The Real Deal on Solar Power Cost – How Much Will You Spend on Solar Power?
15 to 20 years ago, solar power cost is at $45,000 or more. This ridiculously high solar power cost made people to doubt its use. Now that technology is more advanced, solar power cost is starting to drop; its popularity is starting to rise again.
Another reason for more people turning into solar power again is the fact that energy generated from traditional power sources such as coal is harmful to the environment, creating effects that can be felt by anyone. Before using the sun though, you must have first an idea on solar power cost before making a next step.
Technological advancement that leads to reduced solar power cost is the main reason why these systems became so popular. Installing a solar system at your premises entails a somewhat high upfront cost. It is this cost that scares a lot of people and make them change their minds.
Solar Power Cost
There is no solar power cost once the equipment needed to generate energy has been set-up. What must be considered therefore is the solar power cost in the installation of the power source. Solar panels account for the greatest percentage in solar power cost. Fortunately, solar panels are experiencing a steady drop in price range, because demands are increasing and the technology for it to be produced has improved drastically over the years.
Solar panels cost at around $8,000 to $10,000 per 1kW of power. A typical American home consumes 2 – 3 kW of power, which will translate to $16,000 – $30,000, without discounts. Other factors that contribute to an increase in solar power cost are labor, inverters, battery banks and mounts for setting-up the panels. These are all dependent (except inverters) on your preference, of course. For example, you can save solar power cost by installing the panels yourself, provided that you have the know-how.
If you want to store energy, then you would need a battery bank which will add to your solar power cost. If you would install more solar panels, then you definitely need more mounts, which will again increase your solar power cost. That being said, it would be wise to figure out what you need and do not need to save yourself from spending more money.
Solar power cost can also be reduced by using the incentives your state have for installing solar panels. The Federal Residential Renewable Energy Tax Credit, which was made in 2006, provides a 30% credit of the total amount of installation of solar energy equipment. If your total installation cost is $20,000, then there is a tax credit of $6,000, reducing your solar power cost to $14,000.
You can also use other incentive programs provided by your state to save more money. Each state have different policies regarding these incentive programs, so make sure that you check what your state has to offer.
Solar Power Cost – maintenance and repair
Other solar power cost to consider is maintenance and repair. Solar panels can last for up to 20 years, depending on how you take care of it.
Solar energy will reduce your yearly energy cost by more than 10%, depending on the amount of electricity you consume, where you live and the cost of energy in your area. Solar energy is 100% free and is friendly to the environment. You can kill two birds in one stone by saving money on energy charges and contributing to preserving our planet’s condition.
Page: Solar Power Cost
