Using Solar Energy to Cut Your Electricity Bills

So much is being said of the green revolution and the new energy market that a lot of persons have questions regarding solar power. A lot of people want to set up a solar power system, also known as a photovoltaic (PV) system, on top of their home. However, a lot of them is not aware of the cost of these systems and what they can pay for it. This article will assist you in deciding if a solar system is within your budget. We’ll begin with the questions that you need to ask and get answered.

How Much Power Do I Need?

First, you need to decide on how much energy you will be using. Secondly, check your power bill. You’re to see how much you use monthly and yearly. This information will be useful in finding out how much solar energy you actually need. Also, you should observe how much your us power costs in dollar per kilo-watt-hour ($/kw-hr).   

Are there Tax Credits and Rebates?

The short answer to this question is ‘YES!’ There are a lot of programs throughout the country to support people in installing power systems on the homes. The federal government has at least 30% tax credit for wind and solar systems. Check your local power utility for information on the rebate that they offer. Power utilities in several parts of the country are offering to pay for almost half of the system. Combine this to the federal amount and you could have 80% of your system paid for by others.

What Size System Should I Get?

This is a hard question to answer. Majority of people begin by covering a percentage of the amount of power that they use. Whereas several people begin with about 25% - 50% of their full power. You can use the tools that are available to estimate the solar panels suitability; you can decide on how big a system you will need to produce a little or all of your power with renewable energy.

Efficiency is another important aspect of solar panels. Different modules come with different efficiency ratings. For example, monocrystalline panels are the most efficient and they occupy the least space while polycrystalline and thin-film panels are less efficiency, they occupy more space but they are much cheaper than monocrystalline ones. Here you find a detailed explanation about panel types and efficiency ratings.

If you presume that installed system will cost around $10/watt, you can approximate a rough budget for the project. For instance, if you begin with a 1,000 watt system (this is a great place for homeowners to begin) it would cost around $10 by 1000 = $10,000 for materials and labour. Don’t forget that there are a lot of incentives available. Thus, if you had a rebate of a $2/watt from the utility and accept the 30% from the federal tax credit, the cost of your system would be $10,000 – 1000watts x $2 per watt) - $10,000 x .30) = $5,000. Therefore you could get a bigger solar power system or you can use the money you saved on something else!