Solar Energy is compared to Electricity
Solar Energy is compared to Electricity
We are all dependent of electricity in this day and day and. Most electrical systems are powered by electricity both in commercial and residential environments.
Solar energy is a favorable energy source that has gained in popularity due to of its ability to reduce costs and also be green.
There are so many investment options available and it is sometimes difficult to decide what investment will actually help you save a lot of dollars. Cost is an important factor in deciding whether you should use solar energy or regular electricity.
This article will explain how solar power compares against electricity and the reasons to increase the acceptance of solar power.
Factors that Influence the Price of Electricity Regularly
Average residential utility rates are 12-cents/kWh. The average monthly electric bill was $114, excluding taxes and other fees. On a monthly basis an average household consumes about 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 been increasing by 4% in the last decade. In certain areas, such as the Northwest The rate has increased to 40%.
The US Energy Information Administration reported that the April 2018 average price of electricity per consumer was:
- Commercial Commercial 10.44 Cents for each Kilowatt
- Residential Residential 12.89 Cents per Kilowatt
- Transportation -9.53 cents/kWh
- Industrial - 6.58 cents for kWh
- All Sectors from 10.23 Cents Per Kilowatt
The cost of living has increased by 5.5 percent over 2017. This cost has increased by 3.0% annually over the past 10 year. Commercial average costs increased by 2.5%, while transportation averages were up by 2.3%. Industrial average electricity costs rose by 0.2%. Every sector experienced an average increase in energy costs of 0.8 percent between 2017 and 2018.
The typical American household of a residential home used 897 kWh per month in 2016, and the average monthly bill for electricity was $ 1112.59 after taxes and fees. The electric bills for residential and commercial customers are generally higher than the costs for industrial customers.
It is more expensive to distribute and uses lower voltages. Industrial customers consume greater amounts of electricity and can consume their electricity at higher voltages , without having to lower it.
This makes industrial customers to pay a higher rate than the wholesale price of electricity. The price of regular electricity appears to be less than that of solar energy.
Every day the price of providing electricity is subject to change. Customers typically pay prices that are contingent on the cost of electricity. Prices vary typically due to changes in demand for electricity, fuel costs, and the availability of generation sources. Prices are usually highest in the summer months, when there more demand than supply.
Solar Power The Cost
Solar energy systems are highly effective in securing your from price fluctuations and increases in electricity prices. The cost for a solar panel dropped by more than 75 percent between 2006 and 2014. It was around $3.25/kWh however, it was $.72/kWh. Photovoltaic (PV) solar cell prices have fallen by 100 times in the last 38 years and by a factor of 25 in the last 15 years.
The shortage of polysilicon is the most important reason for a slight increase in the price between 2005 and 2008. The average price of a solar cell was $.30 per Watt in 2015 while a solar module was $.72 per Watt in 2015.
Solar electricity costs are extremely low following a successful installation. The main costs are the cost of the purchase, cost of the land, and the cost of installation. The cost elements of a residential solar system are solar modules, design of the system and the balance of the system (BOS).
It includes inverters as well as connection devices and a bi-directional billing device. The southwest is where residential solar prices compete with residential electricity prices after incentives.
Based on the National Renewable Energy Laboratory, the typical American residential household installs a five kWh system. It costs on average $2.80 for each DC watt or $14,000 (2.080 x 5000) without taxes and other costs.
Commercial corporations use systems with the record of 100 megawatts or more, but. The cost for a solar fixed panel system was $1.03 per Watt in 2017.
The current solar module price has seen a dramatic decline. The global average module price fell by around 78 percent between 2007 and 2014. The price dropped from $3.25 per Watt down to $0.72 for each Watt. The significant drop in cost of polysilicon, a important component of pricing of crystalline silicon module, could be the main reason that prices have fallen so significantly.
The polysilicon suppliers made lots of money as they increased capacity so that there was an enormous excess of polysilicon by the year the year 2010. The cost of polysilicon decreased from $400 per kilogram to $25/kg between 2008 and 2011, which is an increase of 94%. The drastic drop was caused by:
- Improved efficiency of solar cells could be utilized to produce sunlight energy.
- Scale economies
- The technological advancements in manufacturing are dramatic
- Module oversupply is caused by fierce competition
Efficiency in manufacturing that is unmatched in other industries were possible due to the 23% annual solar growth rate over the course of a couple of decades. There are a lot of competitors who are competing for contracts of a large size, which is causing the prices to fall quickly.
Through tax breaks that apply to all levels of the system, solar panels are becoming less expensive for homeowners. They can get 30% off the price to install solar panels in their homes as a tax credit in the year 2016.
The incentives allow you to recover all costs of installation and equipment in 10 years. The tariff tax on imported solar cell imports will decrease by five percent per year. This means that the tax will remain at 15% through 2021. This could result in solar cells becoming even more affordable in the future.
The cost of going solar tends to be less. Solar panels are an excellent investment for property owners who intend to sell their houses in the near future. Solar panels require very little maintenance because there aren’t moving parts which can fail. New solar panels feature slimmer designs and sleek trims, which work well with traditional roofs.
Calculating savings per month using solar power
A solar panel placed on a roof facing south without shading will produce 1,840 kWh annually , according to the nameplate capacity. The initial year of output for a 5kW solar array will yield (1.840 * 5.5) 9.200 kWh. A system degradation rate of.5% per year multiplied by 25 years would 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 translate into an savings amounting to (8050x $0.125) $1.006.25, which does not take into account the future rate of inflation. Thus, the monthly savings would equal $83.6 per month divided in ($1006.25 for 12 months).
Solar power is a low-cost alternative if you’re struggling to cope with the increasing cost of electricity. It can help you get rid of dependence on your local utility company. Solar panels are still able to generate energy even in the cloudy weather, so don’t be alarmed when they don’t perform on sunny days.
Solar energy has a higher efficiency than normal electricity and can be utilized in areas with colder temperatures to reduce costs. The size and quality of your solar panel will determine how much electricity you require. The solar power system can turn as much as 22% of the solar energy they generate into electricity.
This is great news considering the cost of energy each month. You could also qualify to receive a rebate if have excess solar power.
All of the solar electricity produced by the solar power system is free after it has been installed and paid for. This can take between 5-10 years, depending on where your residence is. It is possible to save money when your solar system begins producing power if you are financially able in financing it.
Solar is significantly cheaper than electricity, as you see from the points above. Businesses are developing systems to offer electricity at a much cheaper cost than regular electricity. Solar panels are easily erected on a roof and harnesses an energy source that is already available. The price of electricity in the country is rising despite the fact solar power is less expensive.
Get in touch with an installer of solar power in your area.
Texas Solar Group will provide an estimate tailored to your needs for those who are interested in the costs of a solar system. We can assist you in financing an energy-efficient solar system. For more information about solar energy systems, please call our solar panel business at [numberat [number].
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