Solar Energy vs Electricity
Solar Energy vs Electricity
The majority of people are dependent of electricity in this day and age. Most electrical systems are powered by electricity both in commercial and residential locations.
Solar energy is a favorable energy source that has increased in popularity due to of its ability to lower costs and be environmentally friendly.
There are so many investment options available, it can sometimes be difficult to decide if something will really assist you in saving a significant amount of money. Cost is a key factor in deciding whether you should use solar energy as well as regular power.
This article describes how solar power stacks up against electricity and the reasons to increase the acceptance of solar power.
Factors that Influence the Price of Regular Electricity
Average residential utility rates are 12 cents per Kilowatt-hour. The monthly average electricity bill was $114 before taxes and fees. In a typical month the average household used approximately 911 kWh.
Although the cost of electricity utilities fluctuate quite a bit over the years, they have been stable throughout. The cost of electricity for residential customers has increased by 4% over the last 10 years. In some regions, such as the Northwest where the rate has increased to 40 percent.
The US Energy Information Administration reported that the April 2018 average price of electricity per consumer was:
- Commercial - 10.44 Cents for each Kilowatt
- Residential - 12.89 Cents For Kilowatt
- Transport -9.53 Cents for each kWh
- Industrial 6.58 cents for kWh
- The entire sector - 10.23 Cents Per Kilowatt
The{ average household’s 2018|| average household’s} cost of living has increased by 5.5% compared to 2017. The cost has grown by 3.0 percent annually over the last 10 years. Costs for commercial averages have increased by 2.5%, while transportation costs were up by 2.3%. The average cost of electricity for industrial use rose by 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 consumed 897 kWh{ per month|| of electricity per month} in 2016, and the average monthly bill for electricity was 1112.59 before taxes and fees. The electric bills for commercial and residential customers are typically more expensive than those of industrial customers.
It costs more electricity to distribute and uses lower voltages. Industrial consumers consume more electricity and can take their electricity at higher voltages without needing to reduce it.
These factors make it possible for industrial customers to pay a higher rate than the wholesale price of electricity. The price of regular electricity is believed to be lower than that of solar energy.
Every minute the price of providing electricity is subject to change. However, customers usually pay rates that are dependent on the electricity price. The price variations are generally due to variations in electricity demand, the cost of fuel costs, and the availability of generation sources. The prices are typically highest during the summer months, when there is more demand than supply.
Solar Power: The Cost
Solar energy systems can be extremely effective in protecting your from price fluctuations and increases in electricity prices. The cost of solar panels fell by over 75 percent between 2006 and 2014. It was around $3.25/kWh however, it was just $.72/kWh. Photovoltaic (PV) solar cell rates have fallen by 100 times in the last 38 years, and by a factor of 25 over the past 15 years.
A shortage of polysilicon is the main reason for the slight increase in prices between 2005 and 2008. The cost of a solar cell was $.30 per Watt in 2015 and a solar module was $.72 per Watt in 2015.
Costs for solar electricity are very low after successful installation. The main costs are the purchase price, the cost of the land, and installation costs. The cost elements of a residential solar system are solar modules, system design and the balance of system (BOS).
It includes inverters, connecting devices, as well as a bi-directional bill device. The southwest is where residential solar prices compete with residential electricity prices after incentives.
As per the National Renewable Energy Laboratory, the typical American homeowner is using a 5 kWh system. The cost is on average $2.80 per DC watt, or $14,000 (2.080 multiplied by 5 000) prior to taxes and costs.
Commercial companies use systems that have an impressive 100 megawatts or more, but. The average cost for a solar fixed panel system was $1.03 per Watt in 2017.
The price of solar modules has seen a significant decline. The average price for modules worldwide dropped by approximately 78 percent between 2007 and. It dropped from $3.25 for a Watt, to $0.72 for each Watt. The drastic drop in cost of polysilicon, a crucial component in pricing of silicon module, could be the reason that prices have dropped so much.
The companies that produced polysilicon made plenty of money as they increased capacity so that there was an enormous excess of polysilicon by the year 2010. The cost of polysilicon decreased from $400 per kilogram to $25/kg between 2008 and 2011, which is 94% lower than the previous year.. The drastic drop was due to:
- Improved efficiency of solar cells is a way to generate sunshine energy.
- Scale economies
- Manufacturing technology advancements are dramatic
- Module oversupply is caused by intense competition
Manufacturing efficiencies unmatched in other industries was possible due to the{ 23% annual|| annual 23%} solar growth rate over the course of a couple of years. There are a lot of competitors seeking large contracts which has caused prices to drop quickly.
Through tax breaks that apply across all levels, solar panels are becoming more affordable for property owners. They were allowed to claim 30% off the total price to install solar panels into their homes as a tax credit in 2016.
The incentives allow you to cover all the expenses of installation and installation equipment within 10 years. The tariff tax on imported solar cell imports will decrease by five percent per year. This means the price is set to remain 15% in 2021. This could result in solar cells becoming more affordable in the years ahead.
The price of solar is typically less. Solar panels are a smart investment for homeowners who are planning to sell their home in the future. Solar panels require very little maintenance since there aren’t any moving parts that can fail. New solar panels feature slimmer profile and sleek trims that are a perfect match with traditional roofing.
Calculating monthly savings with solar power
A solar system mounted on a south-facing roof with no shading would produce 1,840 kWh annually per nameplate capacity. The initial year of production for a 5kW solar system will yield (1.840 * 5.5) 9200kWh. A degradation rate of.5 percent per year multiplied over 25 years would result in a total of 8,050kWh per year.
This amounts to (0.875 9200) The average residential electricity price for electricity in CA was $0.125/kWh in 2017. This could result in savings of (8050x $0.125) $1.006.25, which does not take into account the possibility of inflation. So, monthly savings would equal $83.6 divided by ($1006.25 over 12 months).
Solar power is an affordable option if you’re struggling with the increasing cost of electricity. It can help you get rid of the dependence on your local utility company. Solar panels are still able to generate electricity even in the dark, so don’t be alarmed when they don’t work on sunny days.
Solar energy has a higher efficiency than normal electricity, and can be used in areas that are colder to reduce expenses. The size and quality of your solar system will determine the amount of electricity you need. The solar power system can turn up to 22% of their solar energy into electricity.
This is a great thing when you consider the amount you spend on electricity each month. It is possible to qualify for a rebate if you have excess solar power.
The solar energy generated by your solar power system is free after it has been installed and purchased. This could take anywhere between 5 and 10 years depending on where your residence is. You could save money from the moment your solar system begins producing power if you are in a position to finance it.
Solar is significantly cheaper in comparison to electricity as you see from the points above. Businesses are developing systems to offer electricity at a much lower cost than regular electricity. Solar panels can be installed on a roof and harnesses the energy available. The price of electricity in the country continues to rise despite the fact solar is cheaper.
Get in touch with an installer of solar power in your area.
Shneyder Solar can provide an estimate that is customized if you are interested in the costs of solar installations. We can help you finance your solar energy system. For more information on solar energy systems, call our solar panel business at [number].
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