Since Fall 2008, the American economy has been rocked by one crisis after another. Even with some stabilization and signs of recovery, it's still a hostile atmosphere for risky investments or speculation. Now, if there's one thing everyone knows about solar electric generation, it's the fact that it's very expensive: so why should anyone pursue solar in a market like this?

Because solar isn't risky. The instant your photovoltaics (PV) system is up and running, it's reducing the amount of electricity you pull from your utility, bringing down monthly bills and sheltering you from rising energy costs. And the high cost of solar is offset now by solar incentives nationwide. In some states, net cost can be reduced by 50-70 percent, making the investment not only more feasible from a cash flow perspective but introducing the possibility of truly attractive ROI.

Here's an overview of the reasons we have to be optimistic about solar today:

Tighter lending standards don’t mean that financing a solar power system is impossible
- Depending on your locations, you can lease a system. Typically your new monthly utility bill, plus your monthly lease payments, will be LOWER than what you were paying previously.
- Because solar energy systems reduce your monthly costs, a strong case can be made for your credit worthiness. If you’ve got a lender who will listen, emphasize that your ability to meet loan payments may be improved, not hindered, by the purchase of a solar energy system.
While solar panel manufacturers and other professionals will continue to experience rough waters ahead, tough economic times often lead to consolidation within a given sector. Only the strong survive, as they say. Those firms that survive will likely be those that can cut costs and best improve panel efficiency. In the long run, the recession may have a salutary effect on the solar sector at large.
While the price of oil has dipped since highs seen July 2008, projections suggest a persistent upward trend. Energy price inflation will continue, even in electricity markets.
- A solar energy system derives value by enabling homeowners and businesses (1) to lower their monthly energy costs, and (2) to "lock in" a per kWh price for the electricity generated by their system.
- As retail electricity prices go higher, owners of PV systems are shielded from these price hikes. And with an average lifespan of about 25 years, such systems are an investment that consistently produces returns (i.e., electricity) over a long time frame.
Both federal and state governments have shown marked support for solar power and other alternative energy sources throughout 2009. While some state solar rebates have been scaled back or eliminated, still others have been enacted or improved, and the federal government's tax credit--equal to thirty percent of system costs--is a boon nationwide.

In short, if you’re thinking about buying a solar energy system, you should be aware of current trends and market conditions. You should know that solar power remains, on a per kWh basis, more expensive than electricity that’s produced from conventional sources, like coal and natural gas.

But you should also understand that, despite the tough times, the value proposition of solar remains unchanged: by lowering the amount of juice you buy from the grid each month, a solar energy system can help you (1) lower your monthly electric bill, (2) reduce exposure to electricity price inflation over time, (3) potentially free up more cash each month, which can be applied to meet other expenses, and (4) lessen your reliance on carbon-intensive sources of power.

So don’t rule out a PV system just because it’s expensive. Think about the many reasons why solar makes sense. You may find that solar’s long-term benefits make it an investment so reliable, it can be safely pursued even in uncertain times.

Solar Value In A Slow Economy