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Eco-friendly homeowners on Long Island rely on a variety of different green-friendly materials and techniques to achieve the goal of an energy-efficient home. From energy star appliances to LED lighting appliances, these tools can help, but solar panels have been on a rise of popularity on Long Island in the recent decade. At first, installing a solar electric system on your home was seen as a hefty investment due primarily to the high prices of the solar panels itself. Over ten years ago, in 2009, the cost of installing a solar panel installation was $8.50 per watt. Today with more efficient panels and operating systems, the price has dramatically reduced by 65 percent to just $2.96 per watt.  For a standard 6 kW residential solar system, the average cost has fallen from $51,000 to only $17,760 in about the past decade.

What are the start-up costs of a solar electric installation?

The cost of outlaying funds for your solar electric system can vary dramatically per Long Island households. Some of the factors that are considered are the size of your home, amount of sunlight, and, most importantly, your energy consumption. For example, a resident in Smithtown might have an electric bill of $120 per month. All factors aside, we would most likely recommend a 5 kW solar electric system. This type of solar electric system would require an outlay between $15,000-$20,000. Generally, this would cover the material, town & utility applications, and installation labor of the three components of a system, which include:

Solar panels – to capture the sun’s energy rays and transform them into electrical energy.

Racking materials – the rail and hardware to mount the solar panels

Inverter- converts the stored energy to the voltage needed to operate electrical equipment.

For you to get a better idea of the startup cost for your Long Island residence, contact one of our team members via the contact form.

Are there incentives to help pay for my solar electric installation?

Yes, fortunately, the New York State and Federal government are committed to using renewable energy sources and rewarding homeowners that choose to do so. The federal solar investment tax credit (ITC) has been in effect since 2006 and since then has funded many solar investments. Until 2019 the credit was a 30 percent tax credit for the installation of a solar electric system. This year, in 2020, the incentive is now a 26 percent tax credit for an installed system. So, for a $20,000 installation, you would see a rebate of $5,200 from the IRS. However, you do need to act fast, as previously mentioned the credit is already down from 30% and will reduce further until 2022 until there will be no longer a federal credit after the year 2023. In addition to the Federal tax credit, NYS offers a tax incentive of 25 percent for an installed solar electric system, which is capped at $5,000. Sunshine Plus Solar was involved heavily with state municipalities with the creation of the state credit. So, combined a Long Island homeowner will receive up to a 51 percent tax credit for the year 2020.

How long will it take to see a positive return on investment (ROI) on my solar installation?

Between the upfront costs for the installation and the tax incentives that you receive the average typical ROI is within seven years of the installation date. This does of course depend on a few variable factors such a system size, and the cost of the outlay of the system. On average a homeowner can expect to save around $1,500 per year on their electrical bill after switching to solar. You can then determine your annual savings on your electric bill creating your solar electric installation ROI. To help you determine your ROI further all of our solar electric systems are activated and include monitoring systems that allow you to see the operation of your panels daily.

Call 631-422-3500 today to speak with one of our friendly team members to discuss your solar panel needs, costs, and the potential payback period on your home.