When to Buy
Buy now or wait for price drop?
Q: Tanner asked Do you see any major advances in solar technology in the near future? Should I hold off on installing a solar electric system?
A: Tanner, Major Advances will come. But what effect it will have on installed price remains to be seen. The following reasons made me act on getting my own system installed.
1. State Rebates in California continue to go down with time Dropping 66% in the last 5 years.
2. Electric Energy costs continue to rise up to 105% in the last 3 years for Tier 5 power & 73% for Tier 4 power.
3. Federal Tax Credits Pay for 30% of the system cost and will expire in a few years.
I would not wait as the future cost reductions are uncertain and the Rebates and Tax Credits add up to about 45%. How much will your electrical bill add up to be while you wait? Due to the world slow down there has been a glut of solar panels available which has caused them to be discounted 20-30%. Once the over supply is gone and the world economy picks up so will the demand for solar panels. This will cause a Supply/Demand price correction. I feel this will cause panel prices to rise. Labor and transportation costs are going to rise in the future as well as overhead of doing business. Add the potential for inflation and you have a recipe for prices not likely to fall but probably rise. My advice is if you can take advantage of the situation now you will be much further ahead in the coming years both financially and personal independence wise.
SERVING CALIFORNIA'S CENTRAL COAST FROM MONTEREY TO LOMPOC SINCE 1975