Is there a best time to install a Solar Power System? A lot of people wait until the end of the year to take advantage of the 30% Tax Credit. Others believe that spring is the optimum time because they believe that the maximum solar power production occurs during the summer months. The truth is NOW is always the best time to go Solar.
Let’s consider two different Scenarios. First we will look at installing a Solar Power System Mid-Winter.
Mid-Winter (January) Scenario
Fact 1: You don’t receive the financial benefits of Solar Power until you install a Solar Power System. Regardless of when you install a Solar Power System, the benefits are immediate. You will offset a substantial portion of your electric utility bill even in the middle of winter.
Consider the following graph:
Solar Production vs Consumption by month
This graph shows a typical relationship between Solar Production
and Consumption for a residential property in Colorado
As shown above, even during the winter months, solar power typically produces between 68% and 88% of the total residential consumption. For the rest of the year, production exceeds consumption (except August when there is typically high HVAC demand).
Fact 2: By using Net Metering, you can bank your surplus production with the utility and use it on an as needed basis. You never lose this surplus. It is available whenever it is required.
Based on the above example, here is a running total of your net metering surplus:
Net Metering Balance (Surplus) by month
This graph shows a typical accumulation of a Net Metering Surplus for a residential property in Colorado
As you can see, in this example, your net metering balance will remain positive and readily carry you through subsequent years.
Fact 3: When your Net Metering Balance is insufficient to meet your production shortfall, you will be purchasing power from the Utility:
Utility Purchases by month
This graph Shows the required purchase of utility power for a residential property in Colorado required to meet the demand when the Net Metering balance is insufficient to meet consumption demand.
Fact 4: Your Tax Credit will be available whether you install your system in January or December. And it has a carry-forward provision, which means if you don’t owe enough taxes to consume your credit in the current year, the balance of the credit will carry forward until it is exhausted.
Mid-Summer (July) Scenario
How do these graphs change when you install your Solar Power System in the middle of the summer (July)?
Taking the same production and consumption profiles, here are the results:
Solar Production vs Consumption by month
Net Metering Balance (Surplus) by month
Utility Purchases by month
As you can see from the above examples, there is very little difference a mid-summer installation and a mid-winter installation. The difference in Utility Purchases was only 19.5 kWh.
Another way to look at this is to compare your utility purchases with and without a Solar Power System.
Utility Purchases by month with and without a Solar Power System
Your utility bill with a solar power system in a worst cast scenario is about 5% of what it would be without Solar Power. And because of the accumulation of a Net Metering balance, this would only be during the first year of Solar Production. Utility Purchases would be zero in subsequent years for the life of the system.
Summary
Regardless of when you install you Solar Power System, you immediately begin accumulating substantial financial benefits. You would be producing your own kWh rather than buying them from the utility. You would receive a 30% tax credit when you install the system.
Delaying the purchase of a Solar Power System delays the realization of these benefits. The best time to install a Solar Power System is always NOW.
Get Started with a Free Site Evaluation
The foregoing analysis is based on a typical residence in Colorado. To find out exactly how this analysis would apply to your particular situation and location, request a free Consultation from SoL Energy, LLC.
Based on that analysis, we will offer you a proposal for a Solar Power System that meets your specific needs and location-specific requirements. Our Proposal will also address national and local incentives, tax credits, and financing options. Our goal is to make sure that you are armed with enough information to make a confident decision whether the solar investment is a good fit for you given your unique circumstances.
