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The Great Recession has left a lot of Americans approaching retirement in a bad position, as many investors and 401K holders have seen their assets drop in value. Adding to this problem is the fact that interest rates are historically low, and one can only earn so much on certificates of deposit (CD) and other types of savings accounts.

Solar Panels: A Home Investment that Pays

Diane Hammond, a resident of Sudsbury, Massachusetts, found herself in a similar situation when she researched options for investing $30,000 to earn income for retirement.  Forbes explains how Hammond could only hope for an interest rate on a CD of about 0.4 to 0.5 percent, a low monthly income that couldn’t possibly support her when she retired. So, she looked for an alternative that would help save money and generate a decent return on investment.

Hammond has found the solution to her problem by investing in solar energy and pre-paying a 20-year lease on a solar electric system. The savings on her energy bills, coupled with renewable energy credits and other government and utility incentive programs, are far greater than what she would have earned from a savings account.

“I figure I’m going to pay off my original investment in about five years and make 20% on my money (in total, savings and [solar renewable energy credit] payments come to about $2,500 annually),” Hammond told the source. “I thought, ‘Wow, this is much better than a CD. I’m killing two birds with one stone – lowering my electric bill and getting money with interest.”

Retirement Planning for Orange County Solar Owners

While leasing works well for some consumers, purchasing a solar system is another option that can lead to great savings for future retirees. For example,  AMECO Solar customers Linda and Dan bought solar panels as a way to save money on their monthly utility bill and free up their budget in preparation for their future retirement.

Now that their solar panels are installed, they have reduced their bill to almost nothing and estimate a savings of $3,000 each year. Over the lifetime of the solar system (typically 25-30 years), their annual savings will add up to a significant amount and will result in an impressive 19% return on investment.

Find Out How a Solar Investment Works for You

Current and future retirees should consider solar installation as an investment alternative that produces a healthy ROI. Whether leasing or purchasing, solar panels could be a good investment alternative to traditional investments. For more information, contact AMECO Solar at (888) 595-9570 or email us at gosolar@th2.e81.myftpupload.com. We would be happy to evaluate your energy needs and show you how a home solar installation could give you a good return on your investment.

Last week, the Senate and Assembly passed AB 327 with a majority of the vote. Now, the bill is headed to California Governor Jerry Brown’s desk for the final signature. The bill marks some losses for the solar industry, but thanks to the hard work of CALSEIA and other solar advocates certain amendments were made so that the bill shines bright for solar as well.

A few weeks ago, AMECO Solar wrote about AB 327 and how it could negatively affect individual solar system owners along with the solar industry as a whole. At this point, there were two parts of the bill that were a cause of worry: 1) the future of the Net Energy Metering (NEM) program and 2) the possibility of a mandatory monthly charge for all utility customers.

One loss is that the monthly surcharge has passed. Whether you own solar panels or not, you will have to pay $10 a month for merely accessing the grid and using electricity.

It’s possible that solar owners will not have to pay the charge initially and will be grandfathered in, but the details of the “grandfathering provision” will be hammered out in the coming months before the bill turns into a law.

Amendments were made to the net metering portion of the bill that accomplished goals for the solar industry.

Current solar owners enrolled in the NEM program can rest easy for now. AB 327 was amended so that your contracts will be protected and you will be granted a reasonable pay-back period based on when you originally enrolled in the program.

Even better, the amendment removed the 2014 deadline of the NEM program and extended it so another 5,500 MW of solar customers can enroll in the program between now and July 2017. This extension means a lot for residential solar installation companies as NEM is a huge incentive for potential solar customers, especially as utility rebate programs are entering their last steps and closing down.

The bill also demands that the CPUC (California Public Utilities Commission) develop a new net metering program, which solar advocates have dubbed as “NEM 2.0”, by March 2014. While the prospect of a future net metering program seems like a win, it’s uncertain how the CPUC will design the program. Due to this uncertainty, CALSEIA and those that support the organization will need to be a constant presence at the legislative level so that “NEM 2.0” will be beneficial.

All eyes will be on California during these next eight months. As a solar leader in the nation, the solar policies and legislature that develop in our state inevitably have an effect on solar in other states. Once needed, AMECO Solar will request that our customers and other solar enthusiasts take action so that our voice is heard by state leaders.

If there’s anything that the city of Lancaster, California, is known for, it’s sunlight. The community located in the high desert north of Los Angeles county gets approximately 300 days of sun per year, which makes it the perfect location for widespread integration of solar power. Mayor R. Rex Parris has made it a goal for the city to be completely energy independent, or “net zero” as it’s known, within the next three years.

Among the various policies that have been adopted to make this happen is a law the requires new homes to be built with solar panels. The city has also made it clear that they will accommodate developments and commercial projects that promise to rely on renewable energy for power production.

“We would be the deepest well if you were to imagine that [sunlight] was oil,” Parris told CBS News. “And what’s oil but power? And what’s solar but power?”

Currently, the city derives about half of its electrical needs for solar power, and leads the state in terms of solar power produced per capita. Over six thousand panels have been installed on the city’s buildings, including its baseball stadium, schools and local malls. The increased reliance on photovoltaics has also helped the municipal budget situation. Deputy City Manager Jason Caudle states that Lancaster pays about 10 cents per kilowatt-hour for its solar power, a major improvement over the 18 cents it was charged by utility companies.

And contrary to popular belief that such aggressive renewable energy goals can be a hindrance to economic development, Mayor Parris reports that the city’s residents and businesses have been extremely supportive of the idea, as California solar energy has helped them make their companies more cost-effective. Here’s to the citizens of Lancaster and hoping that many cities follow their example.

California is continuing its march toward a renewable energy future. New statistics show how the growth of the solar industry has accelerated and shows little sign of slowing down for the rest of the year.

Utility Solar Propels California at the Top

The Golden State added a record-breaking 521 megawatts (MW) of solar generating capacity from April to June of this year. This was an all-time high for any state over a three month period, and made up 53 percent of the total amount added by the nation during the same time frame.

The growth in California was fueled, in part, by the completion of large-scale projects such as the California Valley Solar Ranch near San Luis Obispo. The other 41 percent came from residential and commercial solar arrays on rooftops and private property.

Pro-Solar Policies Spur Growth in Other States

After California, the next four states to add the most solar energy installations were North Carolina, New Jersey, Arizona and Texas. Many solar experts speculate that the increase in solar expansion is related to favorable state policies and more progressive energy policies.

California, in particular, has made aggressive efforts to reduce dependence on fossil fuel sources such as coal and natural gas. Other regions of the country, such as Arizona and New Jersey, have fostered growth of solar in their states with similar laws and incentive programs.

Importance of Legislature Moving Forward

It’s paramount for the solar industry and its customers to continue pursuing legislative efforts at the state and federal level. Programs like Net Energy Metering, rebates for California solar panels, and the Federal Renewable Energy Tax Credit need to be extended and renewed until solar costs become competitive with conventional power in the absence of subsidies.

Unfortunately, utility companies have stepped up their efforts to prevent solar incentive programs from being extended. Mainly because they’re concerned that their profits will decrease and they’ll lose control of the way residents generate and use electricity.

Hopefully, the state legislature can recognize that it is in the best interest of Californians everywhere, whether they have solar energy at home or not, to spur more growth in renewable energy sources. Then, perhaps, California can look forward to leading the nation in megawatts of solar energy installed not just in Q2 of 2013, but for many years to come.