Homeowners who install solar power systems can receive numerous benefits: lower electric bills, lower carbon footprints, and potentially higher home values. But these benefits typically come with significant installation and maintenance costs and the magnitude of the gains can vary widely from one house to another. This article will help homeowners make the financial calculations required to determine the viability of solar power in their homes. Solar companies in australia
KEY TAKEAWAYS
· Those seeking to go green may want to consider equipping their home with solar panels.
· Not only is solar power good for the environment, but you can earn money selling back excess power to the grid.
· While costs have come down over the past years, installation and maintenance of solar panels can be quite expensive.
· Solar panels are best suited for homes that receive ample sun exposure throughout the year.
· Before committing to solar power, be sure to understand both the social and economic factors.
· Click Play to Learn if Solar-Power Is Worth It
· Understanding Solar Power
· In principle, working out whether it makes financial sense to install solar power for your home is simple. You will need to calculate:
The cost of a solar power system
How much energy it will produce
What you would otherwise pay for the same amount of energy
How many years it will take for your upfront investment to pay for itself in saved energy costs
Whether the system will pay for itself in five years
If it does and you have the upfront capital, it's probably a great idea. If you'll have to wait longer for savings or take out a loan to afford the system, you'll need to think the decision through carefully.
In practice, however, things are not this simple. There is a large variation in each of these factors, and that can make the costs and benefits of installing solar power for two homes—even if they are neighbors—radically different. There are some tools that can help, though. Solar Reviews offer a calculator that will quickly provide you with representative costs and savings for a solar power system in every part of the U.S. Calculators like this are a good place to start if you are new to solar energy and want to understand the basic cost model.
Why the huge range of costs?
Well, a lot of the variation depends on the size of the system you'd like to install and the type of panels you want to use. Whatever system you use, keep in mind that solar power is capital intensive and the main cost of owning a system comes upfront when buying the equipment. The solar module will almost certainly represent the largest single component of the overall expense. There are some additional costs, as well. Other equipment necessary for installation includes an inverter (to turn the direct current produced by the panel into the alternating current used by household appliances), metering equipment (if it is necessary to see how much power is produced), and various housing components along with cables and wiring gear. Some homeowners also consider battery storage. Historically, batteries have been prohibitively expensive and unnecessary if the utility pays for excess electricity that is fed into the grid (see below). The installation labor cost must also be factored in. In addition to installation costs, there are some further costs associated with operating and maintaining a PV solar array. Aside from cleaning the panels regularly, inverters and batteries (if installed) generally need replacement after several years of use.
Subsidies
While the above costs are relatively straightforward—often a solar installation company can quote a price for these for a homeowner—determining subsidies available from the government and/or your local utility can prove more of a challenge. Government incentives change often, but historically, the Australia government has allowed a tax credit of up to 30% of the system's cost. Solar companies in australia
2 More details on incentive programs in the Australia, including programs within each state, can be found on the Database of State Incentives for Renewables & Efficiency (DSIRE) website
3. In other countries, such information is often available on government or solar advocacy websites. Homeowners should also check with their local utility company to see whether it offers financial incentives for solar installation and to determine what its policy is for grid interconnection and for selling excess power into the grid.
