Why are we doing this now?

In this time of pay cuts and looming layoffs, it seems a bit ambitious to do this project, but here's why the timing seems right:

• Income tax credits (not deductions) for 30% of costs for solar systems. The 2009 economic stimulus package removed the $2K cost limit caps.
• Utility incentives for solar systems. Snohomish County PUD Solar Express program launched in March 2009. We know from past experience that PUD programs can eventually run out of funding, so we didn't want to miss out this time.
• Washington State "5101" Production Incentive (minimum $0.15/kwH generated, even if we use it ourselves!) has been extended to 2020. The sooner we install, the more time for payoff.
• Washington State sales tax exemptions (solar water heat ends June 2009; photovoltaics extended to June 2013). With our current sales tax rate of 8.6%, this is pretty significant.
• The cost of photovoltaic modules has dropped significantly over the last 6 to 12 months.
• We already replaced our roof in 2007. (PUD incentive program requires at least 15 years remaining roof life.)
• We need a new hot water heater anyway (our old tank has 6 year warranty, but it's now more than 10 years old and isn't working as well).
• We already took some steps to reduce our electrical demand (such as replacing old windows).
• Low interest rates for loans (we were already thinking about refinancing our mortgage anyway, but the final push was deciding to use it to fund our solar projects too; we prefer the longer loan term compared to PUD's 2.9% 10-year program). We think inflationary pressures will push up borrowing costs in the coming years.
• Utility electric rates will continue to increase. Although we've historically had cheap hydroelectricity in the Northwest, those days are over. Local utilities will need to fund new generation sources as demand increases. Nationwide "smart grid" and greenhouse gas "cap and trade" policies may drive up local rates in the future.
• It's good investment for ourselves, our home, the environment, local business, and America. We'll get a guaranteed return (unlike other investments these days), and it should hold its value (unlike a car).
• It's cool and the right thing to do. More "renewables" means less pressure on utilities to build plants that generate CO2 emissions.