HomeSolar EnergyDemystifying the Cost of Solar Power: A 3-Point Breakdown

Demystifying the Cost of Solar Power: A 3-Point Breakdown


In the solar power industry, the biggest concern voiced by customers is that solar power is tremendously expensive. How can you help your customers overcome this obstacle and realize that they will save money by switching to solar power? Below are three things that you should discuss with your clients to help them realize solar power is, in fact, affordable.

Demystifying the Cost of Solar Power: A 3-Point Breakdown

Tax Credits

Everyone knows that switching from fossil fuels to solar power is better for the environment– even the government. Federal and state governments provide tax credits to encourage individuals and businesses to switch to greener power solutions. These tax credits can help to significantly alleviate the initial costs associated with installing a solar power system.

For example, the Federal Tax Credit for solar energy allows your customers to claim up to 30% of the cost of their new solar system, including both the equipment and installation fees.

However, you should also let your clients know that this credit can only be applied to taxes that they owe the federal government. While they will not see this credit in the form of a refund, this credit can be carried over and applied to the federal taxes they owe each year. By pointing out this loophole, you will show your clients that you have their best interests at heart and truly want to make solar power affordable for them.

In addition to federal tax credits, most state governments also offer tax incentives. While these incentives vary from state to state, every tax credit your clients can apply will help alleviate the burden of installing a solar power system.

Reduced Costs Over Time

While the initial setup cost might be expensive, the best way to persuade your clients is to explain that their energy bills will significantly decrease with solar power. If your clients are producing their energy, why would they need to pay a power company to provide it to them? Their electricity bill could be $0! Imagine how much money they could save if they never had to pay for electricity.

Even if they exceeded the amount of energy their solar power system produces and they had to pull some energy from the grid, their electricity bill would still be significantly less than if they had to pull all of their energy from the grid. By pointing out the reduced month-to-month costs, you will be well on your way to helping your clients realize how affordable solar power is in the long run.

Net Metering

Once your clients have their new solar power system installed, they can also make money off of the power their system generates. “How is this possible?” your clients may ask.

Explain to your clients that a solar power system will often generate more power than is used by its home or business. What can your clients do with all of this extra energy they’re producing? They can sell this extra energy to the grid. But, some states and utility companies don’t send a check out for energy not used. Instead, they will credit your power bill and put it toward the next month. Be cautious that if you do not use up all the credits from the utility company, they may zero them out at the end of the year and start over. In addition to potentially making a profit, selling power to the grid allows clients to alleviate the energy crisis beyond their own homes or businesses.


While switching to solar power may initially sound expensive, there are many things your clients can do to alleviate those costs and save money in the future. They can receive tax credits from federal and state governments, reduce and even eliminate their monthly energy bills, and even sell extra energy to make money off of their solar power system.

Your customers often don’t know that these options are out there. They need someone who can explain how affordable solar power can be. By pointing out everything that your clients can do to reduce their costs, you will encourage them to finally take that next step and purchase a new solar power system.

Earthava Team
Earthava Team
A collective of experts in Renewable Energy, environment and green living.

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