Benefits of Solar
Generating some, if not, all of your power from Solar Energy is a brilliant idea.
A Solar installation is rated by the kilowatt – in our example, the system is 6.7kW (24 panels of 280 watts each). But the electricity we buy from our utility is priced in kilowatt-hours (kWh), so we need to calculate how much electricity our 6.7 kW system will generate. Our 6.7 kW system will produce about 9,400 kWh of electricity over the course of a year.
Let’s also assume our electricity costs are $0.11 per kWh for electricity, therefore the 9,400 kWh your solar panels produce is worth a little over $1,000 a year. The investment return of solar energy (current return or yield) is 6.7% ($1,000/$15,000). Also, consider the value of the energy produced by your system will rise over time as electricity rates increase.
Benefits of Solar
Going Solar in Texas these days is a wise decision. Check out the boxes below to learn why.
Increase YOUR Energy Independence
Power that’s Abundant, Clean and Everlasting
Lower Electric Bills Today
Protection Against Higher Bills in the Years Ahead
Backup Power in an Outage
Increase the Resale Value of your Home
Protect the Environment
Solar Energy Economics
Everybody should know by now that solar panels convert sunlight into electricity, though most people don’t have a clue about the photovoltaic (PV) effect… and that’s not really important anyway. All that really matters to most people is that it works, it’s reliable, it’s cost effective and for many, in their own way, they are contributing to a cleaner and more sustainable planet.
Though prices had been decreasing steadily for years, in 2009 solar panel prices really started to drop due to increased manufacturing capacity and a dramatic decrease in the cost of crystalline silicon – the primary bulk material in a solar cell. Since then, solar energy economics and the return on investment (ROI) have increased substantially. Today panel prices comprise roughly 25 – 35% of installation costs, down from roughly 60-70% three years ago – meaning Texas residents and businesses can expect their solar installation to generate power at a cost that competes with even the lower rates we’re experiencing today.
One aspect of solar energy economics that doesn’t occur to most folks, is the high level of security and safety of the return. If one measure of security is the guarantee of long-term cash flow – what could be more secure than a return based on the rising of the sun? And while there is no guarantee what your utility will be charging for electricity in 5, 10, 20 and more years from now, it’s going to be higher, meaning the savings from energy supplied by the free fuel from the sun, will be substantially greater.
An ‘under-appreciated’ aspect of a solar installation, is the appreciation that occurs to the property due to the decreased operating costs. Recent publications of the Appraisal Journal state that a home’s value can increase by $20,000 for every $1,000 reduction in annual operating costs due to efficiency improvements.