Solar Energy Vs Electricity

Solar Panel Texas

Solar Energy is compared to Electricity

We are all dependent on electricity in the present day and time and. A majority of electrical systems run on electricity both in commercial and residential locations.

Solar energy is a beneficial resource for energy, and has grown in popularity as a result of its ability to reduce costs and also be green.

There are so many investment options available, it can sometimes be difficult to determine what investment will actually assist you in saving a significant amount of money. Cost is an important factor when you are deciding whether to go with solar energy instead of regular electric power.

This article will explain how solar power stacks up against electricity and the motives for increasing acceptance of solar power.

Factors that influence the cost of Regular Electricity

Average residential utility rates are 12-cents/kWh. The average monthly electric bill was $114, before taxes and fees. In a month-long period the average household used around 911 kWh.

Although electricity utility bills vary a lot through the years, they have remained stable throughout. The cost of electricity for residential customers has grown by 4% over the last 10 years. In certain regions like the Northwest where the rate has reached 40%.

The US Energy Information Administration reported that the April 2018 average electricity cost per consumer group was:

  • Commercial - 10.44 Cents for each Kilowatt
  • Residential - 12.89 Cents For Kilowatt
  • Transport -9.53 cents/kWh
  • Industries - 6.58 cents for 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 compared to the 2017. The cost has been increasing by 3.0 percent annually over the past 10 year. Costs for commercial averages increased by 2.5 percent, while transportation costs were up by 2.3%. Industrial average electricity costs were up 0.2 percent. All industries had an average rise in the cost of utilities of 0.8 percent between 2017 and 2018.

The average American household of a residential home used 897 kWh{ per month|| of electricity per month} in 2016, and the average monthly electricity bill was $ 1112.59 before taxes and fees. The electricity costs for residential and commercial customers tend to be higher than the costs for industrial customers.

It is more expensive to distribute and makes use of less voltage. Industrial consumers consume greater amounts of electricity and can consume their electric power at higher voltages without needing to reduce it.

These elements make it possible for commercial customers to be charged a higher rate than the wholesale price of electricity. The cost of regular electricity appears to be lower than the cost for solar energy.

Every day the cost of providing electricity fluctuates. However, customers usually pay prices that are contingent on the price of electricity. The differences in prices are mostly due to fluctuations in electricity demand, the cost of fuel costs and availability of generation sources. Prices tend to be highest in the summer months, when there more demand than supply.

Solar Power The Cost

Solar power systems can be very effective in protecting the consumer from fluctuation and spikes in electricity costs. The average price of solar panels decreased by more than 75 percent between 2006 and 2014. It was around $3.25/kWh, but it was only $.72/kWh. The photovoltaic (PV) solar cell rates have dropped by a factor of 100 in the last 38 years, and by 25 percent over the past 15 years.

The shortage of polysilicon is the primary reason for a slight rise in the price 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.

The cost of solar power is very low after a successful installation. The main costs are the cost of the purchase, cost of the land and the installation cost. The elements that are cost-effective in the residential solar system include solar modules, system design and balance of system (BOS).

It includes inverters as well as connection devices, and a bi-directional billing device. The southwest is where residential solar prices match the electricity costs of residential customers with incentives.

According to the National Renewable Energy Laboratory, the average American homeowner is using a 5 kWh system. It costs on average $2.80 for each DC watt, or $14,000 (2.080 x 5000) before taxes and charges.

Commercial companies use systems that have the record of 100 megawatts or greater, however. The cost for a solar fixed panel system was $1.03 per Watt in 2017.

The price of solar modules has seen a significant decrease. The average price for modules worldwide decreased by 78 percent between 2007 and. It dropped between $3.25 per Watt down to $0.72 per Watt. The significant drop in price of polysilicon which is a important component of pricing of crystalline silicon module, could be one of the reasons that prices have fallen so dramatically.

The polysilicon suppliers made lots of money as they increased capacity, so that there was an overwhelming surplus of polysilicon in the year 2010. The polysilicon price dropped from $400 per kilogram to just $25/kg between 2008 and 2011 which represents an increase of 94%. The drastic drop was caused by:

Solar Panel Houston
Solar Panels Fort Worth
  • The increased efficiency of solar cells can be used to produce sunshine energy.
  • Scale economies
  • Manufacturing technology advancements are dramatic
  • Oversupply of modules is caused by intense competition

The unbeatable efficiency of manufacturing in other industries was achievable due to the{ 23% annual|| annual 23%} solar growth rate over a few decades. There are a lot of competitors seeking large contracts which has caused the prices to fall quickly.

With tax credits that apply across all levels, solar panels are becoming more affordable for property owners. They were allowed to receive 30% of the total price of installing solar panels in their residences as a tax credit in 2016.

This incentive allows you to pay for all the costs of installation and installation equipment within 10 years. The tariff tax on imported solar cell imports will drop by five percent per year. This means the price remains at 15 percent through 2021. This could lead to solar cells becoming more affordable in the future.

The cost of going solar is generally much less. Solar panels are an excellent investment for property owners who plan to sell their home in the near future. Solar panels require minimal maintenance because there aren’t moving parts that can fail. New solar panels feature slimmer profiles and sleek trims that blend well with traditional roofs.

Calculating savings per month using solar power

A solar system placed on a roof facing south with no shade would generate 1,840 kWh annually per nameplate capacity. The first year of production for a 5kW solar array will be (1.840 * 5.5) 9.200 kWh. A system degradation rate of.5 percent per year multiplied by 25 years will yield a net 8,050kWh annually.

This would be equivalent to (0.875 9200) The average cost of electricity for residential homes in CA was $0.125/kWh in 2017. This would result in an savings amounting to (8050x $0.125) $1.006.25, which does not take into account future inflation. So, monthly savings would be $83.6 multiplied by ($1006.25 in 12 month time).

Solar power is a cost-effective option if you’re struggling with the increasing cost of electricity. You can eliminate the need to rely on the local utility company. Solar panels are still able to generate energy even in the cloudy weather Don’t be concerned if they fail to work on sunny days.

Solar power is more efficient than regular electricity, and can be utilized in colder areas to reduce expenses. 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 solar energy into electricity.

This is an excellent news when you consider how much you pay for electricity every month. You may also be eligible to receive a rebate if have excess solar power.

All of the solar electricity generated by your solar power system is free once it is installed and purchased. This could take anywhere between 5 and 10 years depending on where the home is situated. You can save money from the moment your solar energy system starts producing electricity if you’re able to finance it.

Solar is much less expensive in comparison to electricity as you can see from the above points. Businesses are developing systems to provide electricity at a lower cost than regular electricity. Solar panels are easily erected on the roof and taps the energy available. The cost of electricity in the United States continues to increase, despite the fact that solar is cheaper.

Light Bumb

Get in touch with a local solar power installer

Shneyder Solar will provide a customized estimate if you are looking to know the price of a solar installation. We will help you finance the solar power system you want to install. For more information about solar energy systems, please call our solar panel business at [number].


Fill out the form and our sales consultant will contact you! Once you’ve had your initial consultation, you’ll begin your solar journey.

First name is required

Last name is required

Last name is required

Email is required

Email is required

Phone is required

Please enter a valid property address

Property address is required

Schedule Your Appointment


Some information is missing or is incorrect, please fix the issues above and resubmit.

  I would like to receive promotional offers by calls, text messages, and emails.  

Thank you for your request

Your appointment has been added to our calendar.
The consultation will be online or over the phone. Please prepare a copy of your electric bill or energy usage history for your consultant to give you the most accurate proposal.

Your appointment scheduled on


Your confirmation ID


Skip to content