Solar Energy Cost
Would you like to own your electricity? Want to stop worrying about rate inflation from your utility company, charging you whatever they like? Did you know that rates have been rising by about 6% each year in California for example? They will only keep going up and up unless you do something about it!
By installing a solar electric system you can SAVE MONEY, break free from the clutches of your utility company and HELP the Environment too.
Only 20 Years ago, solar energy cost 7 times as much. Advanced technologies have contributed to the enormous decrease in price, but it is mainly due to the increase in manufacturing volumes, as more and more people realise the benefits of solar energy.
There’s more good news. Solar energy cost will continue to decline as the market continues to grow, making it even more affordable.
Governments too have realised the benefits. Incentives are available form state, federal and local governments, as well as some utility companies. Check out the DSIRE websiteto find out what’s available in your area (USA only).
Another cost benefit is that you will get paid for the excess electricity you produce through a system called – Net-metering.
$ – Just how much does solar energy cost? – $
It varies. Depending on the size of your household, the amount of electricity you use, the particular solar energy system you choose, how much sunshine you receive in your area and available government funding to name only a few.
As a very rough guide, depending on the above conditions – - -
- A solar hot water system will cost between US $2,000 and $4,000.
- A photovoltaic system will cost between US $8,000 and $10,000 for a 1kW system. (or $8 – $10 /Watt)
An average American family, living in a 3-bedroom home will require a 1.5 – 3kW system, which will cost between US $13,000 and US $27,000, before rebates.
Lets take a couple of example of a Californian household to illustrate just how much you can save with all these incentives:
An average family needing 2.5 Kilowatt system –
(current electricity bill between $50 and $75 per month)
Cost of Solar electric system incl. Installation: $22,500
LESS: Government Rebate: – $7,000 *
LESS: Tax credit: -$1,163 **
You pay only: $14,337
An average family needing 3 Kilowatt system –
(current electricity bill between $75 and $100 per month)
Cost of Solar electric system incl. Installation: $27,000
LESS: Government Rebate: – $8,400 *
LESS: Tax credit: -$1,395 **
You pay only: $17,205
Save even more with Net Metering each year.
* (2.5 Kw system = 2500 watt x $2.80 per watt rebate = $7,000)
(3Kw system = 3000 watt x $2.80 per watt rebate = $8,400)
** (7.5% of system cost after rebate. $22,500 – $7,000 x 7.5% = $1,163)
(7.5% of system cost after rebate. $27,000 – $8,400 x 7.5% = $1,395)
As a rough guide: Add .5 to your system size for each additional $25 on your bill and $4,500 to the cost before incentives.
PLEASE NOTE that these prices are only estimates and will vary depending on many different factors that needs to be taken into account for each specific installation.
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