Solar Energy vs Electricity
Solar Energy vs Electricity
The majority of people are dependent on electricity in this day and day and. The majority of electrical appliances are powered by electricity, for both residential and commercial locations.
Solar energy is a beneficial resource for energy, and has gained in popularity as a result of its capacity to cut costs and be environmentally friendly.
There are so many investment options available and it is sometimes difficult to know if something will really help you save a lot of dollars. Cost is one of the major factors when you are deciding whether to go with solar energy instead of regular electric power.
This article will explain how solar power stacks against electricity and the motives for increasing acceptance of solar power.
Factors that affect the price of Electricity Regularly
The average residential utility rate is 12 cents per Kilowatt-hour. The average monthly electricity bill was $114 before taxes and charges. In a typical month an average household consumes approximately 911 kWh.
Although the cost of electricity utilities fluctuate a lot over the years, they have remained stable throughout. The retail residential electricity rate has been increasing by 4% in the last decade. In some regions like the Northwest The rate has risen to 40%.
The US Energy Information Administration reported that the April 2018 average electricity cost per consumer group was:
- Commercial - 10.44 Cents for each Kilowatt
- Residential Residential 12.89 Cents For Kilowatt
- Transport -9.53 Cents per kWh
- Industrial 6.58 Cents per kWh
- All Sectors from 10.23 Cents Per kWh
The{ average household’s 2018|| average household’s} cost of living has increased by 5.5% compared to 2017. The cost of living has grown by 3.0% annually over the last 10 years. The average cost for commercial services have increased by 2.5 percent, and transport averages increased by 2.3%. Industrial average electricity costs were up 0.2%. All sectors had an average rise in the cost of utilities of 0.8 percent between 2017 and 2018.
The average American residential household used 897 kWh{ per month|| of electricity per month} in 2016, and the average monthly electricity bill was $ 1112.59 after taxes and fees. The electricity bills for residential and commercial customers are typically higher than the costs for industrial customers.
It requires more electricity to distribute and requires lower voltages. Industrial consumers use more electricity and can use their electricity at higher voltages without needing to reduce it.
These factors make commercial customers to be charged a greater rate than the wholesale price of electricity. The price of regular electricity is believed to be less expensive than that of solar energy.
Every day the price of providing electricity is subject to change. Customers typically pay prices that depend on the price of electricity. The price variations are typically due to changes in electricity demand, fuel costs, and the availability of power sources. The prices are typically highest during summer, when there more demand than supply.
Solar Power: The Cost
Solar power systems can be very effective in protecting the consumer from fluctuation and spikes in electricity prices. The cost for a solar panel fell by over 75 percent between 2006 and 2014. It was about $3.25/kWh but it was only $.72/kWh. Photovoltaic (PV) solar cell prices have dropped by a factor of 100 in the last 38 years, and by 25 percent over the past 15 years.
A deficiency in polysilicon is the most important reason for a slight rise in prices between 2005 and 2008. The price for solar cells was $.30 per Watt in 2015, and a solar module was $.72 per Watt in 2015.
Solar electricity costs are extremely low following a successful installation. The relevant costs include the purchase price, the cost of the land and the installation cost. The elements that are cost-effective in a residential solar system are solar modules, design of the system and balance of the system (BOS).
This includes an inverter as well as connection devices and a bi-directional billing device. In the southwest, residential solar costs are in competition with electricity rates for residential homes with incentives.
According to the National Renewable Energy Laboratory, the typical American residential household installs a five kWh system. It is estimated to cost $2.80 per DC watt or $14,000 (2.080 x 5 000) before taxes and fees.
Commercial companies use systems that have the record of 100 megawatts or higher, however. The average cost of a fixed solar panel was $1.03 per Watt in 2017.
The current solar module price has seen a significant decrease. The global average price of modules fell by around 78 percent between 2007 and. It dropped between $3.25 per Watt to $0.72 for each Watt. The dramatic drop in the cost of polysilicon, a key component in pricing of crystalline silicon module, could be one of the reasons the prices have dropped this dramatically.
The suppliers of polysilicon made a lot of money in addition to increasing their capacities, so that there was an overwhelming surplus of polysilicon in 2010. The cost of polysilicon decreased from $400 per kilogram to just $25/kg between 2008 and 2011, which is an increase of 94%. The dramatic drop was due to:
- Improved efficiency of solar cells is a way to generate sunshine energy.
- Scale economies
- The technological advancements in manufacturing are significant.
- Module oversupply is caused by the intense competition
The unbeatable efficiency of manufacturing in other industries were possible because of the{ 23% annual|| annual 23%} solar growth rate over a few decades. There are a lot of competitors seeking large contracts which is causing prices to drop quickly.
With tax credits that apply to all levels of the system, solar panels are becoming more affordable for property owners. They can get 30% of the total cost for installing solar panels on their homes through tax credits in the year 2016.
The incentives allow you to cover all the expenses of installation and installation equipment within 10 years. Taxes on tariffs on imported solar cell imports will drop by five percent per year. This means the price remains at 15 percent through 2021. This could result in solar cells becoming even more affordable in the coming years.
The price of solar is generally much less. Solar panels are a smart option for homeowners who are planning to sell their homes in the near future. Solar panels require very little maintenance as there are no moving parts which can fail. Modern solar panels come with slimmer designs and sleek trims, which work well with traditional roofing.
Calculating the monthly savings using solar power
A solar array placed on a roof facing south with no shading would produce 1,840 kWh annually per nameplate capacity. The first year of production for a 5-kW solar system would yield (1.840 * 5.5) 9200kWh. A system degradation rate of.5% per year multiplied by 25 years will yield a net 8,050kWh annually.
This amounts to (0.875 9200) The average residential electricity price for electricity in CA was $0.125/kWh in 2017. This would translate into saving of (8050x $0.125) $1.006.25, not taking into account the future rate of inflation. The monthly savings would therefore equal $83.6 divided by ($1006.25 over 12 months).
Solar power is a cost-effective alternative if you’re struggling to cope with rising electricity prices. It can help you get rid of dependence on your local utility provider. Solar panels can still produce electricity even in the dark So don’t worry when they don’t function on sunny days.
Solar power has a higher efficiency than normal electricity and is a great option in areas with colder temperatures to save money. The size and quality of your solar system will determine how much electricity you will require. Systems that convert solar energy can transform up to 22 percent of the solar energy they generate into electricity.
This is great news when you consider the cost of energy every month. It is possible to qualify to receive a rebate if have surplus solar power.
All of the solar electricity produced by the solar power system will be free once it is installed and is paid for. This could take anywhere between 5 and 10 years, depending on where your residence is. You could save money as soon as the solar power system starts producing power if you are in a position be able to pay for it.
Solar is considerably cheaper in comparison to electricity as you can see from the points above. Companies are developing systems that provide electricity at a cheaper cost than regular electricity. Solar can be easily mounted on a roof , and it can harness the energy available. The price of electricity across the country continues to rise despite the fact that solar is cheaper.
Contact a local solar power company
Shneyder Solar will provide an estimate that is customized if you are looking to know the price of a solar system. We will help you finance your solar energy system. For more information on solar energy systems, please call our solar panel company at [number].
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