Why this is a great time to install solar
Iknow, I know, we are in the middle of a tragic pandemic and are socially distancing. There is a lot of uncertainty. “Why put in solar now?” That is what I said to my friend Rachel a few weeks ago when she told me her installers were starting her solar installation. This is what she said:
“They are socially distancing and being very careful. There are no more than two people at a time. They are not coming in the house. And these great incentives are now in place.”
New Mexico passed tax rebates for solar this past session. We do not know how long that will last, given the financial impact of COVID-19. The current Federal Credit, which was signed into law by President George W. Bush, is now at 26%, but will decline by 4% next year. It then sunsets in 2021, so its renewal will be up to the next administration. The New Mexico State Solar Credit is 10% unless budget restraints change that.
There are also other reasons to move on this now. When COVID-19 hit China, all solar production from China shut down. Solar installers around the world were concerned they would be unable to get necessary components. Now the reverse is true. China is up and running, but demand is down in the U.S. and elsewhere. Many people have temporarily cut back on their plans to go green. This is having a devastating effect on our emerging alternative energy industries, many of which are small and local. These are industries we cannot afford to lose.
So, if you can, act now because these businesses need your support to stay afloat. Most, like Positive Solar of Santa Fe, are offering free phone/virtual/ video consultations. They have very tight social distancing standards and safety protocols that will keep your family and their employees safe. And they will tell you solar will do more than eliminate your electric bill. It is also an investment. According to Dan Baker of Positive Solar, “your return on investment is 10-11 years.” Rachel, who had high electric bills, has only a 6-year return on investment. Solar also adds value to your home. Savvy buyers know the value of solar installation and will happily pay more for a home with rooftop solar. Some even expect it. Dan conducts solar appraisers for realty companies. He says, “the added value is based on the warranty and the size of the system.” Dan says that it is a great time to install solar. “It is as good as it is going to be.”
Solar is the future and, increasingly, the present. The cost of photovoltaics has decreased 99% since the ’70s and it is now way more efficient. But according to a recent National Geographic article, only 2% of our electricity comes from solar and 7% comes from wind. To avoid the worst of global warming, we need to reduce emissions by 7.6% annually. Renewables can help us do that if we help them grow. That is why you should act now.
Even if you can’t afford to pay cash, you should consider financing your solar installation. Positive Solar says you can get 100% of your electric from solar with zero down and end up paying the same amount for electricity monthly as you would pay the electric company. And, most importantly, your monthly payment would not increase over time. In contrast, they point out that your electric bills are increasing an average of 4.5% a year.
We put 13 solar panels on our roof about 6 years ago. We do not have electric bills any more and, under the program we enrolled in, we actually get bonus checks back from PNM regularly. That program is no longer available. Utilities are authorized to charge a minimum monthly service fee of $7.00. But that is all you will pay with a properly designed system.
Your system will also be under warranty for parts and labor. But the thing I like the most, since I am a gardener, is harvesting directly from the sun. I harvest from the sun for all the electricity I need for my home, including my hot tub. Soon, I will run my electric car on what I harvest from the sun. That is uber gardening.
Judith Polich, a longtime New Mexico resident, is a retired attorney with a background in environmental studies and is a student of climate change. She can be reached at judith.polich@ gmail.com