Will a home solar power system really provide the cheapest electricity and save you money? A quick search of internet provides the answer, "Of course!" Aside from enthusiastic optimism and vague assurances of "savings," though, it's hard to find details.
If you're considering investing in a residential solar power system, you want the details.
You want hard facts, exact numbers, and financial formulas.
This article will try to provide that for you.
One of the reasons exact numbers are hard to find online is because the figures vary depending on your home, city, state, power company, etc.
But if you do a little research and follow these basic instructions, you'll be able to determine how much money you'll save from a solar power system and how long it will take for the system to pay for itself and at what point you'll start generating the cheapest electricity - the free kind.
1.
Find the Cost of the Solar Power System Shop around, find a solar power retailer you like, and get a quote for equipment and installation.
If you plan to build your own solar panels, add up the cost of tools, materials, and installation.
It's safer to overestimate this cost and come in under budget than to underestimate the cost and go over your budget.
For example, let's say a professional solar power system installation costs $5000.
2.
Subtract Tax Deductions/Credits In the USA, the federal government provides a tax credit for up to 30% of the cost to homeowners that install a renewable power source in their home.
Depending on where you live, state and city governments may also offer tax breaks.
In the case of our imaginary $5000 solar power system, we would get a credit for 30% of the cost, or $1500.
This would bring the total cost of the solar power system down to $3500.
3.
Estimate Average Daily Solar Electricity Generated How much cheapest electricity your can generate per day varies depending on location, time of year, weather, number of solar panels, etc.
The best way to get a reliable number is from the solar panel distributor or manufacturer.
If you build your own solar panels, you'll have to estimate it yourself from the average electricity generated by the solar cells you use.
For example, let's say a solar panel generates 5 kilowatt-hours (kWh) of electricity per day, and you have two solar panels.
You can generate 10 kWh/day.
4.
Find the Cost of Electricity This is simple.
Just check your power bill and see how much you power company charges you per kilowatt-hour of electricity.
For example, let's say its $0.
12 per kWh.
5.
Do the Math Multiply the kilowatt-hours of solar electricity generated per day by your power company's kilowatt-hours cost.
This will tell you how much you save per day on your power bill.
In our example, our solar panels generate 10 kWh of the cheapest electricity per day.
The power company's cost for one kWh is $0.
12.
So 10 kWh times $0.
12/kWh comes to $1.
20 per day saved off your power bill.
This may not sound like a lot, but it adds up to $36 per month, and $438 per year.
At this rate, the solar power system will completely pay for itself in about eight years.
Any electricity generated after that point is the cheapest electricity possible - free electricity!
If you're considering investing in a residential solar power system, you want the details.
You want hard facts, exact numbers, and financial formulas.
This article will try to provide that for you.
One of the reasons exact numbers are hard to find online is because the figures vary depending on your home, city, state, power company, etc.
But if you do a little research and follow these basic instructions, you'll be able to determine how much money you'll save from a solar power system and how long it will take for the system to pay for itself and at what point you'll start generating the cheapest electricity - the free kind.
1.
Find the Cost of the Solar Power System Shop around, find a solar power retailer you like, and get a quote for equipment and installation.
If you plan to build your own solar panels, add up the cost of tools, materials, and installation.
It's safer to overestimate this cost and come in under budget than to underestimate the cost and go over your budget.
For example, let's say a professional solar power system installation costs $5000.
2.
Subtract Tax Deductions/Credits In the USA, the federal government provides a tax credit for up to 30% of the cost to homeowners that install a renewable power source in their home.
Depending on where you live, state and city governments may also offer tax breaks.
In the case of our imaginary $5000 solar power system, we would get a credit for 30% of the cost, or $1500.
This would bring the total cost of the solar power system down to $3500.
3.
Estimate Average Daily Solar Electricity Generated How much cheapest electricity your can generate per day varies depending on location, time of year, weather, number of solar panels, etc.
The best way to get a reliable number is from the solar panel distributor or manufacturer.
If you build your own solar panels, you'll have to estimate it yourself from the average electricity generated by the solar cells you use.
For example, let's say a solar panel generates 5 kilowatt-hours (kWh) of electricity per day, and you have two solar panels.
You can generate 10 kWh/day.
4.
Find the Cost of Electricity This is simple.
Just check your power bill and see how much you power company charges you per kilowatt-hour of electricity.
For example, let's say its $0.
12 per kWh.
5.
Do the Math Multiply the kilowatt-hours of solar electricity generated per day by your power company's kilowatt-hours cost.
This will tell you how much you save per day on your power bill.
In our example, our solar panels generate 10 kWh of the cheapest electricity per day.
The power company's cost for one kWh is $0.
12.
So 10 kWh times $0.
12/kWh comes to $1.
20 per day saved off your power bill.
This may not sound like a lot, but it adds up to $36 per month, and $438 per year.
At this rate, the solar power system will completely pay for itself in about eight years.
Any electricity generated after that point is the cheapest electricity possible - free electricity!
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