The high cost of electricity is expected to soar in the next 5 years and nearly everyone is looking for a way to lower their costs. Solar power is a great way to do this because you own and operate your own system plus state and federal rebates pay for about half of the investment price.
According to the Environmental Protection Agency, “solar energy systems are the best way to generate power because they do not cause pollution or noise.” In fact, a 6KW solar system can, over 25 years, reduce carbon dioxide by over 350,000 lbs., NOx by 1124 lbs., SO2 by 1124 lbs., and asthma causing particulate by 69 lbs. This is the equivalent of not driving 569,818 miles, or
planting 3 acres of trees.
Solar works when photons from the sun strike the semi conductor material of the solar panel and are absorbed by electrons in the silicon semi conductor. Electrons are “bumped” into a flow producing DC electricity. This DC current is sent to an inverter which changes the current from DC to AC. The AC current is then used to satisfy the home’s electric needs. Should extra energy be produced, it is sent out to the grid to “help out” the community’s energy needs. California uses “Time of Use” rate structures for solar customers, which means that this excess electricity sent out to the grid during the day puts credits in the customer’s account at a higher dollar value than the electricity he buys back at night.
In a recent study, 80% of the American respondents believe that all new homes should include solar. When informed of solar’s higher resale value, 2/3 of the respondents were willing to pay more money for a solar home. What’s more 1/2 of those surveyed said they would pay 10% more for solar energy systems built in.
Conservation is paramount in increasing costumer’s lifestyles and reducing energy needs. Conserving energy is normally 3 to 4 times less expensive than producing new energy. This conservation allows for building a smaller system while saving money at the same time!
The real estate Appraisal Institute published a study that states a home’s resale value increases $20.00 for every $1.00 saved in operating costs. A home that costs less to live in is more desirable, and people are willing to pay more for it.
The one negative to Solar is the initial investment involved. However, the State of California is offering a 10% cash rebate and the federal government is offering a 30% unlimited federal tax credit. Customers are now investing approximately 60 of the overall price of the solar system.
With these high credits, customers are realizing well over a 25% Internal Rate of Return on their investment.
With these high credits, customers are realizing well over a 25% Internal Rate of Return on their investment.
Through the combination of energy and the very attractive state and federal rebates, customers are finding solar to be one of the most cost-effective investments they can make.
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