The New Economics of Solar(and how you will benefit.)
Perhaps what is most impressive about solar power is the dramatic decrease in cost that has taken place in the last ten years. Until recently, alternative energy was considered a luxury mostly enjoyed by the eco-conscious affluent. For the rest of us, solar was more of a curiosity and because of the substantial up front costs, installation of a solar array was considered impractical.
But before an economic case for photovoltaics (pv) is made, it is worth noting some other advantages of installing solar on your home or business.
A recent study conducted by the National Renewable Energy Laboratory (NREL) found that solar powered homes sold 17% faster and 20% higher than non-solar homes.
Solar qualifies for numerous incentives-federal tax credits and grants, accelerated depreciation (for businesses), special property tax assessment for Illinois residents.
Energy security. Reduced exposure to electric pricing fluctuations -your rate is locked in for 25+ years.
Money saved is after-tax dollars.
Solar modules have a 25 year power warranty.
Excellent reliability due to little or no moving parts in the system.
Attractive rate of return on your investment.
Consider the Options
According to the U.S. Energy Information Administration (EIA), the average American home uses 897 kW hours (kWh) of electricity per month and pays 12.9¢ per kWh.
A 7kW solar array is capable of producing 230,000 kWh over a 25 year period. (Most solar modules have a 25 year power warranty.)
Assuming no electric rate increases for 25 years, the solar system would generate $29,670 worth of electricity..
However, the U.S. residential electricity rate has risen 2%/yr. on average for the past 11 years. Taking a 2%/yr. increase in rates into account, the same solar array would generate $34,304.50 worth of electricity during its 25 years of operation.
The chart below is savings in electricity with a roof mounted, south facing, 7kW array
Now, consider the cost of doing nothing.
Given the numbers from the EIA, the average household would spend $44,476
on electricity assuming a 2%/yr. rise in electricity rates. See chart below.
DISCLAIMER: This information is provided as an illustration of potential financial benefits stemming from ownership of a solar electric system. This is not a production guarantee. Blue Stone Solar LLC does not warrant the applicability of these estimates and disclaim all liability.
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