Six Easy Steps To Estimate Cost Of A Solar Power System

Solar power energy systems are not inexpensive. That stated it’s vital to compare them within context of other varieties of home improvement projects. Home patrons and realtors view a solar photovoltaic or photo voltaic hot water heating system as a major value-added enchancment – similar to adding a deck or transforming your kitchen. Plus in contrast to a deck or kitchen remodel, you also gain one-up on your power bills. Here are some foolproof ways to estimate the price of a solar photovoltaic or solar thermal system and to determine if a solar power system is sensible for you.

Six Easy Steps To Estimate Cost of a Solar Power System

Solar power energy systems should not inexpensive. That mentioned it’s vital to compare them within context of other kinds of home enchancment projects. Home patrons and realtors view a photo voltaic photovoltaic or solar hot water heating system as a big value-added enchancment – much like adding a deck or transforming your kitchen. Plus not like a deck or kitchen remodel, you additionally gain one-up on your power bills.

Solar power systems often get a further financial boost as well: many jurisdictions and utilities throughout the USA provide attractive financial incentives to drive down the upfront capital costs associated with a solar power system.

Here are some foolproof methods to estimate the cost of a photo voltaic photovoltaic or photo voltaic thermal system and to determine if a solar energy system makes sense for you. Let’s begin with a house photovoltaic (PV) system.

Step 1: Estimate your home’s electricity needs

To get started, it’s good to have a way of how much electricity you use. You’ll have a better point for comparison if you find out how many kilowatt hours (kWh) you employ per day, per month, per year. Your utility bill ought to include that information.

Of course, the utility bill may even display your costs and many utilities embody a graph that displays how your monthly energy use/cost varies throughout the year. That helps you estimate where your highest vitality use is and at what time of year.

New Home Construction

If you might be constructing a new home, then you’ll need to estimate your demand based on the kind of equipment you plan to put in and your home’s sq. footage. The pross call this “your load”.

To determine your anticipated load, create a table to record the watt use for each appliance. Each equipment – be it a water heater, electric light, computer, or fridge – ought to have a nameplate that lists its energy rating in watts. Or you may get the info from the manufacturer’s website.

Some labels checklist amperage and voltage only; to acquire watts multiply the 2 together (amperage x voltage = watts). In one other column, report the variety of hours every appliance is expected to operate. Then multiple the watts and hours together to estimate watt-hours used per day. Since it’s onerous to anticipate all electric hundreds (it might get tedious scouting out every toothbrush and cell phone cell charger), you might wish to add a multiplier of 1.5 to be safe.

Step 2: Anticipate the future

In 2005, common residential electricity charges across the USA ranged from about 6 to nearly 16 cents per kilowatt hour depending on the place you lived. Average retail and industrial electricity charges have elevated roughly 30% since 1999 and the upward pattern will probably continue especially as costs for the coal and hydropower used to generate that electrical energy rise as well. So assume about your house electricity wants and present and future price in relation to one another.

Step 3: How much solar do you get?

The Florida Solar Energy Center has performed a study to examine how a 2-kW photovoltaic system would perform if put in on a extremely energy environment friendly home throughout the continental USA.

The research accounted for all components that impression a PV system’s performance such because the temperature effect on the photovoltaic cells, the amount of sun peak hours in numerous regions, and the efficiency of inverter to convert photo voltaic derived power from DC to AC.

As the research implies, photo voltaic photovoltaic techniques work just about anywhere in the US. Even within the Northeast or in “rainy Seattle”, a pv system can pencil out if designed and put in properly. In New York or New Jersey, a one kilowatt system ought to produce about 1270 kilowatt hours of electrical energy per year, in Seattle, a one kilowatt system should produce about 1200 kilowatt hours per year. In the Southwest, of course, these ratios might be much greater.

Solar contractors in your area might help determine the best size on your solar photovoltaic system.

Step 4: Size your system

In general, photo voltaic photovoltaic systems sized between 1 to five kilowatts are usually sufficient to satisfy the electricity wants of most homes. One benefit of grid-tied systems is that you can use solar PV to complement or offset some of your electrical energy needs; therefore you can measurement your system to match your price range and all the time add to the system later if needed.

Also as a aspect note, here is a rule of thumb to remember that can assist you estimate the physical house your PV system might need: one square foot yields 10 watts. So in bright sunlight, a sq. foot of a standard photovoltaic panel will produce 10 watts of power. A one thousand watt system, for example, may need 100 – 200 sq. feet of area, depending on the type of PV module used.

Step 5: Know your rebates

Many states and native jurisdictions provide rebates, tax credit and other sorts of incentives to householders for putting in residential photovoltaic and photo voltaic domestic water systems. At the Federal Level, you can make the most of a 30% tax credit (of up to $2,000) for the purchase of a residential photo voltaic system at the very least until December 31, 2008.

Step 6: Run the numbers

Although the fee for a solar PV system will rely on the dimensions of the system you intend to install, your electricity rate, the quantity of kilowatt hours you expect to generate, and the state/local rebates/tax credits that may be available, the formulation for calculating the returns are just about the same.

For those who appreciate having the formulas, use the ones listed under to do a quick ballpark estimate of how much a solar photovoltaic system may cost you.

Retail Price for Solar Photovoltaic System
+ Building Permits
- $2,000 Federal Tax Credit
- State or Local Tax Credit or Rebate
- Utility Rebate or Other Incentive
= Net Investment

Kilowatts of electricity generated from PV per 12 months
x Kilowatt hours used per 12 months
= Annual Kilowatt energy from the PV system

Annual Kilowatt power from the PV system
x Current Residential Electricity Rate
= Annual $$ Saved

Yearly Excess PV Energy Produced
x $$ credit score applied per watt
= Annual Value from Net Metering

Of course, a more accurate assessment may be made by a pro. Work with a solar energy contractor to dimension and price the appropriate system for you. As is true with any main purchase, don’t hesitate to ask for several bids from totally different contractors.

Many solar energy providers will provide you with a complete estimate. Helpful information to know includes:

- Total cost to make the system operational (labor cost for design and set up and equipment costs)
- Equipment (Make and Model)
- Warranty info
- Permit costs, if wanted
- Tax, the place applicable
- Federal tax credits
- State or local jurisdiction tax credits or rebates
- Utility rebates
- Expected Renewable Energy Certificates or Net metering credits
- Expected operation and maintenance costs
- Projected savings

Solar Thermal (also known as Solar Hot Water)

Solar thermal programs capture the sun’s vitality to heat water and are one of the vital cost-effective renewable energy systems. They are used to heat hot water tanks and/or a heating system. A solar pool heating system is another sort of solar thermal system designed particularly to warmth a pool or scorching tub.

Generally it’s value investigating the economic viability of installing a solar hot water system in case you have an electric water heater with utility rates of not less than 5 cents per kilowatt hour and have tax credits or rebates available. (It could even be worth changing out a gas-powered water heater if your prices are a minimum of $8/million BTU).

The formulation for costing out a solar water heater system are much like estimating the associated fee for putting in solar PV system. Many solar energy professionals may help you decide what system might work greatest for you.

Heating Your Swimming Pool with Solar Power

Although few jurisdictions provide monetary incentives for using solar vitality to warmth a swimming pool or sizzling tub, in general, using solar energy to heat your pool is a “no-brainer” from a return on investment standpoint.

The electricity used to warmth a pool in the course of the swimming season often amounts to the identical amount of energy that homes-without-pools consume over a year. Combining a solar thermal system to generate warmth for the pool with a solar thermal pool cover to retain the heat generated can additional maximize efficiencies and extend your swimming season.

Most installers advocate that a photo voltaic collector used to warmth a pool is sized at roughly half the square footage of your pool floor area. Solar thermal panels sometimes last 10 – 20 years and come with a 10-year warranty.

How lengthy it takes to interrupt even on the price of your solar power pool system depends upon where you live. In California or other parts of the Southwest, you may break even in 1 to three years however places as “far north” as Canada, a solar pool heating system pencils out over a barely longer period of time.

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