Solar Energy Vs Electricity
Solar Energy Vs Electricity
We are all dependent on electricity in this day and day and. The majority of electrical systems run on electricity, both in commercial and residential locations.
Solar energy is an attractive alternative to energy that’s grown in popularity because of its capacity to cut costs and also be green.
There are numerous investment options, it can sometimes be difficult to know if something will really allow you to save lots of dollars. Cost is an important factor when deciding whether to use solar power as well as regular power.
This article explains how solar power stacks against electricity and the motives to increase the acceptance of solar power.
Factors that affect the price of Electricity Regularly
The average residential utility rate is twelve cents for every Kilowatt hour. The average monthly electric bill was $114, excluding taxes and fees. On a monthly basis the average household used approximately 911 kWh.
Although electricity utility bills vary a lot through the years, they’ve maintained their stability throughout. The cost of electricity for residential customers has grown by 4% over the last 10 years. In some regions like the Northwest, the rate has reached 40%.
The US Energy Information Administration reported that the average of April 2018 price of electricity per consumer was:
- Commercial Commercial 10.44 Cents per Kilowatt
- Residential Residential 12.89 Cents per Kilowatt
- Transportation -9.53 Cents for each 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 increased by 5.5 percent over 2017. The cost of living has increased by 3.0 percent per year over the last 10 years. Costs for commercial averages increased by 2.5 percent, while transportation costs have increased by 2.3%. The average cost of electricity for industrial use increased by 0.2 percent. Every sector had an average rise in the cost of utilities of 0.8 percent between 2017 and 2018.
The typical American household of a residential home used 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 electric bills for residential and commercial customers are generally more expensive than those of industrial customers.
It is more expensive to distribute and requires lower voltages. Industrial consumers consume more electricity and can use their electricity at higher voltages without needing to reduce it.
These elements make commercial customers to be charged a higher cost than the wholesale cost of electricity. The price of regular electricity appears to be less expensive than that of solar energy.
Every minute the price of providing electricity fluctuates. Customers typically pay prices that are contingent on the price of electricity. The price variations are generally due to variations in demand for electricity, fuel costs, and the availability of generation sources. Prices are usually highest in summer when there more demand than supply.
Solar Power The Cost
Solar power systems can be extremely effective in protecting you from fluctuations and rises in electricity costs. The cost of solar panels module dropped by more than 75 percent between 2006 and 2014. It was around $3.25/kWh, but it was $.72/kWh. The photovoltaic (PV) solar cells have dropped by 100 percent in the past 38 years, and by a factor of 25 in the last 15 years.
A deficiency in polysilicon is the most important reason for a slight increase in prices between 2005 and the year 2008. The cost of a solar cell was $.30 per Watt in 2015 while an solar module cost $.72 per Watt in 2015.
Solar electricity costs are extremely low following a successful installation. The main costs are the purchase price, cost of the land as well as the cost of installation. The cost elements of the residential solar system include solar modules, design of the system and the balance of system (BOS).
This includes an inverter, connecting devices, and a bi-directional billing device. In the southwest, residential solar prices compete with residential electricity prices with incentives.
According to the National Renewable Energy Laboratory, the typical American home owner installs a 5 kWh system. The cost is on average $2.80 for each DC watt or $14,000 (2.080 x 5000) without taxes and other fees.
Commercial companies use systems that have a record 100 megawatts, or greater, however. The average cost for a solar fixed panel was $1.03 per Watt in 2017.
The current solar module price has seen a dramatic drop. The average price for modules worldwide dropped by approximately 78 percent between 2007 and 2014. It dropped between $3.25 per Watt to $0.72 for each Watt. The significant drop in price of polysilicon which is a crucial component in the overall cost of crystalline silicon module, could be the reason that prices have fallen so much.
The polysilicon suppliers made lots of money as they increased capacity, so that there was an enormous excess of polysilicon by the year 2010. The cost of polysilicon decreased from $400/kg to $25/kg between 2008 and 2011, which is an increase of 94%. The dramatic drop was also caused by:
- The increased efficiency of solar cells is a way to generate sunlight 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 was achievable due to the{ 23% annual|| annual 23%} solar growth rate over the course of a few years. There are a lot of competitors who are competing for contracts of a large size, which is causing prices to drop quickly.
With tax credits that apply across all levels solar panels are getting more affordable for property owners. They were allowed to claim 30% off the total cost of installing solar panels in their homes through tax credits in 2016.
This incentive allows you to pay for all the costs of installation and installation equipment within 10 years. Taxes on tariffs on imported solar cell imports is set to decrease by five percent every year. This means that the tax will remain at 15% in 2021. This could result in solar cells becoming increasingly affordable in the future.
The cost of going solar tends to be less. Solar panels are an excellent option for homeowners who intend to sell their homes in the near future. Solar panels require very little maintenance as there are no moving parts that can fail. Modern solar panels come with slimmer profiles and sleek trims, which blend well with traditional roofing.
Calculating savings per month using solar power
A solar system placed on a roof facing south with no shade would generate 1,840 kWh annually , according to the nameplate capacity. The first year of output for a 5kW solar system will result in (1.840 multiplied by 5.5) 9200kWh. A degradation rate of.5% per year multiplied by 25 years would yield a net of 8,050kWh each year.
This amounts to (0.875 x 9200) The average cost of electricity for residential homes within CA was $0.125/kWh in 2017. This could result in savings of (8050x $0.125) $1.006.25, not taking into account the possibility of inflation. Thus, the monthly savings would equal $83.6 divided in ($1006.25 for 12 months).
Solar power is a cost-effective option if you’re struggling with the increasing cost of electricity. You can eliminate the need to rely on your local utility provider. Solar panels can still produce energy even in the cloudy weather Don’t be concerned if they fail to work on sunny days.
Solar power has a higher efficiency than normal electricity and is a great option in colder areas to reduce expenses. The size and quality of your solar panel will determine how much electricity you need. Solar power systems can convert up to 22 percent of the solar energy they generate into electricity.
This is great news when you consider the amount you spend on electric power each month. It is possible to qualify for a rebate if you have surplus solar power.
The solar energy produced by the solar power system will be free when it is installed and purchased. It can take anywhere from 5 to 10 years depending on where your residence is. You could save money when the solar power system starts producing electricity if you’re financially able to finance it.
Solar is significantly cheaper than electricity, as you can see from the points above. Companies are developing systems that offer electricity at a much cheaper cost than regular electricity. Solar panels are easily erected on the roof and taps an energy source that is already available. The cost of electricity in the country is rising despite the fact that solar energy is more affordable.
Contact an installer of solar power in your area.
Shneyder Solar can provide a customized estimate should you be interested in the cost of solar installations. We will help you finance the solar power system you want to install. For more information about Solar energy, please call our solar panel business at [number].
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