the benefits of solar will more than make up for the costs of the installation (plus the loan or grant that you have to pay back).

If you’re interested in switching to solar energy, you have a wide array of options when it comes to financing. With the right loan or grant, it’s completely possible to have solar panels on your roof before you know it.

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