What is Solar Power for the House?
Solar power systems are a great option for homeowners who want to lower their electric bills and reduce their carbon footprints. They can also have higher home values. These benefits come with substantial installation and maintenance expenses, and the magnitude and extent of the benefits can vary from one house to the next.
This article will assist homeowners in making the financial calculations necessary to determine whether solar energy is feasible for their homes.
KEY TAKEAWAYS
- If you want to be green, consider installing solar panels in your home.
- Solar power is good for the environment, but it can also make you money by selling excess power back to the grid.
- Although solar panel costs have fallen in recent years, they can still be very expensive to install and maintain.
- Solar panels work best in homes with a lot of sun throughout the year.
- Be sure to fully understand the economic and social factors before committing to solar power.
Understanding Solar Power
It is easy to determine whether solar power makes economic sense for your home. Calculate
- A solar power system costs about $
- Calculate how much energy it will generate.
- This will allow you to compare the price you’d pay for the same amount.
- This calculator will show you how long it will take to pay off your initial investment in energy savings.
- It’s a good idea if the system can pay for itself within five years and you have enough capital to start it. You should carefully consider whether you need to save more or borrow money to pay for the system.
However, in practice, things aren’t always so simple. These factors can vary greatly, which can cause the benefits and costs of solar power for two homes to be drastically different.
However, some tools may be of assistance. Solar Reviews offers a calculator that quickly shows you the costs and savings of a solar power system for every region in the USA. If you’re new to solar energy or want to learn more about the cost model, calculators like these are a great place to start.
Solar Power Costs for Homeowners
First, let’s look at the cost of installing a solar power system in your home. A residential solar power system costs between $3,500 to $16,000 on an “average” basis. 1
The wide range of costs is why? The wide range of costs is that it all depends on how large the system you choose to install and what type of panels you use. No matter what system you choose, solar power is capital-intensive. The main cost of owning a system is the upfront purchase of the equipment. The largest component of the overall cost will be the solar module.
How much will you save?
You can predict the amount of energy savings per year by knowing upfront how much a solar power plant will cost and how much energy it will produce.
This calculation is tricky because it all depends on the current price of electricity. Utilities charge residential customers a flat electricity rate regardless of when they consume it. Instead of compensating for the high cost of peak electricity production, homeowners’ solar power systems offset the electricity they pay, which is closer to the average price of electricity production.
This will depend on how many rate changes occur under the plan and their timing. Utilities in certain locations use similar pricing schemes. These rates can vary according to seasonal demand fluctuations. Solar power is more expensive if it has higher summer rates.