{Benefits of Solar|The benefits of solar|Benefits of solar} {power in|power for|energy in} homes
{Benefits of Solar|The benefits of solar|Benefits of solar} {power in|power for|energy in} homes
Solar power systems {are a great|are an excellent|can be a fantastic} {option for homeowners who want|alternative for homeowners looking|option for homeowners who wish} to {lower their electric bills|reduce their electricity bills|cut down on their electric bill} and {reduce|decrease|lower} carbon footprints. {This can also lead to|It can also result in|They can also contribute to} {higher home values|greater home value|increased home value}. {These benefits come with substantial|The benefits are accompanied by substantial|These advantages come with significant} {maintenance and installation costs|cost of maintenance and installation|costs for maintenance and installation}. The {magnitude of the gains|amount of gains|size of the benefits} {may vary from one house|will differ from one home|can differ from one house} {to the next|from one to another|in the same area to the following}.
This article {will assist|can assist|will help} homeowners {in making|with} the {financial calculations necessary|necessary financial calculations|financial calculations needed} to determine {whether solar energy|if solar power|if solar energy} {is feasible for their home|is feasible for their house|is feasible for their home}.
Understanding Solar Power System
It is {easy to determine|simple to figure out|straightforward to decide} {whether you install solar panels|whether solar panels are installed|the solar panel installation you want to do} and {it make financial sense|if it is financially feasible|whether it’s financially beneficial} {for your home|to your house|in your residence}. Calculate:
- Cost of {a|the} solar power plant
- It will {produce a lot|generate a great deal|create a lot} of energy
- {You would|You’d|You’ll} {pay more|be paying more|spend more money} {for the same amount of energy|to get the same energy|than the energy you use}.
- How {long will it take for|do you expect|is the time frame for} your {upfront|initial} {investment in energy savings|expenditure in savings on energy|purchase of energy saving} to {pay|be paid} off?
- {How long will it take|What is the time frame} {for the system to|in order for this system to be able to|before the government can} pay{ off|} its debts {in|over the next|within} five years?
If {it does|so|it is}{, and you have| and you’ve got| and you’re able to pay} the {capital upfront|money upfront|capital in the beginning}{, it’s likely a good| it’s probably a good| then it’s probably a great} idea. {You should carefully consider|It is important to consider|Consider carefully} whether {you will need|you’ll need|you’ll have} to save{ more|| up} or borrow {money|funds} to {pay for the system|finance the purchase|fund the project}.
{However, in practice|In reality,|But, in reality,} things {aren’t always so simple|don’t always go as smoothly|can be a bit more complicated}. {These factors can vary greatly|The factors that affect your solar panel can be very different|These elements can differ greatly}{, which can cause| and cause| that can lead to} the {benefits and costs|advantages and costs|advantages and expenses} {of solar panels for|that solar panel systems bring to|from solar panels on} two {homes|houses} to {be drastically different|be very different|differ dramatically}.
{However, there|There|But, there} are {tools that can help|some tools that can assist|tools to help}. {Shneyder Solar offers|Shneyder Solar has|The Shneyder Solar provides} {a calculator that quickly provides|an online calculator that provides|an estimate calculator that can provide} {you with representative costs|the cost of a representative project|you with a cost estimate} {once you install|when you set up|after you have installed} solar power {plants in each|plants across every|stations in every} {part|region|area} of the U.S. This calculator is {a great|an excellent|a good} {place to start|starting point|option to begin with} {if you’re new to|when you’re just beginning to learn about|in the event that you’re not familiar with} solar {energy or if you|power or|energy or} {want to get an understanding|are looking to gain a better understanding|need to understand the basics} of the {cost|cost-based} model.
We’ll {walk you through|guide you through|go over} {all the important factors|the most important aspects|all the crucial factors} to {consider|take into consideration|think about} when {calculating|making a decision on|formulating} the {cost and savings potential|price and savings potential|potential savings and cost} of solar {energy|power} for your home {in the remainder|in the rest|over the course} {of this article|part of the article|in this post}.
{Solar|The Solar|Renewable} Power Costs for {Homeowners|homeowners}
{Let’s first look|Let’s begin by looking|We’ll first take a look} at the {upfront cost|initial cost|upfront costs} of installing solar {panel systems|panels} {for your home|to your house|at your residence}. A {residential solar panel system|solar panel for residential use|solar panel system for homes} {costs between $3,500 to|is priced between $3,500 and|will cost you between $3500 and} $16,000 {upfront|in the beginning|at the start}.
The {wide range of costs|variety of prices|wide variety of costs} is {why?|the reason for this.|the reason?} The {main reason is that|reason for this is that|primary reason is} the {cost of a system|price of a system|cost of a solar system} will {vary depending|differ based|vary based} on {its size and what|its size and the|the size of the system and also what} {type of panels it uses|kind of panels it is using|type of panel it has}. {No matter what|Whatever|Whichever} {system you choose, installing|method you select, installing|device you decide to install,} solar panels {is expensive|can be costly|can be expensive}. The {main expense of owning|primary cost of having|major expense associated with owning} {a system is the upfront|an array is the initial|one is the initial} {cost of purchasing|expense of buying} the equipment. The {largest component of overall|biggest component of the overall|major component of total} {cost|expense|price} {will be|is} {the solar module|that of the solar panel|your solar system}.
There {may be additional charges|could be additional costs|might be additional charges}. {An inverter to convert|Inverters convert the|Inverter that converts} {current source from|power source from|electricity generated by} the panel {into alternating electricity|to alternating electric power|into alternating power} {utilized by home appliances|used by appliances in the home|that is used by household appliances}{, process used to determine| and process to calculate| the process that determines} (if {necessary to measure|needed to determine|required to gauge} {how much generating power was|the amount of power that was|the power generated} {created|produced}){, different housing components| various housing components| the various components of the housing}{, cables, or wiring| such as cables, wiring, or| wires, cables or} {gear are all|equipment are} {required for installation|needed for installation|required to install}. Many homeowners are {also considering|considering|also thinking about} {battery storage|the possibility of storing batteries}. {Batteries have historically been too|Battery storage has historically been|They have been historically} {expensive and unneeded if|expensive and unnecessary if the|costly and not needed if} {excess solar electricity generation|solar power generation|excess solar power} is {paid for|covered|provided} by {the utility|utilities}. It is also {important|crucial|essential} to {consider the labor cost|think about the cost of labor|take into account the cost of labor} {of installing batteries|for installing batteries|when installing batteries}.
There are {additional costs involved|other costs|additional expenses} {in operating and maintaining|with maintaining and operating|running and maintaining} {a PV array|an array of PV|the PV array}. {Inverters and batteries,|Batteries and inverters,|The inverter and the batteries} {if any|if they exist|in the event of any}{, need to| are required to| should} be replaced {after several years|every few years|after a period of time}.
Subsidies
{While the aforementioned|Although the above|The above mentioned} {costs are fairly straightforward–a|cost are relatively straightforward, and a|expenses are quite straightforward and a} solar {installation solar firm can|solar company can|installation company may} {often offer a price|typically provide a cost|usually provide a cost} for {these for a householder|the householder|a homeowner}{, government and/or local| local or government| however, local and/or government} electric assistance {can be|may be|is} more {difficult|complicated|challenging}. {Although solar installation incentives fluctuate|While solar incentives for installation vary|Although incentives for solar installations change} {often|frequently}{,| and are not always clear,| however,} {the|they are not a problem for the|it is the} US government has {previously authorized|already approved|approved} {solar tax credits of up|tax credits for solar systems of up|solar tax credits that can amount} {to 30% of the|30 percent of|at 30% off the} {cost|total cost|price} {of the system|for the installation|to install the solar system}.
The Database of State Incentives for Renewables & Efficiency website {has|provides|contains} {more information about|more details about|additional information on} incentive programs {in|across} the U.S., including programs {within individual|in individual|within} states. Similar information {can be found|is available} on {websites|the websites} of solar advocacy {or government|and government|or the government} in other {countries|nations}. {Check with|Contact|Visit} your local utility {company|provider} to {find out|determine} {if they offer|whether they provide|whether they offer} {financial incentives for solar installations|incentives to solar installations|incentives to solar installation} and {what their policy is|what their policies are|also what their policy is} {regarding grid interconnection|on grid interconnection,|about grid interconnection} {or selling excess power|and selling surplus power|as well as selling power surplus} {into|to} {it|grid interconnection|the grid}.
Calculating Your Energy Production
{In your calculations|When you calculate your system}{, the second factor| the other factor that needs| another factor} to {be considered|consider|take into consideration} is {how much|the amount of} {energy your system will produce|energy your system can generate|power your system produces}. {Even for experts|Even for the most experienced|For even the most knowledgeable}{, this| it| the process} {can be a complicated|is a complex|could be a difficult} calculation. Let’s {go over the basics|review the fundamentals|look at the fundamentals}.
The {solar radiation levels in|levels of solar radiation in|solar radiation levels inside} your {home are an important|house are an important|home are a crucial} {consideration|aspect to consider|factor to take into}. {This is simply|It is all about|This simply means} {how much sunlight you have|the amount of sunlight you get|how much sunlight you receive}. {While it is better|Although it is more beneficial|While it is recommended} to {use solar panels closer|install solar panels closer|have solar panels close} to the {equator, there are other|Equator, there are additional|east-west axis, there are other} {factors to consider|aspects to take into consideration|things to think about}. {The|There is the|It is worth mentioning the} National Renewable Energy Laboratory (NREL){, which produces maps| creates maps| is a map-maker} {of|across|that cover} {the|all of the|areas in the} U.S. that show solar radiation levels{, and its website provides| and their website offers| and also its website, provides} {detailed information about|details on|precise information on} specific {locations in|areas in|locations within} the U.S.
{Your home’s orientation is equally|The orientation of your home is also|The direction of your home’s roof is equally} {important|crucial}. A {south-facing roof with no|roof facing south with no|roof that is south-facing and free of} {trees or other obstructions|obstructions from trees or other structures|obstructions like trees or obstructions} {to sunlight maximizes|to sunlight will maximize|in sunlight can maximize the amount of} {solar energy|the solar energy|the energy of sunlight}. {Panels can also be mounted|The panels can also be erected|Panels can be mounted} on {supports outside the house|support structures outside of the house|supports outside the home} and {placed|positioned|then tucked} {away from the house|far from the home}. {This will incur additional costs|This can incur additional charges|The installation will cost extra} for {hardware and cables|the cables and hardware|cables and equipment}.
The size of {your system|your solar panel|the system} is also {important|crucial|vital}. The theoretical {electrical output potential|electrical output|power output} of {a solar panel is expressed|the solar panel is measured|solar panels is calculated} in {watts|Watts|the watts}. {The typical output of|It is believed that the typical power output for|A typical capacity of}{ installed|} {PV systems, also|solar PV panels, which is also|PV arrays, commonly} {known|referred to} {as the capacity factor|by the term capacity factor|as the capacity ratio}{,|} is between 15{%| percent} {and|to} 30%.6 A {household|family|home} {with a 3 kWh household|with a 3 kWh house|that has a 3 kWh home} system {operating|running|that operates} at a {15% capacity|capacity of 15%|capacity factor of 15%} factor {would produce approximately|will produce around|could produce about} 3 kWh{ x 15 x| x 15 times|, which is 15 times} {24 hours/day = 3,942kWh/year|all day, which is 3,942 kWh per year|24/7 = 3,942kWh/year}. {This is roughly one-third the|This is about one-third of the|It is approximately one-third of} {average electricity consumption|typical electricity consumption|average consumption of electricity} {in|across|of} the U.S.
How much {will you save|money can you save|can you save}?
{You can predict|You can estimate|It is possible to estimate} the amount of {energy savings per|savings in energy per|savings on energy each} year by knowing {upfront|in advance|ahead of time} {how much|the amount|the price} {a solar power plant|solar power plants|the solar power plant} will cost {and how much|and the amount of|as well as the amount of} energy it {will produce|can produce|will generate}.
{This is a tough estimate|It isn’t an easy task|This is a difficult figure} {because everything depends|since everything is contingent|since everything is dependent} on {how much|the amount|the price} you {pay for|are charged for|spend on} electricity. Residential {users are charged|customers are charged|users pay} {a set cost for energy|an amount for energy that is fixed|an annual fee for energy} regardless of {when|the time|how often} it is {utilized|used}. {Solar energy systems are|The solar energy system is|Systems that harness solar power are} {utilized|used|employed} to {offset the electricity price|reduce the cost of electricity|offset the electric cost} that homeowners pay{, rather than| instead of|, instead of} compensating for the {heavy price|high cost|cost} of {peak electricity production|electricity produced at peak times|electricity generated at peak hours}. This is{ more|} {in line with|than|comparable to} the{ average|| typical} {cost|price} of {power|electricity} {generation|production}.
{Many|A lot of|Numerous} U.S. utility companies have {implemented pricing systems|established pricing structures|implemented pricing mechanisms} {that allow|that permit|which allow} homeowners to pay {different rates throughout|various rates throughout|different rates during} the day{ to reflect|, to reflect| in order to cover} the {cost of electricity production|price of electricity|costs of electricity production}. This is {why|the reason why} there are higher {rates for|rates in|prices for} the afternoon{ and|, and|, but} lower rates {for the|at|during the} night. {An area with this type|A region with this kind|A location with this kind} of variable rate {may|might|could} {find it beneficial to install|consider installing|be able to benefit from installing} {a PV solar array|an array of solar panels that are PV|a solar PV array}. Solar {power would|energy could|power could} {offset the most expensive|help offset the most costly|be able to offset the most expensive} {electricity|electric power}.
{This will depend on|It will be contingent on|It’s contingent upon} {how much rate changes occur|the amount of rate changes that occur|the frequency of rate changes} {under the plan and|in the scheme and|within the plan, as well as} the {timing of them|timeframe of these changes|timing they occur}. Similar pricing {schemes are used|strategies are employed|plans are utilized} by utilities in {certain|specific|particular} {locations|areas|regions}. {These rates can vary according|The rates may vary according|They can be subject} to {seasonal demand fluctuations|the seasonal fluctuations in demand|seasonal variations in demand}. Solar {power is more expensive if|power is more expensive when|energy is more expensive if} it {has higher summer rates|is able to offer higher rates during summer|has higher rates in summer}.
{Tiered pricing plans are|The Tiered Pricing Plans are|These plans can be} {used|employed|utilized} {by some utilities|in some utility companies|for certain utilities in order} to {adjust|alter|modify} the {marginal price|price|cost} of electricity {as consumption increases|when consumption rises|as the consumption grows}. This {plan allows the benefits|allows the advantages|strategy allows the benefits} of {a solar system|solar systems} to {depend on how much|be based on the amount of|depend on the amount of} {electricity is used|the electricity used|energy is consumed}. In {certain areas, rates|some areas, prices|certain regions, prices} {rise dramatically as consumers|increase dramatically as people|are soaring as consumers} consume more. {Large homes with large|Homes with huge|Large houses with high} energy {requirements may be most|demands may be the most|consumption may be} {in need of|required of|likely to require} solar {arrays that offset marginal|panels that can offset|panels to offset} {high-cost consumption|costs of consumption|cost consumption}.
It {may be|is|could be} possible for {some|certain} {homes to sell solar power|homeowners to sell solar power|homeowners to sell solar energy} back {into the grid|to the grid in order|to the grid} {to save|to help save|in order to save} {money|the grid|cash}. This is {called net metering|known as net metering|known as net-metering} {in|within|across} the United States. {Residential consumers|Residential customers|Consumers in the residential sector} {use the electricity they generate|make use of the electricity they produce|utilize the power they generate} {from the solar array|through solar panels|by solar panels} to offset {power consumption|the power consumed|their power usage} elsewhere. {The monthly electric bill is|Monthly electric bills are|Electric bills for the month are} {a measure|a measurement|an indicator} of {net energy consumption|the amount of energy consumed|their energy consumption}. There are {different|various} {policies and regulations regarding|rules and regulations pertaining to|guidelines and policies regarding} net metering{ that apply| that are applicable|, which are specific} to {each|every} region. For more {information|details}{, homeowners can| homeowners are able to| homeowners should} {consult|look up|go to} the DSIRE database. {They should also contact|It is also recommended to contact|They can also call} {their local utilities|the local utility}.
Calculating Solar Power Costs
{You will now be able|Now you’ll be able|It is now possible} to {do a final calculation|make a final calculation|calculate the final value} and {make an assessment of|assess|evaluate} {solar power’s value for|the value of solar power for|the solar power’s worth to} you.
{You can use|It is possible to use|You can utilize} {the discounted cash flow|discount cash flow|Discounted Cash Flow} (DCF){, to evaluate| to assess| to determine} the {overall cost and benefits|total cost and advantages|overall costs and benefits} of {a solar system|solar systems|a solar installation}. The {outflows at the start|first outflows|initial outflows} of the project {would be|will be|would comprise} the {upfront installation costs|initial installation costs,|initial installation cost,} {net of|without|not including} subsidies. {Inflows would come|The inflows will come|Inflows would follow} later{ in the form of|, in the form of| in the form} offset {electricity costs|electric costs|cost of electricity} (both {direct and via|directly and through|in the form of direct and} net {metering|meters}).
Instead of {using|making use of|employing} DCF{, solar power’s viability| the viability of solar power| Solar power’s viability} is {often assessed|usually assessed|often determined} by calculating its{ levelized|} {cost of electricity|price of electric power|costs of power} (LCOE) and {comparing that|then comparing it|comparing it} {to the electricity cost|with the cost of electricity|to the electricity price} {charged by the local utility|that is charged by local utilities|paid by the local utility}. {The cost/kilowatt hour|Cost per Kilowatt Hour|The cost per kilowatt hour} (or C//kWh) {will be|is} {used to calculate the|calculated to determine the cost of|utilized to estimate the} LCOE {for|of|calculation for} {household solar|solar power for homes|solar panels for the home}. {This is the same|It is the same|This is the exact} {format|structure|form} {as electricity bills|that electricity bill bills use|for electricity invoices}. The following equation {can|could} {be used to approximate|serve as an approximate of|use to calculate} the LCOE:
LCOE ($/kWh){,|} {=|is the|equals} Net Present Value (NPV) of {Lifetime|the Lifetime} {Cost of Ownership|cost of ownership|Cost of Owning} ($)/Lifetime {Energy Output|energy output|Production of Energy} ($kWh).
{A PV solar module’s|The} {useful life is typically 25-40|lifespan is usually 25-40|useful life span is typically 25 to 40} years.7 {To calculate|To determine|In order to calculate} the NPV, {it|you|the module} {must also include maintenance costs|must also take into account maintenance costs|should also be included in the maintenance cost}. The LCOE {can be compared with|is a measure of|can be measured against} the {price of electricity from|cost of electricity supplied by|price of electricity provided by} {a|the|an} utility. {Remember, the relevant price|Be aware that the price of electricity|Keep in mind that the most relevant price} is {the one that occurs|the one that happens|that which occurs} {during peak PV solar production|in the peak solar production|when solar power production is at its highest}.
Is Solar Power Worth It?
{After you have completed|Once you’ve completed|When you’ve finished} {all these calculations|the calculations above|all of these calculations}{, you will likely| after which you’ll likely| and calculations, you’ll} {be left with one number|have one figure|end up with one number}{: the number of years| that is the length of time| which is the time} it {takes|will take} for {a solar system|solar panels|solar systems} to pay {off|for|back} {your energy bills|your energy costs|the energy bills}. {You might be able|It is possible|You may be able} to {see|identify|find} {a system that can|an array of systems that|the system} {reach this point|achieve this goal|get to this point} {in|within} {five or more|5 or 6|the span of five to ten} years{ if|, if} you {live in a sunny|reside in a sunny|live in a sun-drenched} {area of the country with|region of the country that has|part of the country, with} {high|large|significant} {utility bills|energy bills|costs for utilities}. {Others may need|Some may have|Some people may have} to wait {10 to 20|between 10 and 20|for 10-20} years before {they reach|reaching} {this point|the point|this level}.
The {bottom line|reality|fact} is that{ most| the majority of|} homeowners will {see the benefits|be able to see the benefits|realize the advantages} of {a solar power system|solar power systems|a solar energy system} {eventually|in the future|at some point}. It {might take years|could take a long time|may take several years} {to realize this benefit|to see the benefits|before they realize the benefit}. {It often comes down to|It is often a matter of|It’s usually a matter of} {whether it is worthwhile|the necessity|whether it’s worth it} to {install such a system|set up a system like this|invest in a system of this kind}. {These factors include|This is determined by|The factors to consider are} {how long you plan to|the length of time you intend to|the length of time you’ll} {stay at your|remain at|be at} {home, what subsidies are|home, the amount of subsidies|residence, the types of subsidies} {available, and whether|available, and if|offered, and whether or not} {you care about the environment|you are concerned about the environment|you’re concerned about the environment}.
The {pros and cons|advantages and disadvantages|benefits and drawbacks} {of solar panels for your home|to solar panel systems for homes|in solar power panels to your house}
{Solar power, like|Like|Solar power, as with} {all things|everything else|every other thing}{, has its advantages| is not without its benefits| has its pros} and {disadvantages|drawbacks}. {However, you may find|But, you might find|It is possible} {that some of the|certain|it possible that some}{ economic| financial|} {costs can be offset by|costs could be offset by|cost can be offset with} the environmental benefits {and lower|and a lower|as well as a smaller} carbon footprint. This {may be more important|could be more significant|is more crucial} than {a purely financial evaluation|a solely financial analysis|an evaluation purely based on financials}.
Solar Energy Pros
- You can {reduce|lower|cut down on} {your carbon footprint with|the carbon footprint of your home by using|your carbon footprint by using} green {energy|energy sources}
- You can {sell excess|sell the excess|also sell the excess} energy {you have produced with|that you’ve produced using|you’ve generated using} net {metering|meters}
- Certain {federal tax credit breaks|tax credits from the federal government|federal tax credit tax breaks} {may|could|might} be {available to|accessible to|for} you
Solar Energy Cons
- {Maintenance and installation costs are|Installation and maintenance costs are|The cost of maintenance and installation is} {still very high|extremely high|still extremely expensive}.
- Solar {works only|only works|is only effective} when there is {sunlight|sunshine|sun}
- Every {few years, parts|couple of years, components|few years, the components} of the system {must|have to|need to} be replaced
- {Some tax breaks might|Certain tax breaks may|Some tax breaks could} {have expired or are about|be overdue or about|have been canceled or are set} {to expire|to expire.}
Can a {house run on|home be run by|house be powered by} solar power {alone|on its own|by itself}?
{It is rarely possible|It’s not often possible|It’s rare to find it}. Solar {only works|power only operates|is only effective} {when there is sunlight|only when there is sunshine|when there is light}. {If it is|If it’s|When it’s} {dark or cloudy, solar|cloudy or dark, solar|cloudy or dark, it} {does not produce electricity|doesn’t produce electricity|is not able to produce electricity}. {Although there are battery options|While there are battery options|Although there are batteries} {that can provide power at|that provide power during|which can power your home at} these {times, they tend to|times, they can|conditions, they tend to} be{ very| quite|} expensive. {The grid is still used|Grid power is still utilized|Grid power is still being used} by {most homes that have|the majority of homes with|the majority of homes that have} solar panels.
Are Solar Panels {Really Worth It|really worth it|actually worth the cost}?
It is possible {for the system to|that the system will} {pay back its costs|repay its expenses|be able to pay its bills} {over time, depending|in the future, based|over time, based} {on where you live|on the location you reside in|upon where you live}. {Because you won’t have|Since you don’t need|Since you don’t have} to pay {as much for|for as much|the same amount for} {electricity from your utility|electric power from your utility company|the electricity you get from your utility}{, this is possible| it is feasible| This is a possibility}. {You could see a reduction|There could be a decrease|It is possible to see a reduction} in your monthly {bills|bill|expenses} {if net metering is enabled|when net metering is activated|If you enable net metering}.
What is the {Cost|cost|price} of {a|an|the} Solar Panel?
The {prices have fallen steadily|cost of electricity has been steadily declining|price has decreased steadily} {over|throughout} the {years|time|decades}. {Your array’s output power|The power output of your array|The output power of your solar array} will determine {the total cost|the total price|your total cost}. {Consumer reports show|Consumer reports indicate|The consumer reports reveal} that the {price|cost} {of a solar panel|for a solar panels|associated with a solar}{ system|} for {an average-sized home|a typical-sized house|a standard-sized house} {in|within|located in} the U.S. ranges between $11,000 {and|to} $15,000.8
What is the {time frame|estimated time|timeline} {to recoup the initial cost|to recover the initial expense|for recouping the initial cost}?
It {can take anywhere from|could take between|can take from} {10 to 20 year|10-20 years|10 to 20 years} {to make a solar system|for a solar system to|to make a solar panel} pay for itself{ depending|, based| based} {on the size|upon the dimensions|of the amount} and {location|position|the location} of your {home|house|residence}.
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