The growing popularity of solar Kansas City is making everyone both homeowners as well as business establishments to make a smart choice. It is found to be cheaper than the traditional mode of power, and it's a better investment than the stock market in most of the states. You can't take the decision unless you know the various ways you can avail to go solar. Each state has different ways to adopt the power of the sun. Apart from incentives and solar policy, the strategy to switch to solar power differs from state to state
Different Ways Available in Kansas
It can be difficult to know about the best way to go Solar in Kansas City. There are various options available: an outright purchase, utilizing loans or obtaining lease along with power purchase agreements. Your choice should depend on your unique requirements and on the return on investment each approach provides. You should weigh in all the options before you make an informed decision.
The purchase option has the highest returns over time but requires massive up-front investment. A more viable option could be taking home equity line of credit (HELOC). In this mode, you'll need $0 down payment, and you can also get a big tax break at the end of the year. With this approach, your loan payments will be more than your savings on electric bills. But, still you'll still save thousands of dollars by the end of 25-year warranty with a still lot of potential going into the future. The leasing is ruled out since the state doesn't offer this option.
Outright Purchase - It is the best choice to install panels on your roof regarding the control it offers. Regarding percentage return on investment, loan option is better than outright purchase. The money you save is higher in outright purchase since you own the system from day one and you get 30 percent federal solar tax credit and savings on electricity which reduces your initial costs. The approximate internal rate of return an outright purchase provides is around 7.3 percent.
Loan Option - In this option, someone else pays for you while you get to enjoy the tax credits. As your system starts producing electricity, it helps to repay the loan payments. It is like investing in a successful business. The advantage of this option is that there are no up-front costs, and still you enjoy 30 percent federal tax credit for the entire cost of the system. During the loan repayment period of 15 years, you will be paying more than your electricity savings but from 16th year onwards you will begin reaping the benefits. You could make approximately $10000 over 25 year period without any investment since you will be saving on electricity from 16th year.
Loan option will be suitable for you if you can get a home-equity line of credit with a fixed rate of 5 percent or lower with 15 year repayment period.
You can go in for outright purchase if you are not able to get the line of credit. However, in both ways, you will be contributing to the environment by switching to solar which is a great service to the society. It is like planting 100 trees every year. You just can't imagine the impact it'll have on the community.
With a little bit of planning, you can save money considerably in the long term and save the planet from pollution for the cost of monthly payments to internet service.
The author is an expert in solar installation and has helped many to choose the right way and reap the benefits of solar Kansas City. You can get to know the details of different ways solar installation can be achieved right here.