The Cost of Solar
When determining the cost of a solar energy system, you should consider the initial cost of the system, the increase in value of your property due to the solar energy system, the return on your investment from energy savings, and the environmental benefits.
Property Value Increase
According to the Appraisal Journal, the value of a house increases by $20 for every $1 of yearly energy savings. Also a new study by the NC Clean Energy Technology Center has found that the average value added to a house by installing a solar energy system is more than $4/Watt. For a typical house in Texas with a 10 kW system, the value added to a house is $30,000 to $40,000.
Return on Investment
When you install a solar energy system, you benefit the environment, and you also save money on your electric bill every month. The warranty period for our solar panels is 25 years and the solar panels will continue to operate beyond the warranty period. Electric rates have been rising at a rate of over 3% per year and will more than likely continue to increase in the future. For a typical house in Texas, a rigorous financial analysis shows, that even without a financial incentive, an investment in solar will yield a rate of return of 18% and have a payback period of 6 years. In other words, a solar energy system will pay for itself more than 4 times in its lifetime.
Initial Cost of a Solar Energy System
The size of the solar array depends on the available sun in your area and the amount of energy that you need for your home or business. GreenLife Technologies can determine the amount of available sun at your site by evaluating the location, orientation, and shading of the Solar PV array.
The size of the system also depends on your electricity needs. The electricity needs can be determined by evaluating past electricity bills. If you have a new house, GreenLife Technologies can determine your probable needs by analysis and experience from other projects.
The cost of a solar energy system is typically around $3/Watt, but on larger systems of 10kW and more, the price is lower.
Example Savings and Property Value Increase for a Solar Electric System:
|Average monthly utility bill||$153 per month|
|Estimated system size required||10 kW|
|System cost after tax credits||$18,130|
|Estimated first year utility bill savings||$1,854|
|Estimated increase in property value||$37,080|
|Return on investment||18%|
|Cashflow payback period||5.9 years|
"Solar PV customers that invest in a 5 kW solar PV system save an average of between $44 to $187 per month during the first year that they own their system."
- Going Solar in America