Did you know that the cost to go solar has dropped more than 70% since 2010?
Solar System Cost
Solar used to be extremely expensive and impractical for homeowners and businesses to invest in. In recent years, the United States and many other countries have put in a tremendous amount of money and effort to grow the clean energy industry. Due to this effort, the solar installation rate has increased dramatically all across the world.
Before going solar, most people research how much it will cost them, and it is hard to get an exact amount. It’s a tedious research process and most of the terms are confusing without prior knowledge. The intention of this article is to work out some the confusion about the cost and terms involved.
What is the Average Cost?
Electricity is measured in Watts
1000 watts/hour = 1 kilowatt-hour (kWh)
Home Without Solar:
- The average cost of one kWh is 12 cents.
- The average amount of kilowatt hours used by homeowners each month is 911 kWh.
- With the two multiplied together, the average homeowner’s electricity bill is $110/month.
Home With Solar:
- The most common solar panel system size is the 5 kW system (5000 watts). System size depends on the size of the roof and the amount of solar electricity the homeowner wants.
- The average cost per Solar Watt = $3.14
- YSG Solar can be as low as $2.70 (depending on the home and the system)
- The average cost of the system is 5000 * 3.14 = $15,700
- All energy generated from the panels will replace the electricity you would have paid for on the monthly bill from the utility company.
This may sound like a scary amount, but there is more to that amount explained below.
Federal Solar Income Tax Credit
- This federal policy is the most important policy supporting growth of solar energy. This policy provides a 30% tax credit for residential and commercial systems. On average, this would give you a return of $4,710 from the 15,700. This policy has pushed installation rates through the roof and will continue until 2021.
State Incentives and Rebates
- Each state has its own incentives and rebates that it initiates in order to motivate and make solar more affordable. Learn about your state incentive programs here!
We hope that once you read this article, you are a little less dubious of the expenses of a solar panel system. It may be a large upfront investment but will save you money in the end. Many installers, like YSG Solar, work hard to make it easy for all income families to be a part of the solar industry, and the investment is balanced out by the money you save on your electric bill. Going solar will provide you with a large economic benefit, and the community with a large environmental benefit.
For More Information on How You Can Help the Environment Contact Us or Call at 516.855.7283
