The benefits of solar energy in homes

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The benefits of solar energy in homes

Solar power systems can be a fantastic option for homeowners who want to lower their electric bills and decrease carbon footprints. It can also result in increased home value. These advantages come with significant cost of maintenance and installation. The amount of gains will differ from one home to the next.

This article will assist homeowners in making the necessary financial calculations to determine if solar energy is feasible for their home.

Understanding Solar Power System

It is straightforward to decide whether solar panels are installed and it make financial sense to your house. Calculate:

  • Cost of the solar power plant
  • It will generate a great deal of energy
  • You’d pay more to get the same energy.
  • How do you expect your initial expenditure in savings on energy to pay off?
  • What is the time frame before the government can pay off its debts in five years?

If it is and you’re able to pay the capital upfront, it’s likely a good idea. You should carefully consider whether you’ll need to save{ more|| up} or borrow money to pay for the system.

However, in practice things don’t always go as smoothly. The factors that affect your solar panel can be very different and cause the advantages and costs that solar panel systems bring to two houses to be very different.

However, there are some tools that can assist. Shneyder Solar has a calculator that quickly provides you with a cost estimate when you set up solar power plants in each region of the U.S. This calculator is a good starting point in the event that you’re not familiar with solar energy or want to get an understanding of the cost-based model.

We’ll guide you through all the crucial factors to think about when calculating the potential savings and cost of solar power for your home in the rest in this post.

The Solar Power Costs for Homeowners

We’ll first take a look at the upfront costs of installing solar panels to your house. A residential solar panel system will cost you between $3500 and $16,000 in the beginning.

The wide range of costs is why? The primary reason is the price of a system will vary depending on its size and what type of panel it has. Whichever device you decide to install, solar panels can be expensive. The primary cost of having a system is the upfront cost of purchasing the equipment. The biggest component of the overall expense is the solar module.

There may be additional charges. Inverters convert the current source from the panel into alternating electricity that is used by household appliances and process to calculate (if needed to determine the amount of power that was created) the various components of the housing such as cables, wiring, or equipment are required for installation. Many homeowners are also considering battery storage. They have been historically costly and not needed if solar power generation is paid for by the utility. It is also important to consider the labor cost of installing batteries.

There are additional expenses running and maintaining the PV array. The inverter and the batteries in the event of any are required to be replaced every few years.

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Subsidies

Although the above cost are relatively straightforward, and a solar solar company can often offer a price for these for a householder local or government electric assistance is more difficult. Although incentives for solar installations change often, they are not a problem for the US government has already approved solar tax credits of up to 30% of the cost to install the solar system.

The Database of State Incentives for Renewables & Efficiency website contains more information about incentive programs in the U.S., including programs within states. Similar information can be found on websites of solar advocacy and government in other countries. Visit your local utility provider to find out whether they provide incentives to solar installation and what their policies are regarding grid interconnection as well as selling power surplus to it.

Calculating Your Energy Production

When you calculate your system the other factor that needs to consider is how much energy your system will produce. Even for experts the process can be a complicated calculation. Let’s review the fundamentals.

The solar radiation levels in your home are a crucial consideration. It is all about the amount of sunlight you get. Although it is more beneficial to install solar panels closer to the equator, there are other factors to consider. The National Renewable Energy Laboratory (NREL) creates maps across areas in the U.S. that show solar radiation levels, and its website provides precise information on specific locations within the U.S.

The direction of your home’s roof is equally crucial. A south-facing roof with no obstructions from trees or other structures to sunlight maximizes the energy of sunlight. The panels can also be erected on support structures outside of the house and placed far from the home. The installation will cost extra for hardware and cables.

The size of your system is also crucial. The theoretical electrical output potential of solar panels is calculated in Watts. The typical output of PV systems, also referred to by the term capacity factor, is between 15 percent to 30%.6 A household that has a 3 kWh home system that operates at a capacity of 15% factor could produce about 3 kWh x 15 x 24 hours/day = 3,942kWh/year. This is roughly one-third the average electricity consumption of the U.S.

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How much will you save?

It is possible to estimate the amount of energy savings per year by knowing ahead of time how much solar power plants will cost as well as the amount of energy it will generate.

It isn’t an easy task since everything is contingent on the amount you spend on electricity. Residential customers are charged a set cost for energy regardless of when it is used. The solar energy system is utilized to offset the electricity price that homeowners pay, instead of compensating for the heavy price of electricity generated at peak hours. This is more in line with the{ average|| typical} cost of power generation.

Many U.S. utility companies have implemented pricing systems that allow homeowners to pay various rates throughout the day to reflect the price of electricity. This is why there are higher rates in the afternoon and lower rates during the night. A region with this kind of variable rate could consider installing a solar PV array. Solar energy could offset the most expensive electricity.

It will be contingent on the amount of rate changes that occur in the scheme and the timing they occur. Similar pricing strategies are employed by utilities in certain locations. They can be subject to seasonal demand fluctuations. Solar power is more expensive if it has higher summer rates.

Tiered pricing plans are used for certain utilities in order to adjust the marginal price of electricity when consumption rises. This strategy allows the benefits of a solar system to depend on how much electricity is used. In certain areas, rates increase dramatically as people consume more. Large houses with high energy demands may be the most required of solar panels to offset costs of consumption.

It may be possible for certain homeowners to sell solar power back to the grid in order to help save cash. This is known as net-metering across the United States. Residential consumers use the electricity they generate from the solar array to offset the power consumed elsewhere. Monthly electric bills are a measure of net energy consumption. There are different rules and regulations pertaining to net metering that are applicable to each region. For more information homeowners are able to look up the DSIRE database. They should also contact the local utility.

Calculating Solar Power Costs

Now you’ll be able to do a final calculation and assess the value of solar power for you.

You can utilize Discounted Cash Flow (DCF) to assess the overall costs and benefits of a solar system. The first outflows of the project will be the initial installation cost, net of subsidies. The inflows will come later in the form offset electric costs (both directly and through net metering).

Instead of employing DCF, solar power’s viability is often determined by calculating its levelized costs of power (LCOE) and comparing that to the electricity cost charged by the local utility. Cost per Kilowatt Hour (or C//kWh) is used to calculate the LCOE for solar panels for the home. It is the same format as electricity bills. The following equation can use to calculate the LCOE:

LCOE ($/kWh) equals Net Present Value (NPV) of Lifetime cost of ownership ($)/Lifetime Energy Output ($kWh).

The useful life span is typically 25 to 40 years.7 To determine the NPV, the module must also take into account maintenance costs. The LCOE can be compared with the price of electricity provided by an utility. Remember, the relevant price is the one that occurs in the peak solar production.

Is Solar Power Worth It?

When you’ve finished all of these calculations, you will likely be left with one number which is the time it will take for a solar system to pay for the energy bills. It is possible to see the system achieve this goal within five or more years if you live in a sunny part of the country, with significant costs for utilities. Others may need to wait between 10 and 20 years before they reach the point.

The fact is that the majority of homeowners will realize the advantages of solar power systems eventually. It may take several years before they realize the benefit. It is often a matter of whether it’s worth it to invest in a system of this kind. These factors include the length of time you’ll be at residence, the types of subsidies offered, and whether or not you’re concerned about the environment.

The advantages and disadvantages in solar power panels to your house

Like all things is not without its benefits and disadvantages. But, you might find that some of the cost can be offset with the environmental benefits and a lower carbon footprint. This is more crucial than a purely financial evaluation.

Solar Energy Pros

  • You can cut down on your carbon footprint by using green energy sources
  • You can also sell the excess energy you’ve generated using net meters
  • Certain tax credits from the federal government may be accessible to you

Solar Energy Cons

  • Maintenance and installation costs are extremely high.
  • Solar works only when there is sunlight
  • Every few years, the components of the system need to be replaced
  • Some tax breaks might have been canceled or are set to expire.

Can a house be powered by solar power on its own?

It’s not often possible. Solar power only operates when there is sunlight. When it’s cloudy or dark, it doesn’t produce electricity. Although there are battery options which can power your home at these conditions, they tend to be quite expensive. Grid power is still being used by most homes that have solar panels.

Are Solar Panels actually worth the cost?

It is possible for the system to pay back its costs in the future, based on the location you reside in. Since you don’t have to pay as much for electricity from your utility it is feasible. It is possible to see a reduction in your monthly bill when net metering is activated.

What is the Cost of a Solar Panel?

The cost of electricity has been steadily declining over the years. The output power of your solar array will determine the total price. Consumer reports show that the price for a solar panels for a typical-sized house within the U.S. ranges between $11,000 and $15,000.8

What is the timeline for recouping the initial cost?

It can take anywhere from 10-20 years for a solar system to pay for itself based upon the dimensions and position of your home.

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