Case Study in Monthly Savings
Solar Energy Alternative — The Power to Choose
In the past, there were few renewable energy choices. Heat and electricity came from the utility company and energy efficiency came mostly through updating appliances, insulation and windows. Green alternatives like solar energy weren’t really viable options.
Today there are many affordable alternative energy options, with solar power leading the way. In fact, there are three compelling reasons to choose solar panels:
Environmental: By using clean, solar energy you reduce your impact on the environment
Financial: You can lower your costs by using renewable energy
New Technology: It’s now efficient to harvest the sun’s energy
Employee owned and operated — serving the western United States and Canada. Let us help you secure tax incentives and rebates to make your system even more affordable.
At GGEC we know sustainable, renewable energy is not a trend, it’s a lifestyle
Sample Seattle Home Solar Electricity System Cost |
|
| Gross Cost (5kw* $7/W) | $35,000 |
| Federal Tax Credit | -$10,500 |
| Subtotal | $24,500 |
| Estimated Annual Production | -$2,970 |
| Avoided Energy Costs (5.5%/year increase) |
-$440 |
| Estimated Net Cost | $21,090 |
| Savings | $13,910 |
| Approx. Years to Payback | 7 |
I am trying to figure out how I am going to be able to afford to do this. I am 65, live on social security and small union pension.
I’m sure there is a way….perhaps something like being a demonstration project here at the beach in SW Washington?
All power sources have draawbcks. The two you mention, like nuclear, are relatively clean, which is a plus.Hydro is very cheap for the amount of energy we get, but our rivers are basically all dammed up already there isn’t a lot more hydropower we can get.Solar is one of the most expensive ways to generate electricity on a utility scale, but could be the cheapest way to generate electricity on a homeowner scale, at least for many urban homes. Unless one has a stream running through their property to run a water wheel, or strong steady wind, the other choices for getting power are using a gas- or oil-powered generator, or buying retail electricity from the grid. The generator will cost more per kWh over the life of the system, and the grid electricity could be more or less expensive, depending on where one lives. At the moment, the grid is usually cheaper, but not in all parts of the country.
I was looking at your Seattle area home cost example in going solar and had a couple questions.
What is the annual maintenance cost on a solar system?
What are the warranties on the components?
What is the useful life of the solar system?
How many kWh can a 5 kw solar system produce in a year in the Seattle area?
Can you explain how you arrived at the estimated annual production number of -$2,970?
How did you arrive at the avoided energy costs of -$440?
How do you figure the payback is 7 years?
I guess what I am looking for is a little more detailed analysis then what you provided so I can pencil out my own situation.
I don;lt want to talk to a salesperson at the present time but just want to get some more info and then decide in a year or two wheter to proceed before the Federal tax credit expires at the end of 2016.
Thanks.
I was looking at your Seattle area home cost example in going solar and had a couple questions.
What is the annual maintenance cost on a solar system? There is minimum maintenance required for PV system. Your location, will determine how often the panels will need to be cleaned. Cleaning is about all that is needed to maintain max efficiency.
What are the warranties on the components? Most panels and have a 25 yr manufacturer’s warranty. The string inverters generally have a 10 yr manufacturer’s warranty, and our work is warrantied for 10 years.
What is the useful life of the solar system? Over a course of about 25 years most panels efficiency drops to about 80% from its original rating, many systems will generate for more than 35 years at some reduced level of output.
How many kWh can a 5 kw solar system produce in a year in the Seattle area? 5kWH* You can do an approximation in the Seattle area by multiplying the system size by 3.76hrs (average hourly sun per day over the course of the yr)* 365 (number of days in a year)* .82(approximate derate factor) to get 5492.15 kWhrs.
Can you explain how you arrived at the estimated annual production number of -$2,970? This is based on installing locally made (WA) modules and inverters to maximize your state incentives of .54 cents. In this example we have a 5kW producing about 5492.15kWh/yr. So 5492.15*.54 gives you about $2970 in incentive rebates
How did you arrive at the avoided energy costs of -$440? The avoided energy cost is simply the power generated that you’re not buying from the power company times the rate.
How do you figure the payback is 7 years? By deducting the 30% Federal credit, the state incentives, avoided energy costs, from the gross system cost. then divide the new system by the estimated annual production.
I guess what I am looking for is a little more detailed analysis then what you provided so I can pencil out my own situation. John it’s good to be well informed when deciding on a PV system for your home or business. I hope this information will aid you in your decisions and feel free to email or call if you have any more questions.
I don’t want to talk to a salesperson at the present time but just want to get some more info and then decide in a year or two whether to proceed before the Federal tax credit expires at the end of 2016.
Thanks.
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