Are you, like most people, overestimating the cost of solar? According to a recent study performed by Sunrun, only 3% of surveyed U.S. adults are aware that installing solar can cost less than $1,000 upfront. The other 97% are overestimating solar energy costs by as much as $40,000. Installing solar can be done with as little as no money upfront thanks to power purchasing agreements and solar lease options.
Homeowners are no longer required to purchase a solar system in order to take advantage of this clean energy technology. Many solar installers are offering leasing or power purchase agreements (PPA), meaning that the installer covers the upfront costs such as the solar panels, inverter, installation, and permits. The homeowner simply pays a fixed amount every month, less than their original electric bill. For PPA agreements, there is a fixed rate for the electricity produced by the system, while lease agreements typically charge a fixed amount per month for solar panels regardless of how much energy they produce. Either way, homeowners can find peace of mind knowing exactly how much they will pay for electricity, while their utility companies continue to raise kWh prices over the coming years.
Both options are increasingly popular among homeowners for both the financial feasibility and convenience, as installers also monitor and maintain the system while in use. It is estimated that 75% of California residents now opt for these types of arrangements instead of paying the full purchase price for their system.
“The widespread myth that solar is too expensive is a remnant from the time when buying costly panels for tens of thousands of dollars was the only option,” said Sunrun President and co-Founder Lynn Jurich. “Fortunately that era is over. Misinformation is the root of the problem, and this data can help increasing numbers of homeowners get educated and opt into solar.”
It is seriously important to correct Americans’ misconceptions on the cost of solar energy. Sunrun’s researchers also found that 80% of the people surveyed stated they would install solar if cost were not an influencing factor. In fact, 44% would go solar within the next year if they knew it was affordable!