Does Solar Make Sense With Low Power Usage?

I am often asked how high one's electric bill should be before solar power starts to pay for itself. Typically, power consumption totaling $100 or more per month helps to speed up the return on investment and a solar system can actually make its monthly loan payment if financed due to the power generated and sent to the grid at peak time. As an example, I financed my solar system and pay around $150 per month to service the loan, which is how much on average I would be paying PG&E for renting my electricity. I'd rather invest in clean solar energy, get the tax breaks and protect myself from utility rate increases and add value to my home at resale. So, this means I am spending nothing more for having a solar system than I would already be spending to rent my power from PG&E--it's cash flow neutral.

What if your electric bill is only $50 per month? Congratulations! It will be harder for a solar system to pay for itself in the short term, but consider the following:

You will get state and federal tax incentives.

You will protect yourself from electric power rate increases.

You will be ready for the not too distant day when plug-in hybrid and electric cars arrive. If you were to purchase a car that requires battery charging, your power usage will go up, but your solar system will keep your electric bill down.

You will be able to consider going to a solar electric water heater and save money on natural gas, even electric heating will make more sense.

You will be helping your neighbors lower their carbon footprint with the unused power that you send to the grid.

Now is the best time to consider clean solar energy, rebates are still high from the state, but will be diminishing in a few months, the federal tax credit will be going away after this year and purchasing through the Solar Community Program, combined with the city, state and federal rebates/incentives, could yield a 35% + discount!