Is it worth it to have a solar
system?
Maybe the
easiest way to say it is to compare buying a solar system to owning your own house or car versus renting
For example,
initially when you buy a house, it costs a lot to purchase. However, every
penny you spend is worth it because you own your house and if one day you want
to sell it, you can get most, all or even more of your investment back
depending upon the market value at the time of the sale.
To rent a
house or apartment is like throwing your money into a pit. Ultimately, you get
nothing in return for your investment and the money you have spent is
permanently gone.
Owning a hot
water or PV solar system is exactly the same as owing a house. For example, if you are using an
average of 420 kW of electricity per month and you are paying for generation,
distribution and taxes, this equates to $75 per month x 12 months = $907 per year.
10 years x
$907 = $9,070. If you pay the utility company $907 for 25 years, you will have
spent $22,675 and have gained nothing in return besides the power you have
used.
The cost of
installing a solar PV system that will generate around 420 kW per year is
approximately $11,900. Additionally, the federal government offers a 30% federal
tax credit which brings the installation cost down to $8,330. ($11,900 – 30% =
$8,330)
Look at the
table below to see your savings.
|
System Size
|
Installation Cost
|
30% Tax Credit
|
Installation cost after 30% Tax Credit
|
5 Years after Installation
|
10 Years after Installation
|
15 Years after Installation
|
20 Years after Installation
|
|
3.77 kW DC
|
$11,900
|
$3570
|
$8,330
|
-3,395
|
+1,140
|
+5,675
|
+10,210
|
|
Paying the utility company without a solar
PV system
|
$0
|
$4,535
|
$9,070
|
$13,605
|
$18,140
|
||
Let’s say
you decide to move and sell your house 5 years after you installed a solar
system. From the $11,900 that you spent for the installation, you have not recuperated $3,395 of your investment. However, your house's value has at least increased in value by $5,000
because of the solar system. That means you are not losing any money from your
initial investment plus the next owner will have the manufacturer’s warranty on
the solar equipment for the next 15-20 years. (Most solar
equipment has a manufacturer warranty of 10 and 25 years.)
Is that a
good deal or what?
Many people
don’t have all the money to buy a house. They have to take out a loan to buy
their house. You can do the same to purchase a solar system. When you take a
loan out to finance your solar system, the payback time will stretch another 1-3
years depending upon the solar system size and the interest on the loan.
However, even 3 extra years is better than giving your money to the utility company
to rent your power.
Just consider
the possibilities and do your own math. In doing so, you will quickly find out
that it is always a good deal to install a solar system, whether or not you pay
for it yourself or have a bank finance it.
Created and posted by Millville Heating Plumbing Solar
