What is the true cost of solar power? The answer to this question may determine whether or not you decide to install solar panels on your home or business. In fact, in the current economy, everyone is worried about investments, and whether they make sense long term.
How does the cost of solar power factor in?
In order to accurately determine solar energy cost, you’ll need to consider a range of factors. Get your pencil out… you should write these down:
- Current utility bills, averaged on a monthly basis
- Projected future utility bills, over your estimated years of ownership of the property
- Amount you may save annually in electricity bills
- State and federal solar energy tax rebates and other incentives, such as no money down
- Type of solar panel system you want to install: PV Panels or Solar roof shingles?
- Other potential energy savings, through energy efficient bulbs, shutting off lights, adjusting thermostats
- Other potential energy retrofitting measures, including windows, insulation, Energy Star appliances, etc.
When you consider the fact that solar power is free, once you install the panels, it may be worth it to consider converting now. Case in point:
Let’s say that your solar panel system will cost you $10,000 (after a retail cost of $18,000 and with tax rebates, etc.). Now, consider that your monthly utility bills average $200 a month, which is $2,400 a year. That alone would be about a 4-year return on investment, but wait! What about the increase in value of your home? If you can save the entire $2400 a year, multiply that figure by 20. That’s right: $48,000 in additional property value!
Now, add in the rising electricity rates that you won’t have to worry about. Oh, and the cost of continued global warming – you are doing your part you know… priceless!
You see, it just takes some focused arithmetic to determine the true cost of solar power. Think beyond your initial investment/outlay, and I’ll bet you will soon see that solar energy is the way to go, without requiring you to break the bank.