Solar Energy Vs Electricity
Solar Energy is compared to Electricity
The majority of people are dependent on electricity in the present day and age. Most electrical systems are powered by electricity for both residential and commercial locations.
Solar energy is an attractive resource for energy, and has grown in popularity due to of its ability to reduce cost and help the environment.
There are numerous investment options and it is sometimes difficult to know whether something can actually assist you in saving a significant amount of money. Cost is a key factor when deciding whether to use solar energy or regular electricity.
This article explains how solar power stacks against electricity and the motives for the increasing acceptance of solar power.
Factors that Influence the Price of Electricity Regularly
The average residential utility rate is 12-cents/kWh. The monthly average electricity bill was $114 before taxes and other fees. On a monthly basis the average household used around 911 kWh.
Although the cost of electricity utilities vary a lot through the years, they have remained stable all through. The retail residential electricity rate has grown by 4% over the past 10 years. In certain regions like the Northwest, the rate has increased to 40 percent.
The US Energy Information Administration reported that the April 2018 average electric cost per consumer was:
- Commercial Commercial 10.44 Cents for each Kilowatt
- Residential - 12.89 Cents per Kilowatt
- Transportation -9.53 Cents per kWh
- Industrial 6.58 Cents per kWh
- All Sectors - 10.23 Cents Per Kilowatt
The{ average household’s 2018|| average household’s} cost of living has increased by 5.5 percent over 2017. This cost has been increasing by 3.0 percent per year over the past 10 year. The average cost for commercial services increased by 2.5 percent, and transport averages were up by 2.3 percent. The average cost of electricity for industrial use rose by 0.2%. Every sector had an average rise in the cost of utilities of 0.8 percent between 2017 and 2018.
The typical American residential household used 897 kWh{ per month|| of electricity per month} in 2016, and the average monthly bill for electricity was 1112.59 without taxes and charges. The electricity bills for residential and commercial customers are typically more expensive than that of industrial customers.
It costs more electricity to distribute and it uses lower voltages. Industrial consumers consume more electricity and can take their electric power at higher voltages without having to cut it down.
These elements make consumers in industries to purchase a greater cost than the wholesale cost of electricity. The price of regular electricity appears to be less expensive than the cost for solar energy.
Every day the price of providing electricity is subject to change. Customers typically pay rates that are dependent on the price of electricity. The differences in prices are mostly due to fluctuations in electricity demand, fuel costs, and the availability of power sources. Prices are usually highest in summer when there is more demand than supply.
Solar Power The Cost
Solar power systems can be very effective in protecting you from fluctuations and rises in electricity costs. The price for a solar panel dropped by more than 75 percent between 2006 and 2014. It was approximately $3.25/kWh, but it was only $.72/kWh. Photovoltaic (PV) solar cells have decreased by 100 percent in the last 38 years and by a factor of 25 in the last 15 years.
A shortage of polysilicon is the primary reason for a slight rise in prices between 2005 and 2008. The cost of solar cells was $.30 per Watt in 2015, and an solar module cost $.72 per Watt in 2015.
Solar electricity costs are very low after a successful installation. The actual costs include purchase price, the cost of the land and the installation cost. The elements that are cost-effective in a residential solar system are solar modules, design of the system and the balance of system (BOS).
The inverter as well as connection devices and a bi-directional billing device. In the southwest, residential solar costs match the electricity costs of residential customers after incentives.
As per the National Renewable Energy Laboratory, the typical American home owner is using a 5 kWh system. The cost is on average $2.80 to install a DC watt, or $14,000 (2.080 x 5000) before taxes and fees.
Commercial businesses use systems that are an impressive 100 megawatts or more, but. The average cost of a fixed solar panel system was $1.03 per Watt in 2017.
The current solar module price has seen a dramatic drop. The global average module price decreased by 78% between 2007 and 2014. It fell between $3.25 per Watt to $0.72 per Watt. The dramatic drop in the cost of polysilicon, a important component of the overall cost of crystalline silicon module, could be the reason that prices have fallen so much.
The suppliers of polysilicon made a lot of money as they increased capacity, so that there was an enormous surplus of polysilicon in the year 2010. The price of polysilicon dropped from $400/kg to just $25/kg between 2008 and 2011, which is 94% lower than the previous year.. The drastic drop was caused by:
- Increased efficiency in solar cells can be used to create sunlight energy.
- Scale economies
- Manufacturing technology advancements are awe-inspiring
- The oversupply of modules can be attributed to the intense competition
Manufacturing efficiencies unmatched in other industries was possible because of the{ 23% annual|| annual 23%} solar growth rate over a few years. There are a lot of competitors seeking large contracts which is causing the prices to fall quickly.
Through tax breaks that apply to all levels of the system solar panels are getting more affordable for property owners. They were allowed to receive 30% of the price for installing solar panels in their homes through tax credits in 2016.
These incentives make it possible to recover all costs of installation and installation equipment within 10 years. Taxes on tariffs on imported solar cell imports will drop by 5 percent each year. This means the price remains at 15 percent in 2021. This could result in solar cells becoming increasingly affordable in the future.
The price of solar is generally much less. Solar panels are a smart investment for property owners who are planning to sell their home in the near future. Solar panels require little maintenance as there are no moving parts that can fail. Modern solar panels come with slimmer profiles and sleek trims that blend well with traditional roofing.
Calculating savings per month using solar power
A solar array installed on a roof that is south-facing with no shading would produce 1,840 kWh annually per nameplate capacity. The initial year of production for a 5-kW solar system would result in (1.840 x 5.5) 9200kWh. A degradation rate of.5% per year multiplied by 25 years would result in a total of 8,050kWh per year.
This is equivalent to (0.875 x 9200) The average cost of electricity for residential homes in CA was $0.125/kWh in 2017. This could result in an savings amounting to (8050x $0.125) $1.006.25, which does not take into account the possibility of inflation. So, monthly savings would amount to $83.6 divided in ($1006.25 over 12 months).
Solar power is an affordable alternative if you’re struggling to cope with rising electricity prices. You can eliminate the dependence on the local utility company. Solar panels can still produce energy in cloudy conditions Don’t be concerned if they fail to work on sunny days.
Solar energy can be more effective than conventional electricity, and can be used in areas with colder temperatures to save money. The size and quality of your solar system will determine the amount of electricity you need. Solar power systems can convert as much as 22 percent of the solar energy they generate into electricity.
This is a great thing when you think about how much you pay for energy each month. It is possible to qualify to receive a rebate if have excess solar power.
The solar energy generated by the solar power system is free once it is installed and paid for. This can take between 5-10 years depending on where your home is situated. You could save money from the moment the solar power system starts producing electricity if you’re financially able in financing it.
Solar is much less expensive in comparison to electricity as you can see from the points above. Companies are developing systems that offer electricity at a much cheaper cost than regular electricity. Solar can be easily mounted on the roof and taps the energy available. The cost of electricity in the country continues to rise despite the fact solar energy is more affordable.
Contact a local solar power company
Shneyder Solar can provide a customized estimate should you be interested in the cost of a solar system. We can help you finance the solar power system you want to install. For more information on solar energy systems, please call our solar panel business at [numberat [number].
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