The price of solar electricity System
Solar energy is free but the tools that may allow you to harness this free energy are not.
If you are getting ready to install a solar power system right at your home and would like to understand how much it would cost, there are three things you want to think about :
First, the cost depends on how much energy your household requires. More energy you require means more solar panels and higher cost of installation. The good thing is, the technology to harness the power of the sun is relatively cheaper than it was several years ago.
Second, the government is offering a rebate to those who will switch to alternative form of energy. That means, the government will shoulder a portion of the total cost of the system.
Third, you can get tax credits when you switch to solar energy system. The amount of tax rebate depends from state to state but the range can go from $1000 to $2000.
All these affect the overall price of your installation.
A photovoltaic system can cost roughly at $8000 to $10000 per 1kW system. This equates to $8 to $10 per Watt. An average American household with 3 bedrooms requires at least 1.5kW to as much as 3kW. Thus, installation can cost from $14000 to $30000, before rebates and tax credits.
Government rebate varies from state to state. As a reference, a standard California household that requires 1.5kW system can get as much as $4200 refund ( 1.5kW= 1500 watts x $2.80 per watt = $4200 ).
A household that needs 3kW system can get as much as $8400 ( 3kW= 3000 watts x $2.80 per watt = $8400 ).
Before, tax break goes as much as thirty percent but it is dropped to 7.5% of system cost after refund.
So an average household with 1.5kW system can get $735 ($14000 – $4200 x 7.5% = $735) worth of tax credit while the 3kW system can get $1620 ($30000 – $8400 x 7.5% = $1620) worth of tax credit.
Example A : 1.5kW system
Cost of solar electric system: $14000 Less rebate: $4200 Less tax credit: $735
Cost of the system after rebate and tax credit: $9065
Example B : 3kW system
Cost of solar electrical system : $30000 Less refund : $8400 Less tax break : $1620
Cost of the system after rebate and tax credit: $19980
Again, these are coarse guesses just to offer you an idea of the price of installing solar power system. They don’t represent real figures.
Top tips :
Energy independent home has higher second-hand value and is more preferred by house buyers. So, if you’re planning to sell your house in a couple of years, installing solar electricity system does not only provide serious saving on electrical bill, it is also a good renovation option.
If you want to finance the cost of your solar energy installation, include it in your mortgage.
If you want to reduce your electricity load, switch to energy efficient appliances. Buy electric appliances with ENERGY STAR seal.
Low energy duty means lower installation cost.
Residents of areas with higher electricity rate can benefit most on solar power system.
If you cannot afford the photovoltaic system, you can install solar hot water system that costs approximately from $2000 to $4000.
Solar energy is best for homes that are found some distance from the present power lines.
For those who want to know more about Residential Solar Energy Systems, there is more in-depth knowledge at Residential Solar Energy Systems for free.
