Cheap Solar Panels - Calculating the Return on Investment For Your Home Energy
Is setting up solar panels for homes in your house a smart long-term investment, or possibly a money pit? If it really will cover itself, the length of time will that take? What will be the ROI?
This inquiry is hard to reply to because there are so many different considerations, with out two peoples situation is alike. The amount of solar panels for homes, how much power the house uses, the price of electricity, geographic location, and even season can all affect your return on investment. You'll need to do the calculations yourself for the individual situation, and this information will let you know that.
The First Step: Expense of Residential Solar Panels
First, obtain a quote on that your panels will surely cost including installation. If you plan to develop your personal panels, this is sometimes a bit harder to calculate. However, its safer to overestimate the expense to create the panels instead of under estimate.
As an example, lets say you pay $3000 for a solar power system, however, with a complete solar power system blueprint, like from Earth4Energy, they've proven its possible to build your own cheap solar power panels for less than $200. This is why much money the panels will have to save you when you break even. Money it will save you after that point is pure profit, a bang for your buck.
The Second Step: Subtract Tax Credit
The government grants home owners a tax credit for installing residential solar panels that is equivalent to 30% of the cost of the solar power system. Should you make your own cheap solar panels, keep the receipts and make careful records, in the event that of the audit.
Subtract the tax credit from the expense of your panels. Here is your new breakeven point. For instance, should your panels set you back $3000, then 30% of that you will find $900. If you subtract $900 from $3000, you receive $2100-and that's how much money you'd have to save to break even in your investment.
The Third Step: Estimate Daily Solar Electricity Generated
Next, you should know the amount electricity your solar power systems can generate each day. This number may vary daily determined by cloud cover, daylight hours, and geographic location, so you'll need to get the average number from your manufacturer or distributor. In case you construct your own Cheap Solar Power Systems, you'll must estimate it yourself. In the interests of example, lets just say your house-built solar panel systems generate about 5 kilowatt-hours (kWh) of electricity per day.
The Fourth Step: Expense of Electricity
Look at power bill and find out just how much you have to pay per kWh of electricity. As an example, lets say its $.15 per kWh.
The Fifth Step: Do the Math
Find out how much you are conserving your power bill daily by multiplying the amount of solar electricity generated through the cost per kWh. For instance, in case your cheap solar power panels generate 5 kWh every day, and something kWh costs $.15, then you certainly save $.75 on your own power bill each day. This might not appear to be much, nevertheless it accumulates quickly to $23.25 each month and $273.75 a year.
Finally, to determine just how long it will take on your solar powered energy home to purchase themselves, divide the cost of the cheap solar panels (minus the tax credit), and divide it by how much money you save per month. As an example, that could be $2100 divided by $23.25. It makes sense 90 months, or seven and a half years. Or if perhaps you built your own personal with Earth4Energy your breakeven point will be even less and worthy of looking into. Any money saved after that is pure ROI.
Setting up residential solar technology by building your own cheap solar panels is surely a great financial investment and a good contribution to the environment to get a greener world.
This inquiry is hard to reply to because there are so many different considerations, with out two peoples situation is alike. The amount of solar panels for homes, how much power the house uses, the price of electricity, geographic location, and even season can all affect your return on investment. You'll need to do the calculations yourself for the individual situation, and this information will let you know that.
The First Step: Expense of Residential Solar Panels
First, obtain a quote on that your panels will surely cost including installation. If you plan to develop your personal panels, this is sometimes a bit harder to calculate. However, its safer to overestimate the expense to create the panels instead of under estimate.
As an example, lets say you pay $3000 for a solar power system, however, with a complete solar power system blueprint, like from Earth4Energy, they've proven its possible to build your own cheap solar power panels for less than $200. This is why much money the panels will have to save you when you break even. Money it will save you after that point is pure profit, a bang for your buck.
The Second Step: Subtract Tax Credit
The government grants home owners a tax credit for installing residential solar panels that is equivalent to 30% of the cost of the solar power system. Should you make your own cheap solar panels, keep the receipts and make careful records, in the event that of the audit.
Subtract the tax credit from the expense of your panels. Here is your new breakeven point. For instance, should your panels set you back $3000, then 30% of that you will find $900. If you subtract $900 from $3000, you receive $2100-and that's how much money you'd have to save to break even in your investment.
The Third Step: Estimate Daily Solar Electricity Generated
Next, you should know the amount electricity your solar power systems can generate each day. This number may vary daily determined by cloud cover, daylight hours, and geographic location, so you'll need to get the average number from your manufacturer or distributor. In case you construct your own Cheap Solar Power Systems, you'll must estimate it yourself. In the interests of example, lets just say your house-built solar panel systems generate about 5 kilowatt-hours (kWh) of electricity per day.
The Fourth Step: Expense of Electricity
Look at power bill and find out just how much you have to pay per kWh of electricity. As an example, lets say its $.15 per kWh.
The Fifth Step: Do the Math
Find out how much you are conserving your power bill daily by multiplying the amount of solar electricity generated through the cost per kWh. For instance, in case your cheap solar power panels generate 5 kWh every day, and something kWh costs $.15, then you certainly save $.75 on your own power bill each day. This might not appear to be much, nevertheless it accumulates quickly to $23.25 each month and $273.75 a year.
Finally, to determine just how long it will take on your solar powered energy home to purchase themselves, divide the cost of the cheap solar panels (minus the tax credit), and divide it by how much money you save per month. As an example, that could be $2100 divided by $23.25. It makes sense 90 months, or seven and a half years. Or if perhaps you built your own personal with Earth4Energy your breakeven point will be even less and worthy of looking into. Any money saved after that is pure ROI.
Setting up residential solar technology by building your own cheap solar panels is surely a great financial investment and a good contribution to the environment to get a greener world.
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