Solar panel kits include everything you need to generate and use solar electricity: solar panels, an inverter and charge controllers.
Although PV now costs less than 1% of what it did in the 1970s, the amortized price over the life of the
system is still about 25 cents per kilowatt-hour. This is double to quadruple what most people pay for electricity from their utilities. Buying a PV system is like paying years of electric bills up front. Your monthly electric bills will go down, but the initial expense of PV may be significant. By financing your PV system, you can spread the cost over many years, and rebates can also lighten your financial load.
People decide to buy PV systems for a variety of reasons. Some people want to help preserve the Earth's
finite fossil-fuel resources and reduce air pollution. Others want to invest in an energy-producing improvement to their property. Some people like the security of reducing the amount of electricity they buy from their utility because it makes them less vulnerable to future price increases. And some people just appreciate the independence.
When the property tax assessor comes a knockin’ at your front door, by law, they are not allowed to charge you any more property taxes because you’ve got a new valuable solar system on your roof. At the same time, your home WILL be worth significantly more when you sell, because, hey, what home buyer doesn’t like free electricity?
The New Jersey solar rebate for PV (photovoltaics) is going to change every year. In 2010, it’s at $750/kilowatt. That rebate level is decreasing every year, so if you’re going to do it, might as well do it now before the incentive goes lower. Last year, the incentive was at $1,550/kilowatt!
Example 5kW Residential Solar Installation. Here’s an example of an average 5kW (5000 watt DC) system, which will provide about $89 of electricity per month. As of this writing, you’re going to pay around $6/watt installed cost, unless you go with the active group purchase program where you could instead pay $5/watt! What does that mean for your pocketbook in this example?
Cost Before Incentives: $25,000 (5000watts x $5/watt if done with a group purchase)
State Rebate: subtract $3,750 ($.75/watt * 5000 = $3,750), so now we’re at $21,250
30% Federal tax credit: subtract $6,375 (calculated after State rebate: 30% * $21,250 = $6,375), so now we’re at $14,875.
SREC value: subtract $3,250 for 2010, then roughly $3,000 per year thereafter! Now, we’re at $11,625
Estimated NET cost after 1 year: $11,625
Years to Payback: 4 to 5 years ($3000/year in SRECs for 4 years is already $12,000)
New monthly electric bill (first year): About $13/month!
Environmental benefits: Greenhouse Gas (CO2) Saved: 9,618lbs/year. That’s like keeping someone from driving across the country 75 times over the warrantied life of the solar system
Also equal to planting over 70 trees.
Once you have made the investment to install solar panels, you’ll want to maximize their efficiency and output. If shade, snow or technical issues are reducing the amount of solar electricity generated by the system, you’ll want to know right away.
You can now monitor your residential solar panel system with a smartphone application. Its a home energy monitor right at your fingertips! Developed by a solar photovoltaic (PV) manufacturer, SunPower, the Android application provides instant information for customers regarding: (1) energy output of a residential solar panel system, (2) their home’s energy usage (hourly, weekly or monthly) and (3) the ability to compare and share previous data.
Any SunPower customer can access this same information via the company’s website. But the energy monitor application allows the kind of instantly available information so many of us desire so you can make adjustments to consumption or order repairs to your system, as necessary.
You can go solar without paying a cent. I first mentioned this proposition, known formally as a power-purchase agreement, two years ago: a company such as SunRun or SolarCity installs panels on your roof at its expense and, in exchange, collects the government subsidies.
SunRun won’t even offer you a free array unless your roof faces approximately south and has minimal shading. They run the numbers for your site and see whether they can recoup their costs—it’s all very hardheaded.
The 30% federal tax credit is what suddenly made solar a lot cheaper. Before 2009 the tax credit was limited to $2000. But now there is no limit. So if you install a $40,000 system, you lower your tax bill by $12,000. The credit is 30% of your cost, after any state/local rebates you get. (Case A in the calculator assumes a rebate, so the tax credit in that example is lower.) Note that a taxcredit is more powerful than a tax deduction. A deduction just reduces the amount of your income, on which the tax is based. But a tax credit comes directly off your total taxes.
Here are some sample rebate programs:
Arizona: $2.50 - $3.00 / watt
California: $1.90 - $2.50 / watt
Colorado: $2.00 - $4.50 / watt
Texas (Austin): $4.50 / watt
You might not have to buy a system outright. A number of companies are now renting solar systems to California customers, so you just pay a monthly rate and don't incur huge startup costs. I'll cover rental programs below.
Sources:
ENERGY STAR
nrel.gov/docs
Solar Power
Solar Energy
michaelbluejay
Scientificamerican
Sources:
ENERGY STAR
nrel.gov/docs
Solar Power
Solar Energy
michaelbluejay
Scientificamerican
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