Solar Power Costs and Incentives

When evaluating solar power cost, there are three main considerations.

  1. Initial installation cost
  2. Government incentives
  3. Return on Investment

Initial Installation Cost

The cost of a solar power system is declining as more competitors enter the market and installation volumes increase. These costs include the components themselves and the installation. Costs will vary depending on how much electricity is needed and how and where the solar panels will be installed.

Government Incentives

The solar Federal Tax Credit has been extended for five years.  The tax credit provides savings for homeowners and businesses by reducing the cost of solar energy systems by 30%. Ask Sundog Solar for more information.

Sizing Your System

Your system size can be determined by looking at your electric bill. Each bill has the total amount of kilowatt hours used. Bring this information to our store in Searsport and we can evaluate your system cost and potential savings. The system size can also be influenced by the amount of roof space you have and how much of your bill you would like to replace.

Examples of Solar Electric System Cost

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Net Metering allows utility customers to save money by earning credits for each kilowatt produced above their kilowatt usage for the month. Credits are used during lower production periods and are good for 12 months. Customers pay a minimum utility charge, have access to utility poet when needed but will not be reimbursed for unused credits. Proper system design is important.

Thanks to strong government incentives, there’s never been a better time to invest in a residential or commercial solar powered system in Maine. There is a 30% federal tax credit given for the entire cost of your solar electric system.  The tax credit is good for grid-tied and off-grid solar electric systems .

Return on Investment

Here’s a simple ROI for a grid tied, cash purchased PV system.  The typical payback period is 10 years with years of profit growth after this.