In the UP, we have some of the country's highest electricity rates. The cost of completed solar installations has dropped by over 50% in the last five years. Additionally, homeowners and businesses that commence construction through 2019 receive a 30% federal tax credit. This steps down to 26% in 2020 and 22% in 2021.
Together this means that a properly designed and correctly installed a solar array is one of the best investment choices you can make.
Not only do we pay more for electricity than virtually everyone else in the US (except for Hawaii, parts of Alaska, and some island residents), but our electricity rates have increased at over twice the national average. With the cost of electricity increasing by ~7% a year, energy conservation and renewable energy systems just make common sense.
With high electricity rates and decreasing installation costs, an investment in solar offers an outstanding rate of return. After the tax credit, a solar installation at $3.48 per watt can yield a ~11% rate of return during the first year! In comparison, a 30 year treasury bond yields only about 3% rate of return.