Now’s the Best Time to Purchase a Photovoltaic System
Consumers who have had reservations regarding the purchase of a photovoltaic system (PV) may not have a better time to do so than now.
Because of discontinued financial support or subsidies in Europe for PV, there is an oversupply that has caused the market to lower prices (more than a 10-percent reduction in cost) on modules. The cost savings when applied directly to the purchase price reduces the time it takes to pay off the system. This article will provide additional reasons why today is the best time to make your purchase of a photovoltaic system.
The existing tax credits that are available will not be here forever, which means now is the time to take advantage of them. The state of Hawaii tax credit of 35 percent of the system cost with a limit of $5,000 per system may not be around much longer because of financial pressure to keep government on a sound financial footing. The federal tax credit of 30 percent of the total cost should not go away soon, but anything can happen with the way government has been working. The important thing to remember is that these incentives make a PV affordable and when they are discontinued, the system cost will be greater to you.
The cost of energy that we pay per kilowatt hour has increased from under 26 cents per kilowatt hour at the beginning of the year to over 31 cents per kilowatt hour this month. The January rate of 26 cents per kilowatt hour reflected a rate increase that was approved by the PUC. If you have seen an increase in your energy bill from last year to this year, you are well aware of the sizeable increase to your electric bill. It was recently announced that HECO has filed for an additional rate increase and, if approved, will increase the prices you pay for electricity even further. The escalating energy cost will only be greater in the future when the world economy improves and the demand for energy causes oil prices to rise again.
A short time ago after the tax credits were applied, the average time to pay off the remaining cost of a photovoltaic system through a reduced electric bill was seven to eight years. As a result of rate increases from escalating energy cost, competition in the market place, and lower cost for PV modules, the average pay-back time has been shortened to five to six years, once you have a system installed. The shorter time it takes for the system to pay for itself also means the sooner the future savings will be realized. The future PV savings can be spent on other items or just be saved for future expenses.
The purchase of a photovoltaic system is not only a price issue, however. The quality of the module, the installation/flashings used on the roof, manufacturers’ track records, and contractors, attention to details should all be considered.
Pacific Islands Construction believes that an informed consumer will make the best decisions, and the company strives to provide customers with the best information available. The company also provides third-party reports, shows the differences in the module construction, and provides details on all phases of installation or construction.
Contact Pacific Islands Construction by calling 841-7756 for a consultation or visit the website at pacificislandsconstruction.net. The company’s goal is to provide complete satisfaction now and into the future by providing customers with the best constructed and installed solar energy system.