Home Solar Electricity: Here’s the Approximate Cost
Is solar power expensive to build? A decade ago, it was not affordable.. The high cost of installation and materials was the main barrier to its adoption at residential level. At present however, with the significant gains in solar panel efficiency and advances in production technology, the simple Residential Solar System is within the reach of the average homeow
Let’s take a typical home with proposed solar installation features as an example for cost computation.
- It is an energy efficient home with 3 bedrooms and a monthly electricity bill of around $ 200.
- A simple Grid-Tied Residential Solar System ( no battery back up) will be installed. This is designed to reduce electricity consumption by at least 60%.
- The System (1.5 kilowatt) will consist of 15 solar panels, (100 watts per panel), inverter, electronics, wiring and mounting structures.
Now let’s do the math.
Installation and materials
15 solar panels at $ 200 each (60% of total cost) $ 3,000
Mounts, rack wiring, electronics, etc. (15%) 750
Inverter (10%) 500
Installation (15) 750
Total Cost $ 5,000
Government incentives
Federal tax credit (30% of total installation cost) $ 1,500
State tax rebate (varies from state to state) 500
Total government incentives (at least 40% of
total installation cost) $ 2,000
Summary of computation
Total installation and material cost $ 5,000
Less: Total government incentives $ 2,000
Net installation and material cost $ 3,000
The rule of the thumb:
1.For computing total installation and material cost
a) 60% for the solar panels
b) 40% for the inverter mounts electronics, wiring, etc.
2. For computing the net installation and material cost (after government incentives)
a) Total installation and material cost less 40%
The size of the Residential Solar System is mainly dependent on the electricity needs of the home. The higher the energy needs, the more expensive the System becomes because more solar panels and accessories are needed. This explains the reason for making the home energy efficient.
With the monthly savings of $ 120 (60% of $ 200), and the net installation and material cost in the amount of $ 3,000 the System will pay for itself in a little over a year (25months). This is a short pay off period. After this – free electricity. The computations are not exact figures but are given to show affordability.
Join the thousands who are enjoying their own home solar electricity source. You can build one with a DIY Solar Energy Kit today.
About the Author
Cinto Deverde is an advocate of renewable energy. Having graduated from the University of the Philippines with Biological Science degree he had been involved in promoting solar power. He writes to encourage solar energy adoption in homes. He believes that prospective solar energy users must be better informed and fully prepared when they build their own Home Solar System.
Tags: Energyeffecienthome, Federaltaxcredit, Governmentincentives, Residentialsolarsystem, Solarinstallation, Solarpanel, Soloarpower, Staterebate
