Posted by James Bartley on Jul 9, 2019 10:28:00 PM
Prices for solar have come down so much in the last 8 years since our first solar install back in 2011. We are living in a great day and age where competition and technology have both created an ecosystem of ever evolving cheaper and better technology around every corner. We are located in Missouri and I would definitely say that with some of the cheapest power in the USA we are able to see solar benefit the lives of so many Missourians across the state.
As you may or may not remember back in 2016 the federal tax credit of 30% was slated to go away completely. With enough lobbyist's and people in the political arena you witnessed this 30% federal tax cliff turn into a tax slope with the following schedule for retirement. If you install your solar system in 2019 you will qualify for the full 30% tax credit, in 2020 it will reduce to a 26% tax credit and in 2021 it will reduce to 22% and finally in 2022 it will reduce to ZERO.
In all fairness there is no one person that can predict the future but if I was a lucky guy and could gamble on the right horses in this race I would bet that somehow it will be extended again. The solar industry in the USA is too large with SO many lives and jobs affected by this industry that it is hard to envision the actual demise of the federal tax credit. but lets envision that it does go away completely...
For simplicity sake let's say that your cash buy on a solar system is now seen to be a 9 year return on investment based on avg. market factors affecting this number. With no federal tax incentives in place to take advantage of, the system will ultimately cost 30% more and essentially your return on investment will turn out to be roughly a 12-13 year return on investment and to be completely fair I believe that the market would see some degree of a market correction in pricing from all angles causing the reflection to be slightly less impactful. This is a blog and my opinion and speculation are both only just that, but here's the last thing I want to leave you with.
If you are reading this now there is a high probability that you are on the fence or even in the beginning stages of researching solar. I hope that my opinion of what I think won't happen is seen as exactly that and not taken for gospel but either which way this actually ends up playing out, solar will still make sense. The only thing to do now, is to consider how waiting could prevent you from getting the best ROI possible. I've got to plug and say if you have ever wanted a zero hassle zero obligation quote on how a solar system would look for you then click the link below to book an appointment with one of our energy consultants.