Solar Energy vs Electricity
Solar Energy vs Electricity
The majority of people are dependent on electricity in the present day and age. The majority of electrical appliances are powered by electricity both in commercial and residential environments.
Solar energy is a favorable alternative to energy that’s gained in popularity as a result of its ability to lower costs and be environmentally friendly.
There are numerous investment options to choose from and it is sometimes difficult to determine if something will really allow you to save lots of dollars. Cost is a key factor in deciding whether you should use solar energy or regular electricity.
This article explains how solar power stacks up against electricity and the motives for increasing acceptance of solar power.
Factors that influence the cost of Electricity Regularly
Average residential utility costs are twelve cents for every Kilowatt hour. The monthly average electricity bill was $114, excluding taxes and other fees. In a typical month an average household consumes around 911 kWh.
Although the cost of electricity utilities fluctuate quite a bit over the years, they’ve maintained their stability throughout. The retail residential electricity rate has grown by 4% over the last 10 years. In certain areas like the Northwest where the rate has risen to 40%.
The US Energy Information Administration reported that the April 2018 average electricity cost per consumer group was:
- Commercial Commercial 10.44 Cents per Kilowatt
- Residential Residential 12.89 Cents Per Kilowatt
- Transportation -9.53 cents/kWh
- Industrial - 6.58 Cents per kWh
- The entire sector – 10.23 Cents Per Kilowatt
The{ average household’s 2018|| average household’s} cost of living was up 5.5 percent compared to the 2017. The cost has been increasing by 3.0 percent per year over the past 10 year. Commercial average costs were up 2.5%, while transportation averages were up by 2.3 percent. The average cost of electricity for industrial use rose by 0.2 percent. All sectors experienced an average increase in energy costs of 0.8 percent between 2017 and 2018.
The average American household consumed 897 kWh{ per month|| of electricity per month} in 2016, and the average monthly bill for electricity 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 costs more electricity to distribute and it uses less voltage. Industrial consumers use more electricity and can use their electricity at higher voltages without having to cut it down.
This makes industrial customers to pay a higher rate than the wholesale price of electricity. The cost of regular electricity is believed to be less than that of solar energy.
Every minute the cost of providing electricity fluctuates. But, consumers typically pay rates that are dependent on the electricity price. The price variations are mostly due to fluctuations in electricity demand, the cost of fuel costs and availability of generation sources. The prices are typically highest during summer when there is more demand than supply.
Solar Power: The Cost
Solar energy systems are highly effective in securing you from fluctuations and rises in electricity prices. The cost for a solar panel module decreased by more than 75 percent between 2006 and 2014. It was about $3.25/kWh, but it was just $.72/kWh. Photovoltaic (PV) solar cell rates have decreased by a factor of 100 over the past 38 years and by a factor of 25 in the last 15 years.
A shortage of polysilicon is the primary reason for a slight rise in prices between 2005 and the year 2008. The cost of a solar cell was $.30 per Watt in 2015, and the price of a solar module was $.72 per Watt in the year 2015.
Costs for solar electricity are very low after a successful installation. The main costs are the cost of the purchase, cost of the land, and the installation cost. The components that cost a residential solar system are solar modules, design of the system and the balance of the system (BOS).
The inverter, connection devices and a bi-directional billing device. The southwest is where residential solar prices match the electricity costs of residential customers following incentives.
As per the National Renewable Energy Laboratory, the average American home owner is using a 5 kWh system. The cost is on average $2.80 per DC watt or $14,000 (2.080 multiplied by 5 000) without taxes and other costs.
Commercial businesses use systems that are an impressive 100 megawatts or higher, however. The average cost of a fixed solar panel system was $1.03 per Watt in 2017.
The current solar module price has seen a dramatic drop. The global average price of modules fell by around 78 percent between 2007 and. It dropped from $3.25 per Watt to $0.72 per Watt. The significant drop in price of polysilicon which is a crucial component in all costs of crystalline silicon components, may be the main reason the prices have dropped this much.
The suppliers of polysilicon made a lot of profits in addition to increasing their capacities so that there was an enormous surplus of polysilicon in 2010. The cost of polysilicon decreased from $400/kg to around $25/kg between 2008 to 2011 which represents an increase of 94%. The dramatic drop was also due to:
- Improved efficiency of solar cells is a way to create sunshine energy.
- Scale economies
- Technology advancements in manufacturing are significant.
- Oversupply of modules is caused by the intense competition
Efficiency in manufacturing that is unmatched in other industries was achievable because of the{ 23% annual|| annual 23%} solar rate of growth over a couple of years. There are many rivals competing for large contracts, which is causing prices to fall rapidly.
With tax credits that apply for all levels solar panels are becoming more affordable for property owners. They could get 30% off the price to install solar panels in their homes as a tax credit in 2016.
These incentives make it possible to pay for all the costs of installation and equipment in 10 years. Taxes on tariffs on imported solar cell imports will decrease by five percent every year. This means that the tariff is set to remain 15% until 2021. This could lead to solar cells becoming even more affordable in the future.
The cost of going solar is typically less. Solar panels are an excellent investment for property owners who are planning to sell their homes in the near future. Solar panels require minimal maintenance because there aren’t moving parts that can fail. The latest solar panels have slimmer designs and sleek trims, which are a perfect match with traditional roofing.
Calculating the monthly savings using solar power
A solar system installed on a roof that is south-facing with no shade would generate 1,840 kWh annually , according to the nameplate capacity. The first year of production for a 5kW solar system would yield (1.840 multiplied by 5.5) 9,200kWh. A degradation rate of.5% per year multiplied over 25 years would result in a total of 8,050kWh per year.
This amounts to (0.875 9200) The average residential electricity cost for electricity in CA was $0.125/kWh in 2017. This would translate into an savings amounting to (8050x $0.125) $1.006.25, which does not take into account the future rate of inflation. The monthly savings would therefore be $83.6 multiplied into ($1006.25 over 12 months).
Solar power is a cost-effective alternative if you’re struggling to cope with the rising cost of electricity. It can help you get rid of dependence on your local utility company. Solar panels still generate electricity even in the dark Don’t be concerned if they fail to work on sunny days.
Solar power can be more effective than conventional electricity, and can be used in colder areas to reduce expenses. The size and the quality of your solar system will determine how much electricity you need. The solar power system can turn up to 22 percent of solar energy into electricity.
This is an excellent news when you consider the cost of energy each month. You could also qualify for a rebate in the event that you have surplus solar power.
All the solar power produced by your solar power system will be free after it has been installed and paid for. This can take between 5-10 years, depending on where your home is located. You could save money as soon as your solar system begins producing electricity if you’re in a position in financing it.
Solar is significantly cheaper that electricity. This is as clear as can see from the above points. Businesses are developing systems to deliver electricity at a lower cost than regular electricity. Solar can be easily mounted on a roof and harnesses an energy source that is already available. The price of electricity across the country is rising despite the fact that solar energy is more affordable.
Get in touch with a local solar power installer
Shneyder Solar can provide a customized estimate should you be looking to know the price of a solar system. We will help you finance an energy-efficient solar system. For more details on the solar power systems available, please call our solar panel company at [numbernumber.
GET YOUR FREE PROPOSAL IN A FEW EASY STEPS
Fill out the form and our sales consultant will contact you! Once you’ve had your initial consultation, you’ll begin your solar journey.
First name is required
Last name is required
Last name is required
Email is required
Email is required
Phone is required
Please enter a valid property address
Property address is required
Schedule Your Appointment
ATTACH YOUR UTILITY BILL (optional)
Some information is missing or is incorrect, please fix the issues above and resubmit.
