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Energy Efficient Appliances

Which appliances are most energy efficient and is the extra expense worth it?

Which appliances are most energy efficient and is the extra expense worth it?

A large number of household appliances available to be purchased in the United States are Energy STAR affirmed, which implies they utilize less energy than their ordinary, non-Energy STAR partners. Notwithstanding, Energy STAR machines frequently include a significant price premium, making numerous property holders to ponder: are the more productive appliances justified, and worth paying a premium?

The Energy STAR program was launched and maintained by the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Energy (DOE) in 1992.

By and large, most of the resulting test comparisons were primarily positive. The amount of money you’ll save relies upon your power rates (from your power company) as well as the machines you’re hoping to change out, and also the incentives accessible for these new energy efficient items in your home or business.

Energy STAR appliances should lessen your electricity bills in the long term.

By and large, home machines – including clothes washers, humidifiers, dryers, dishwashing machines, refrigerators, freezers, and air purifiers –represent 20% of your home’s complete electricity bill. An Energy STAR apparatus will utilize somewhere in the range of ten to fifty percent less energy every year compared to its non-Energy STAR proficient counterpart.

By replacing the appliances you have in your home with Energy STAR certified machines, you are embarking on a long term investment decision that will lessen your utility bill which is particularly imperative when you perceive that power rates are ever-increasing. It is also to be noted that a few machines utilize more energy compared to others. The sum you spare is likewise reliant on how long you have been using your appliance and the power rates which you are paying.

Clothes Dryers

Dryers are one of the most energy-hungry appliances you’ll find in the normal American home. As per the NRDC, a run of the mill dryer can expend as much energy every year as a clothes washer and dishwasher combined and peradventure you have a more seasoned model, the number can turn out to be significantly higher. Energy STAR dryers utilize 20% less power than a customary model and will spare you approximately $210 in electricity bills through the lifetime of your dryer.

Washers

Peradventure you combine your energy efficient dryer with a energy proficient clothes washer; you’ll see extra reserve funds on your electricity bill as well as your water bills. An Energy STAR guaranteed garments washer utilizes forty to fifty percent less energy and around 55% less water when compared to standard washers.

If you replace your regular clothes washer with a energy effective model, it is possible for you to set aside to $50 every year on your water and utility bills. Energy proficient front-loading garments washers likewise require less clothing cleanser compared to top-loading garment washers, thereby enabling you to spare more cash weekly on detergents.

Refrigerators

There had been huge advances in cooler innovation in the course of recent years, which implies that old fridges are one of the greatest energy hoards in numerous U.S. homes. The Energy STAR affirmed freezers that are available in the market today are almost 10% more energy effective compared to other models which meet the government least energy standard. Peradventure you have a more seasoned fridge, you can spare considerably more on your energy bills with a energy proficient freezer, Energy STAR qualified freezers utilizes about 40% less energy than the traditional models that were sold in 2001.

Dishwashing machines

Dishwashing machines may not utilize the same amount of power as a continually running fridge or even a high-heat garment dryer, yet the power and water which is expected to operate a dishwasher add up. Energy STAR ensured dishwashing machines are 12% more proficient than non-guaranteed models as of now available to be purchased, and using an energy-efficient dishwasher will spare you approximately $25 per year.

Energy proficient machine discounts can build your investment funds

While energy proficient machines can include some significant price premium, they’ll spare you cash on the long run by lessening your power bills. By and large, there are additional states, nearby, or utility discounts that will lessen your daily costs. Also, in case you’re disposing of a more seasoned apparatus, you might be given a discount for reusing it.

When would it be advisable for you to put resources into top energy efficient machines?

When you change out the apparatuses in your apartment with energy proficient upgrades, then you can spare many dollars annually on your energy bill. The reserve funds you accomplish from a solitary energy effective apparatus may appear to be little without anyone else, yet your home machines will keep going for somewhere in the range of 10 to even 20 years, those little months to month investment funds will become very significant with time, and mostly, the value premium you will pay will be quite more than counterbalanced by your energy investment funds.

That being stated, the measure of cash you’ll spare with energy effectiveness measures is subject to the amount you’re willing to contribute. For instance, you can spare a couple of dollars from your bills by using LEDs in the place of glowing lights, but just in case you want to significantly reduce your bills, you’ll need to change out the machines and systems that utilize the most energy.

Considerably more noteworthy returns: introducing sunlight based board system

While energy proficiency measures will help protect your house against increasing power costs, you can make it a stride further by introducing sun powered panels on your properties to produce your own perfect power. When you decide to “go sunlight based,” you guarantee that your power rates will stay stable throughout a period of 20 or more years. The expense of introducing solarhas decreased by in excess of 50 percent in the course of recent years, which implies your sun powered investment funds are more than any time in recent memory.The national governments as of now set gauge proficiency principles for appliances available to be purchased in the U.S., which implies that no products available in the market are “wasteful.” Energy STAR ensured machines, notwithstanding, are more effective than the regular models accessible available to be purchased. Your general profit now depends on the efficiency of your present appliances which is to a great extent the function of how long you have been using it. You’ll see progressively extreme investment funds when you change out your more established ordinary machines with energy effective choices, as opposed to change outing a more current apparatus.

Reasons Why Time-Of-Use Pricing Method Will Increase Your Electricity Dues

Decades ago, electricity bills were easier to interpret. This was done by obtaining the magnitude of current used, multiplied by the prevailing cost per kilowatt-hour (kWh), in addition to other non-specific charges stress-free.

Recently, power companies like PG&E have made moves on changing the method of payment for electricity.  The costs of electricity production are higher when demand is high compared to times when demand is low. Take for instance, when most people leave their houses for work, there is low usage and electricity is cheaper than when they come back from work and switch on electrical gadgets. At these times, there is pressure on PG&E to produce more electricity thereby leading to increased energy costs.

This pattern has been seen repeatedly in California. Last year, the U.S. Energy Information Administration wrote an article stating how California’s energy costs have been on the rise yearly during times of increased demand per day.

An Hourly Breakdown of California’s Energy Price

The cost of electricity from 8 PM in 2016 per megawatt-hour was $35which increased to $60 in the subsequent year partly due to the high reliance of its energy companies on redeemable sources of energy like solar power. Of course, there was an obvious decrease in its production cost during times of low demand.

The major concern now is the mode of transformation of the energy market since putting more energy to use as at the time needed is costlier, thereby resulting in rapid increase in prices at both the early and late hours of the day; except for institutions who remit a constant price for electricity since there’s no way electricity providers can recover the costs incurred in rendering electrical services in times of very high demand excluding the general cost of electricity.

Hence, the reason core California power companies are currently introducing a new pricing method for electricity named “Time-of-Use”.

Energy Prices – Time-of-Use Pricing

Time-of-Use Pricing simply means you are charged according to when you utilize power either at home or for business.

Time-Of-Use (TOU) pricing segments hours of the day, with each time frame differing according to dead periods. As of April 2018, PG&E mapped out its plan (applying E-TOU-A) thus:

This may look easy but for the fact that there is a slight change of plan from June to September, with a reduced rate of $0.32 and a high rate of $0.40, while between October and May, the reduced rate is $0.27 when the inflated rate is $0.28. So, seasonal variations also determine prices PG&E customers pay.

The majority of energy users are often faced with the sudden inflated bills of the time-of-use pricing method.

High costs of TOU pricing compared to the traditional or basic method is the main concern. Looking at the basic plan, for instance, the normal prevailing price is $0.21 per kWh, which is lesser than the lowest pricing TOU rate by 6 cents and summertime high rates by 11 cents.

Energy users should be ready for a costlier and flexible pricing system as the time-of-use method is now the standard being set (by PG&E as from 2020).

PG&E is now using TOU instead of the traditional rate. Just like every other working class individual, the house owner is absent from home during early bright hours of the day and comes home every evening except for weekends. This means 70% or 700kWh of energy consumed in May during zenith costs periods (3am-8pm on workdays) and 30% or 300kWh during idle days.

Considering this, their bill would amount to $377 this May which reflects an increase of 78% more than the amount usually paid using the previous pricing system. This should show you a glimpse of what residents in California will experience when TOU is standardized.

The news is that these high costs are just going to increase. House owners have overlooked the fact that the difference between the zenith and off-zenith costs has been on the increase in the last ten years. As PG&E is implementing the TOU pricing in recent years, analyses of PG&E pricing rates have shown that there is an increasing gap between zenith and off-zenith costs. Between June and July 2013 during summer, commercial zenith and off-zenith costs recorded a difference of 3 cents; during the same time in 2014, it became 3.5 cents. Recently, the difference is over 5 cents.

The pattern is very obvious. With the passage of time, the probability of an increase in the difference between zenith and off-zenith costs is high. Energy will become more unaffordable as at the times itis most needed.

California residents and the entire United States will now have to adjust their ways of life to a larger extent so as to put up with this experience. The way you use your electrical equipment at home will be greatly reduced so as to conserve energy. Otherwise, you would have no choice than to pay up the charges.

Increasing Energy Prices – Is There Another Way Out?

A rising proportion of California house owners have started installing solar power systems on their rooftops so as to relinquish dependence on local power utilities. Following the uncontrollable increase in energy prices, the period at which the calculated cost of obtaining a system will be at par with current electrical charges is rapidly approaching.

It is currently calculated that a typical house owner can save enough money (meant for electrical bills) to buy a solar power system between 5 to 7 years, determined by usage and normal charges. Energy prices are on the high side and increasing daily. Therefore, the above stipulated time frame is expected to decrease. This is why we advise house owners to consider installing solar power. This way, you are exempted from financial pains.

Lastly, we suggest storage batteries for a more dynamic and efficient system for both new and old methods which in turn increases your savings.

What is The Difference Between Micro-Inverters and String Inverters?

  • What is a Micro-Inverter – a micro-inverter can also be referred to as a solar micro inverter. It is a piece of electronic equipment used in PV cells for changing the waveform of current i.e. changing Direct current (DC) to Alternating current (AC).
  • What is a String Inverter? – String inverters can also be referred to as centralized inverters. It also converts Direct current (DC) to Alternating current (AC) but here the inverter is connected to a string of solar panels.

When a micro-inverter is better than string inverters

  • Easy to install and use
  1. You don’t need an expert to install it for you. Micro-inverters can be easily set-up by you thereby saving you the cost of paying experts to do it for you.
  2. It does not require any additional hardware or manual configuration. It is Plug-and-play for the most part.
  3. Micro-inverters are connected to an AC source carrying normal household voltages. Whereas, central inverters demands connecting multiple strings of thick DC wires from the solar panels to the central inverter through a tunnel.
  4. The installations of central-inverters demand 4-8 categories of high voltage DC wires which need to be connected correctly to the inverter.
  5. In the installations of string-inverters, the installer has to calculate line losses to determine the size of the wire that will be required to connect it to the panels. Also, the panels, central inverters, and the racking all require different grounding system.
  6. Even for the loading of the string-inverters, it requires that the person installing it design the system to be able to load balance each strand of panels.
  7. In a central-inverter, when a panel malfunctions, it is going to be hard to determine which panel exactly in the system is malfunctioning without testing each one of them with a micrometer.
  • Effectiveness
  1. Micro-inverters make the best use of the power output of each individual panel resulting in an additional power of 15% per panel.
  2. Central inverters will not function as it should if there is any shading whereas a micro inverter system will function optimally.
  3. If a panel malfunction in a micro-inverter system, it will not affect the whole system and the exact panel that is malfunctioning can be easily determined.
  • Safety
  1. Micro-inverters are safe to use, unlike string-inverters which expose the person installing it to hundreds of volts of unsafe DC power while micro-inverters do not.
  2. Micro-inverters are safe to handle as they do not produce power when they are not connected to your solar panels. On the other hand, a string inverter needs to be handled safely because they produce power as soon the panels are exposed to light.
  3. A string inverter can be wired incorrectly in a lot of ways which could lead to severe damage or even kill the installer.
  4. There is no way a micro inverter can be wired incorrectly because it is plug-and-play.
  • Durability and Cost Effectiveness.
  1. Micro-inverters last for a very long time having an average lifespan of about 32 years and also a longer warranty of 25 years whereas central inverters have a shorter lifespan and a shorter warranty period of 10-12 years.
  2. The cost of maintenance for a string inverter can be more as it will need replacement in 10-15 years.

Is Switching to Solar Panels The Way to Go?

Most solar companies have different ways of promoting their products, such as “do you know that having a solar panel can help you save lots of money?” They make it look really light, truth be told, if solar is a relatively long time investment for you it relies on some major agents. Before jumping at the opportunity, we advise that you try making use of the simple guide and make your way through the sales pitch and know if the solar panels are really worth spending your money on.

Determining if solar is worth it

When going through the solar choices, here are some questions you can ask to ascertain if solar is the way forward for you, including:

What is the cost of your electricity bill?

The present state of your electricity bill is a major determinant of the amount you can save by installing solar. You pay the bill per unit of the electricity you make use of and the amount usually differs based on the part of the country you live in. In some sections of the country, electricity bill can be as low as 8 cents per kWh; while some you could as much as 20 cents or higher.

When going solar, you install a small power plant on the roof of your house to substitute the main source of your electricity. Therefore, it means that homeowners with large utility bill will opt for solar installation which helps them save more.

What is the cost of the solar panel system?

Installation of solar does vary depending on the solar company of your choice and the type of equipment you install. Though cheap solar panels could seem worth it for 20-years savings not to be a waste it is best you invest in quality equipment even though it might seem more expensive. It best you take your time and review all the equipment and the prices to determine which suits you and your home best.

Also, remember to make inquiries about solar rewards and abatement available wherever you stay. They can cut the price by 50% or even more. The federal government normally offers about 30% solar tax discount and most states and cities have some added financial advantage for the citizens. Some companies help customers go solar by giving them financial aids.

How do you intend to finance the solar panel system?

solar panel system

Whether you decide to buy or rent your solar system for long-term use, the best means of purchase still remains by cash. It will help save cost even though the money needed will till run in tens of thousands. While solar leases and the power-purchase agreement does not need down payment of cash and it comes along other solar benefits of free maintenance and trade-off; the amount needed could just be about 10-30%of the utility bill of electricity. How workable is this in the real world.

What is the essence of having a solar panel when one is not staying in the sunny Southwest?

Though solar panels enjoy sunlight, you will be amazed to realize that you don’t have to be based in sunny Southwest to enable you to save. Most of the states like New York, Massachusetts, and New Jersey is known for the cold which is in the Northeast of the country tend to make use of solar panels more because the rate of the electricity bill is high and there are available for them.

Should You Lease or Loan Your Solar Panels?

Solar panel lending or a PPA agreement basically means you are renting the solar panel from the manufacturer and that the manufacturer still owns the solar panel. On the other hand, if you install your solar panel system on a loan agreement, then it belongs to you. It can be pretty difficult to make the decision whether to loan or lease your solar panels.

Pros and Cons for Solar Renting

This write-up will examine the pros and cons of both methods and provide you with all the information you need to know to help ease your decision.

solar renting pros
  1. The financial implications of a lease or loan agreement: both the lease and loaning of the solar panel help you save money. Both the leasehold agreement and the loan agreement lead to a reduction in your energy expenditures. In both forms of solar panel agreements, you pay less than your usual electricity bills.  The loan agreement, however, saves you more money than the leasehold agreement. This is so because you pay for the panel loan over the course of 7 to 15 years, whereas, you have to continue paying a leasehold agreement all through the term of the agreement. Solar panel owners get a solar investment tax credit (ITC) which is the value of 30% of the cost of solar installation and some states also provide Renewable Energy Certificates (SRECs). Interest accrued on a solar panel loan can be tax deductible.
  2. Cost of maintenance of the solar panel: solar panels generally do not need much maintenance, but when maintenance is required, a loan agreement means the owner of the solar panel has to pay for such maintenance while the manufacturer pays for maintenance of the leasehold agreement since the solar panel is still a property of the manufacturer.
  3. Does the amount payable increase over time in leasehold or loan agreement? : The answer to this is “yes” for the former and “no” for the latter. The premium paid monthly on a leasehold agreement increases annually based on the initial agreement reached or changes in company policy, while the agreed premium on the loan agreement is fixed during the duration of payment and cannot be increased.
  4. Processing time involved in leasehold or loan agreement: leasehold agreements typically do not take time and can be concluded in just a visit whereas the opposite applies for the loan agreement. The loan agreement usually takes time to be concluded.
  5. Ease of selling buildings with solar system leasehold or loan agreement: for you to sell your home with a solar panel leasehold agreement attached to it, you have to either buy out your leasehold agreement or transfer the new lease to the new owner of the building. In the case of a loan agreement, your options depend on if the loan is secured or not. It is far easier to sell a property with a solar loan agreement than that of leasehold agreement. 
  6. Ease of obtaining a leasehold or loan agreement: All fifty states in the U.S. allow for the loan agreement of solar panels ownership, while some regions and state frown upon the leasehold agreement of solar panel ownership. Washington DC is one of the regions that allow for a leasehold agreement.

    These are the factors you should consider before opting for either leasehold or loan-based agreement.

Is Renting Sun-Based System Always The Best Thing To Do?

In recent years, third-party sun-based renting has become extremely popular, which has played a major role in propelling rooftop sun-based systems into the prevailing current thought. According to the SEIA, at the beginning of 2014, solar renting/PPA financed about 50% to 90% of the rooftop sun based system installations based on the state. It can be said that the U.S. sun-based system industry has changed radically from solar renting.

But is renting sun-based system always the best thing to do? As a smart sun-based system shopper, you should be careful since these financial mechanics are still comparatively new. This point can be further seen in the recent attempts of quite a number of individuals of the national legislative assembly to give a better understanding on how solar renting is promoted to consumers for both the interest of those in the market and also for the solar industry as a whole.

Is solar a beneficial bargain? An example of a solar rent marketing promotion

The advantages of solar rent are mostly marketed this way: You get a sun-based power system on your roof for a small amount of money or even no money at all (based on the type of solar rent), and the organization will sell the electricity to you at a rate which is much lesser than what you normally pay for electricity. You spend less on your electricity bill without having to pay to have your system to be set up. Apparently, both you and the solar organization benefit from this.

Merely looking at it, it seems like a cool bargain, but as discussed earlier, ‘free sun-based power systems’ are not precisely free. You indirectly pay for the power that the panels generate, and in so doing, over the period of your 10 to 20 years contract, you pay for the system.

It’s important for you to consider if signing a solar renting contract will save you money in the long run. Without considering a solar rent marketing promotion, what exactly are you getting when you sign a solar rent contract?

Are some sun-based power system companies not been truthful about solar renting?

An issue of interest about potentially misleading marketing patterns by some solar rent suppliers was raised last month by 12 members of the House Republicans, which was led by Paul Gosar from Arizona. In a letter written to the Chair of the Federal Trade Commission, the representatives identified a number of refutable practices that solar shoppers should bear in mind and that the FTC should look into.

Some of these practices are:

It has been made known that some firms are using possibly misleading marketing methods and exaggerating potential savings to get consumers to sign prolonged rents for rooftop sun-based power systems. According to reports, consumers are being lured by some solar renting firms who offer no rent money for a 20-year rent agreement. The marketing presentation, notwithstanding, supposedly amplify power grid rates. If these accusations are true, these potentially deceptive rents could be a grievous threat to consumers as they are bound to our citizens’ homes and have the possibility to induce substantial damage to the solar industry.

In a similar move the previous month, four House Democrats who were all from Arizona (one of America’s major solar markets) asked the Consumer Financial Protection Bureau (CFPB) to look into it whether it is possible for consumers to be harmed by the sales practices.

In the November 19 letter, they emphasized their support for the flourishing rooftop sun-based power industry. They also stated the need to address a number of issues to ensure consumers considering solar are not deceived by solar salespeople who deliberately omit essential information or skip over the disadvantages of solar rent.

They asked the CFPB questions like:

What actions has the CFPB taken to look into the possibility that deceptive marketing methods are being used in the rooftop solar industry?

What measures are put in place to guarantee that consumers who are looking at entering into solar renting for a prolonged period are made fully informed of the long-term implications of these proceedings? For instance, studies suggest that third-party rents may lead to an escalation of prices to house sellers with the outcome that other buyers will not want to purchase the sun-based power system or cannot assume the rent, therefore making real estate transactions complex.

What actions has the CFPB carried out to look into the displeasure that has developed from the marketing methods being used by some rooftop solar renting companies?

Has the CFPB thought of doing an employee reappraisal of third-party-rents in the rooftop sun-based power industry and giving advice on how consumers considering these transactions can be educated?

The CFPB is yet to release anything a response to the Democrats’ letter as at the time of this writing, and the FTC addresses nothing in particular to third-party solar rents on its website. It’s definitely just a matter of time before all these changes are made. Even though politics has a role in the ongoing discussion, the fact remains that there is a need for robust competition and transparency in the market for an industry to be a workable, sustainable one. If the CFPB and FTC intervene to regulate the sales practices of solar rent suppliers, it will definitely result in amelioration on both these fronts for the absolute benefit of both the consumers and the solar industry.

Can we safely conclude that solar renting is not a good idea?

No! It only requires that you do your own research to ascertain that you are getting the best available bargain on solar. You should also bear it in mind that deals differ and some deals are more beneficial than others. You need to be wise when shopping for solar. Below are some helpful points to help you choose wisely when shopping:

solar renting
  • Assume your rooftop is an asset that solar renting firms want to possess. The amount of money these firms make is dependent on the amount of power your panels produce.
  • Think of a solar rent just like any other major purchase: Be proactive; do not just consider the fact that you may not pay anything up-front.
  • Try to get the best deal by comparing varieties of options from different companies. There are a number of competing companies that offer solar renting bargains; use this for your advantage.
  • As an alternative to solar renting, consider a solar loan. Solar loans offer almost the same advantages as solar renting with the additional benefit of you owning the system when the loan is paid off.
  • If you have enough money, then you should consider buying a solar system. For those who can afford it, it’s often always better to go for the up-front buying of the solar system.

Which is Advisable, Buying or Renting Your Solar Panels?

Your specific financial objectives determine your choice on how to finance your sun-based power system.

The primary difference between purchasing and renting a sun-based PV system is in possession. Purchasing a sun-based power system (either by paying directly with cash or paying off a solar system loan) gives you full ownership of the system. The sun based power system is owned by a third party if you rent the system or consent to a PPA (Power Purchase Agreement).

This difference affects your sun-based power system’s investment, maintenance cost, terms, savings and degree of profitability. Moreover, not all organizations offer solar renting as well as PPA so do well to ensure that your selected supplier offers the financial option which you desire. Note that PPAs are not lawfully allowed in many zones.

It is best for you to acquire a sun-based power system with money or financing a solar loan purchase if you….
  • Need to maximize the budgetary advantage of introducing a sun-based power system, instead of taking advantage of the ecological  benefits of the system alone;
  • Are qualified through bureaucratic venture charge credit to decrease your government and state charge risk;
  • Are business and you can take advantage of tax cuts by regarding the sun-based power system as a depreciable resource;
  • Need to expand your home’s market estimation by introducing a sun-based power system.
Your best solar alternative is to rent or PPA when you…
  • Are basically interested in taking advantage of the ecological benefits of the system as opposed to maximizing the budgetary advantage of introducing a sun-based power system;
  • Need to stay away from the obligations of upkeep or fixes for sun based power system;
  • Are not qualified by investing in a sun-based power system to decrease your government and state charge risk;
  • Cannot wait till the next year for the budgetary advantage of tax credit.
Carefully analyze: Purchasing VS renting solar

There are a lot of distinctions in the cost, upkeep, terms, financial offset opportunities, and investment savings/returns which all depends on your choice of financing.

Cost of solar installation

Solar rent/PPA
  • A sun-based power system can be gotten for little money or even nothing.
  • Only the third party owner of the system can receive incentives, refunds, and tax credits so you won’t eligible for all those.
solar installation cost
Solar loan/purchase with money
  • Before refunds and incentives, the sun-based power system can cost between $15,000 and $30,000.
  • You can get up to a 50% reduction in the total cost of cash purchase. Majority of the solar installers will deal with the administrative work and modify the price tag to reflect the total cost.

Solar Maintenance

Solar loan/purchase with money
  • You are responsible for the upkeep of the system because the system belongs to you. Solar equipment lasts for a long time and often comes with warranties so there is less upkeep for you to do.
  • Your purchase might not include an application to track your system’s framework execution.
Solar rent/PPA
  • The obligations of upkeep are solely by the solar company because they own the system.
  • Most of the time, you get an application that tracks your system’s framework execution.

Terms

Solar loan
  • Loans are commonly accessible for terms of 10 to 20 years at an interest rate of 3% to 8% provided you have a 640 or higher FICO rating.
Solar rent/PPA
  • Solar rent/PPA is commonly for a period of 20 to 25 years after which you can decide to renew the agreement or buy the system directly.

Investment savings/returns

Solar loan/purchase with money
  • Based on your property as well as the incentives in your zone, you can spare up to 40% to 70% on power cost throughout the lifetime of your sun-based power system.
  • You get free electricity throughout the lifetime of your sun-based power system (which usually ranges from 25 to 30 years).
Solar rent/PPA
  • Based on your property as well as the incentives in your zone, you can spare up to 10% to 30% on power cost.

Before making your decisions on whether to purchase or rent your sun based power system, thoroughly analyze your financing options. Make sure you explore all the available financing options before making your decisions. All scenarios are not the same so there a quite a number of factors to consider to determine what is best for you.

Why Go Solar?

Since the introduction of solar power into the modern world, many reasons have been generated in support of the idea. Promoters of the ideas have tried to come up with several reasons why we need to go solar. A benefit of going solar that affects us all is that it protects the environment. Because of the carbon emission that is associated with the other sources of electricity, this tends to affect the environment in certain negative ways. The emissions pollute the air, causing climate change and some other environmental diseases. Climate change has been identified to be the cause of many natural disasters such as tsunamis. This is why people and organizations who are concerned about environmental issues embrace the idea of going solar. The electricity that solar panels give is totally free of emission.

Those who are into real estate use the installation of a solar system in the building they are trying to sell as a means to increase the value of the property. Studies have shown that people tend to buy more quickly and pay more for homes that have solar systems installed in them. Another specific benefit of solar system installation offers is that you have the opportunity to be energy independent. With the use of a solar power system, you begin to provide yourself with electricity totally free from any form of electricity bills. This is the most striking aspect of the “going solar” idea.

solar energy

Because of the fact that solar energy is renewable energy, it makes it possible to independently generate electricity over many years for free. Solar energy is gotten from the sun, and the sun is a free gift of nature. No one will bill you for tapping energy or generating electricity from the sun. You are an independent generator of electricity. This brings us to take a look at this major benefit. Should you consider the option over electricity that is generally provided? Which is more expensive: paying electricity bill of paying the cost for solar system installation?

Electric Costs vs. Solar Costs

In considering if you should go for solar electricity generation for your home, there are two major factors that you need to put into consideration. You need to know:

  1. The cost of solar system installation and
  2. The rate of your electricity utility bill.

The decision to go solar can only make sense if the cost associated with the solar system is less than that of the cost you pay for grid electricity.

For solar energy, the cost of solar panels, which is the major cost you will incur when going solar, has proven over time to come down. The cost of solar panels when it was first discovered is not the same as it is today. In the past, many could not afford to make the purchase because of the high cost involved. Today, solar panels have commercial value as a result of the reduction in cost. Many homes now use solar systems since they can afford it.

For electricity, the cost of grid electricity has over the years fluctuated, rising more times than it has fallen. If it has been this way over the last ten years then its only makes sense to predict that in the years ahead, the cost of electricity will keep rising. Therefore, the idea of going solar is a welcome idea.

Key facts about Electric Costs vs. Solar Costs

  1. The rate of retail electricity has fluctuated over the course of 10 years. Statistics show that it went up more times than it came down. This trend is not likely to change over the years ahead as the cost surrounding the production of retail electricity keeps rising. For example, the cost of natural gas has increased and as it does,  the electricity rate will also increase.
  2. When you install a solar system in your home, the cost of electricity in your home will be totally free.
  3. The solar system pays itself off over the years. It is true that it is costly to install a complete solar system in your home. However, since the system has a lifespan of over 25 years, it will pay itself off in about 5 to 10 years after installation. You know this by calculating how much your electricity bill would have been over those years if your home was without the solar system. Therefore, paying the cost of solar system installation is like paying your electricity bill in advance. If you made the installation with a loan, you would eventually pay off the loan in the lifetime of the solar panel.
  4. You save money in the long run with the solar system. This because the cost of solar installation will not be paid in the entire lifespan of the solar system. You will still have some years left after the solar system has paid itself off.

What should you expect after going solar?

  • Your electricity bill will certainly be reduced or entirely go extinct.
  • You might continue to pay stipends over the years to cover the cost of the solar panel if you financed the installation through loans. This means the freedom might not be immediate but you will eventually get to consume electricity for free. It’s only a matter of time.
  • If electricity pricing rates eventually go down, you may temporarily find yourself paying more than you would have if you stayed with retail electricity. Chances are that the price will eventually go back up. Statistics back it up. You, therefore, have nothing to worry about.

The competition between solar and retail electricity is already concluded. Going solar has been and will continue to be a viable choice.

According to the Latest Reports, The Value of a Home Appreciates because of Solar Panels

According to a recent study by the Lawrence Berkeley National Lab (LBL), the installation of panels for solar power generation can cause a major appreciation in the value of your property. A report titled “Selling into the Sun: Price Premium Analysis of a Multi-State Dataset of Solar Homes”, says that in California, the homes that have panels for solar energy are more expensive than others that do not.

Is value added to a house because of panels for solar?

Panels for solar power increases home value. If you are considering buying a solar power generating system for use in your home, the information found in the LBL study will show you that a reasonable investment is being made. The LBL study discovered that homes in states including California, Connecticut, Maryland, New York, Massachusetts, Florida, and Pennsylvania with solar panels enjoy benefits from a ‘solar premium’ if sold as a result of the willingness of buyers to pay extra for homes with solar panels.

solar power home value

What value does solar power add to homes?

Example: A 5 kilowatt (KW) system of solar (the nation’s average) offers power worth 5,000 watts. LBL declares that each solar watt adds approximately $4 to the value of California homes and approximately $3 for a unit watt in other states. Hence, solar homes ought to be sold for approximately ($4 x 5,000W =) $20,000 higher in California or ($3 x 5,000W =) $15,000 higher outside of California.

Potential buyers who consider whether panels for solar power appreciate the value of homes was pleasantly surprised. The amazing thing about the figures is their closeness to what a brand new solar system can be purchased for today.

Our price analysis of a system of solar of 6KW in California shows many of the more costly systems are above $4/W. And be conscious that you would pay for the cost before taking the magnanimous 30% incentive of federal tax which is available

Cheaper power from solar is your optimal investment in California

The feeds state that the distinction between the California premium panels for solar and non-Californian states is ‘not significant by statistics’: Premiums that are lower may be as a result of “estimates of income and net costs that are lower” that are in other states. In other words, non-Californian states premium deals with installation of solar prices and rates of electricity that are lesser instead because the valuation of solar there are lower.

All these imply that if your house is sold quickly after the installation of a system of solar, most or every of your investment will be recouped while money from your bills of power is saved. This is a confirmation of what we have stated earlier: Power from solar system’s periods of payback is not something of excess concern.

Either the value of your home will be significantly increased by your system of solar if you make the decision to sell your house off, or by itself, it would pay off through the savings of power bills, before moving out. In either case, a good investment is solar.

Other fascinating points in the feeds include:
  • The premium for solar for homes that are newly built was a little bit lower than homes that are older, showing that installations of solar that are retrofit are equivalent to systems that are built into the house.
  • Homes with bigger systems have a smaller $/W premium, showing the possibility of an effect which is known as ‘green cache’. As stated in the report, “Purchasers may be desirous to pay a specific amount for owning a PV system of any size on their homes and increment that is more dependent on the system’s size”.
  • The writers propose that homes which opt for solar via leases or programs of PPA should be future research areas; the recent study scrutinize only homes that have systems that are owner-owned.

Solar Panels And Their Incredible Savings, See How Much You Can Save

Environmental improvement is not the only good reason why you should procure your solar panels, you can make a lot of incredible and mouth-watering savings over the lifetime from your solar panel system.

Can solar panels really help make good savings?

The advent of diverse available investment opportunities in this present time has raised a lot of skepticism for new promising products that can help consumers save a lot of money. Solar panels are also a very good way of saving. They help to reduce your electricity bill and serve as a means of upgrade for your house. So, if you’re asking if solar panels really help make good savings, the simple and straight answer is YES. And then, how much you will be able to save is dependent upon a lot of factors.

Some of these important factors are the size and angle of your roof and direct hours of daily sunlight. In addition, the local electricity rates are also key determining on how much you can save from solar.

Solar panels save how much from electric bills?

To understand how much solar can help you save, you need to first make a calculation of how much you are currently spending on electricity each year.

For example, 10,400 kilowatt-hours (kWh) is the medium electricity use that is needed for a U.S. household. As of October 2018, the national average electricity rate is $0.1287 per kWh. If you multiply the two together, you will realize that an average American family spends at least $1,335 a year just on electricity.

After that, you have to put into consideration the changeable character of electricity prices and ascertain what utility rates will be in the coming years. When you are making a comparison between the cost of utility electricity with home solar, bear it in mind that the electricity rates are likely to increase annually. In few years before, there has been an increased rate of national electricity costs at approximately 2.2% per year.

When you use solar, you don’t need to be bothered about utility rate inflation, this is one of its credible advantages. There are no variable utility rates if you generate your own energy with a rooftop PV system. Your energy costs stay at a constant rate.

Because of solar’s nature as an upfront investment, costs related with a solar system are installation cost and any additional electricity costs in the cases where your panels do not offset completely 100% of your electricity use.

 What primarily determines if your system will completely offset your electricity needs is the size accuracy of your PV system. To secure that percentage, you can make a calculation of how many solar panels will be requisite for that.

Will you still pay electric bill when you’re using solar panels?

People often think that when they install solar panels, it will completely wave off electric bill. No, it doesn’t work like that. You would still receive bill from your utility if you install enough solar to completely offset your electricity use so far your property remains grid-connected. Nevertheless, this doesn’t imply that you will forever be paying money on your bill, continue reading and see why.

solar panel
Solar panel at home

There’s a policy called net metering. This policy is available almost in all states and it allows the unused energy produced by your solar panels to be forwarded to the grid as an exchange for your electric bill credits. This permits you to draw from the grid at night when you aren’t powering your solar panels because the sun is not shining. If you draw back the same amount you provided to the grid or less amount, you do not pay any extra money.

Whenever you’re given your monthly electric bill, there will be an indication on the net metering credits you used and there would be no charges for that power.

Where you might see small charges for electricity is where you might have used electricity pulled from the grid that wasn’t offset by net metering credits.

To summarize it all, installing solar panels doesn’t stop you from receiving electric bill. It is possible that the bill you receive might ask you to pay nothing but only indicate how your usage was offset by net metering credits for the month.

If you supply more electricity to the grid than you draw, there would be a roll over of your unused bill credits to the following month that you can take advantage of.

Above all, the bone of contention is that solar panels will help to drastically reduce your average monthly electric bill charges, and in some cases, there might be a total elimination of your monthly electric bill.

What amount of carbon footprint can solar panels reduce?

Money isn’t the only considerably factor for going solar, environmental improvement is also one of the vital reasons.

By installing solar, you’re consequentially making an improvement in the environment and a reduction in emissions of greenhouse gas.

There are two ways to answer the question “What amount of carbon footprint can solar panels reduce?” These are – the amount of money you can save from solar and how much CO2 you can save from being ejected into the atmosphere. There is a formula that is given by the Environmental Protection Agency to make a calculation of how diverse green practices result in reductions of carbon emissions. You may try that out.

solar carbon footprint
You can make huge savings with solar panels

Either you want to make great savings or you want to reduce carbon emissions, a solar panel system will definitely yield huge savings for homeowners. However, one factor that determines how much you save is the cost of electricity at your place of residence.

All the same, solar will be a risk-free investment with major returns if you reside in a state with middle to upper-level utility rates.