How Solar Interest Rates Will Impact You In 2023
If you’re a Las Vegas homeowner looking to help the environment and your budget in 2023, installing rooftop solar is an excellent option. While there are many benefits to going solar, you need to pay attention to interest rates.
These can affect how many panels you can install upfront and how much money you can save over time. While it’s true that interest rates rose in 2022 and may go up even more in 2023, it’s still a great time to go solar in Las Vegas; in this article, we’ll tell you why.
Interest Rates Affect Your Overall Cost
Although going solar can significantly decrease your electric bill over the long term, there is a significant upfront cost for the panels and batteries. Because Nevada’s average solar system cost is around $25,000, most people prefer to finance rather than purchase outright.
Depending on the terms of your loan, the interest you pay can increase your overall cost by thousands of dollars.
Interest Rates May Continue To Rise in 2023
To curb rising inflation, the Federal Reserve Board raised interest rates four times in 2022, and experts predict further increases in 2023. So, the longer you wait, the more you may pay for solar in terms of higher technology costs (due to inflation) and interest throughout your loan.
You Can’t Time The Market — Or The Fed
Interest rates are like the stock market. Although we can look to the experts for forecasts, we can’t know with certainty when and how the Federal Reserve Board will act to raise or lower them again.
Even though interest rates are high now and may increase more in the coming months, you should still consider purchasing in 2023. By locking in a rate, you can take advantage of current panel prices and government incentives that can help offset the higher interest rate.
How To Choose Your Solar Panel Financing
The first step to financing your solar panels is to do your research. You should look into the options available and compare them in terms of interest rates, repayment terms, and fees. You should also read the fine print carefully to understand all the terms and conditions involved before you sign on the dotted line.
- Shop around.
- Consider your credit score.
- Compare apples to apples.
- Ask questions.
- Read reviews.
- Compare rates & terms.
- Weight your options
- Get everything in writing.
Solar Incentives Can Save You Thousands
A great reason to invest in solar now rather than waiting for interest rates to drop is to take advantage of government incentives and rebates. You can claim the solar investment tax credit at the federal level, also known as the ITC, on your federal tax return.
The ITC deducts 30% of the entire system cost from the taxes you owe. It’s scheduled to phase out by the end of 2023 unless Congress extends the credit, so don’t miss out on it.
Save More With Net Metering
NV Energy’s net metering system allows Las Vegas residents with rooftop solar to feed extra energy into the grid, essentially running your electricity meter backward. By encouraging self-generation, net metering reduces the electricity you need to purchase from the utility, lowering your bill.
On top of that, owners of net-metered systems can sell excess generation to local utilities. Not only do you save on your household energy bill, but you can also make money in return!
Lock In Your Las Vegas Rate & Incentives Now
Are you a Las Vegas or Henderson homeowner ready to go solar in 2023? Now is the time to take advantage of government incentives and lock in your interest rate before it increases again. Increase your home’s resale value and go green by purchasing your solar system from Lifetime Solar today.