Solar System Cost

Solar System Costs Are Decreasing

With the rising costs of utility bills, many are turning to the use of solar energy to help save money.  While there is an initial cost with any kind of solar system installation, it is a long-term investment which will benefit your home or business for years to come.  With prices at an all-time low, you’ll find that solar system costs are now more affordable than ever.

How can solar power be utilized?

There are many different applications for a solar power system:

• Residential — In most cases, the solar power system will be connected to the electricity grid, with any excess exported to the grid.  It is also possible to utilize battery storage for nighttime use, eliminating the grid altogether.

• Commercial — There are a wide array of options, whether the business would be best served by a tracking system, ground system, flat roof system, etc.  PV modules can even be placed over skylights or onto balconies and sunshades.

• Industrial — Solar energy can be used to power corrosion protection systems, environmental monitoring equipment, road traffic warning signals, and a variety of other applications.  Solar power is ideal for distant and isolated locations.

• Remote — The use can benefit clinics, schools, community halls, and other such remote buildings.  Developing areas can be supplied with electricity from a central power plant and a system can even be used to pump water into these regions.

What is the cost?

Solar system costs vary, depending on the application and location.  Here are some facts that will help make the decision for consumers:

• Oversupply — For the past couple of years, an oversupply of solar energy, enough to power 2.6 million homes, has been projected.  This oversupply has caused prices to drop between 15%-20%.

• Recession Advantage — Due to the recession, Congress renewed the existing 30% credit toward solar system installations for homeowners, but they also removed the previous $2000 cap.  This translates to thousands of dollars in savings.

• Dropping Prices — To give an example, a 4-kilowatt solar system in California was originally priced at around $30,000.  Only a few years ago, this price was slashed to $21,000 after federal and state incentives.  Now, that same system is estimated to cost only about $10,000 to $12,000.  This is a fraction of its original cost.

• Water Bills — A solar thermal water heating system usually costs under $5000, reducing monthly water heating bills be 50%-100%.

• Small Systems Available — If a consumer simply wants to power a computer and a few other small appliances for use in an RV or while camping, the cost can be less than $1000.  This same cost is also accurate for heating hot tubs and swimming pools.

Solar system costs for businesses include these benefits:

• Federal Tax Credit — There is currently a 30% Federal Tax Credit for businesses that install solar power systems.

• Return on Investment — On average, businesses receive a 3-6 year return on their initial investment.

• Rebate  — Businesses can enjoy a utility rebate of 10%.

• Long Term Investment — After incentives and rebates, a reduced price of $100,000 will save more than $5 million over a period of 30 years.

You can read more on associated costs here http://www.energysavers.gov/your_home/space_heating_cooling/index.cfm/mytopic=12490