Solar Power System For Home: Worth The Money?

installation of solar panel systems for homes has been growing at a record pace and the cost to install solar power has decreased by 70 percent over the last decade everyone loves the idea of clean electricity and self-sufficiency but we all know most homeowners primary concern is lowering their electricity bill to save money in the last decade solar has had an annual growth rate of forty eight percent and right now the price to add solar panels to your home is the lowest it's ever been the big question everyone wants to know is how much will I save on my electricity bills if I install solar panels the exact numbers vary depending on the details of your installation if you live in a mobile home in Texas or mansion in California with three Tesla's in the garage your electricity requirements and solar savings potential are obviously going to be very different but what you should know is the federal government provides a twenty six percent tax credit on all residential solar installations until December 31st 2020 a solar installation can also be looked at as an investment and can provide a six to thirteen percent ROI the key things to note are that solar panels cost money upfront what will save you money in the long term and the average home can save between ten thousand to thirty thousand dollars over the lifetime of your solar panel system the simple answer to the question the solar panels really save you money is yes that being said how much you'll save depends on a number of factors direct hours of daily sunlight and the size and angle of your roof are very important but local electricity rates play the largest role in determining how much solar can save you equipment makes up the majority of the upfront cost of solar but permits and labor are also factored in the solar panel costs for an average-sized installation works out to around two dollars and 96 cents per watt to help you form a clearer picture of what this looks like in the real world a two kilowatt system which is a small system that would be appropriate for say a modest 1,500 square foot house with low electricity requirements would cost on average five thousand nine hundred twenty dollars and after federal tax credits four thousand three hundred eighty one dollars a large twenty five kilowatt system that you'd put on a much larger home may be something like our aforementioned California mansion would cost on average seventy four thousand dollars or fifty four thousand six hundred after tax credits the first step to understanding how much solar can save you is to calculate how much you're currently spending on electricity every year for example the average annual electricity use required for a u.s.

Household is ten thousand nine hundred seventy two kilowatt hours now you take that average usage and multiply it by the national average electricity rate which is about point one two eight four per kilowatt hour and you'll find that the typical American family is spending just over one thousand four hundred and eight dollars a year on electricity when you compare the cost of utility electricity with home solar you should keep in mind that electricity rates are constantly changing and will probably continue to increase annually over the past decade national electricity costs have increased at a rate of approximately 2.2 percent per year utility rate inflation is an added incentive for solar when you generate your own energy with a rooftop photovoltaic system you're locking in energy costs at a constant rate so that you no longer have to consider variable utility rates because of the nature of solar as an upfront investment the only costs associated with a solar system will be the cost of your installation and any added electricity costs in the event that your panels do not completely offset 100% of your electricity use whether or not your system will completely offset your electricity needs is primarily determined by how accurately you sized your system to provide a snapshot for typical bill savings from a solar installation here are 20 year solar savings estimates from an average American home that's about 2,000 square feet the price includes the federal solar Tax Credit which currently allows you to deduct twenty six percent of the cost of installing a solar energy system from your federal taxes now for the specs on our average American home we're using a system size of six kilowatts the electricity demand is ten thousand nine hundred seventy two kilowatt hours per year which is the national average we're assuming a utility rate inflation of 2.2 percent and also that the percent needs met by the solar panels is 94% and we're using the electricity rate that's a state average now we're going to run through the solar panel savings estimates over a 20-year period for the 10 most popular states for solar in Arizona you can expect to save twelve thousand five hundred ninety five dollars over a twenty year period in California eleven thousand seven hundred ninety five Colorado ten thousand seven hundred thirty Florida eleven thousand three hundred and seven Massachusetts 10550 to Maryland twelve thousand two hundred thirty nine New Jersey twelve thousand sixty two New York eleven thousand eighty five Texas twelve thousand four hundred sixty one and last but not least Washington twelve thousand nine hundred and five [Music] some people aren't sure if you still even get an electric bill with solar panels but you do unless you went completely off grid which is not a normal home installation and a topic to cover in an entirely different video a common misconception about installing solar panels is that your electric bill will go away entirely even if you install enough solar to completely offset your electricity use you'll still receive an electric bill from your utility provider as long as your property remains grid-connected but you can use net metering with net metering your monthly electricity bill is calculated both ways based on the net of your overall energy consumption and the monthly output from your solar panels if you are producing more energy than your using the utility company will actually pay you for example if your solar panels have over produced three thousand kilowatt hours on sunny days and you have consumed four thousand kilowatt hours from the grid on dark nights you will get billed for only one thousand kilowatt hours in some cases net metering policies actually pay a higher rate for the electricity that's produced from your solar panel system then what you pay to purchase electricity from the grid you still receive an electric bill when you install solar panels but in the case where you provide more electricity to the grid than you pull your utility will usually rollover your unused bill credits to the next month for you to take advantage of regardless installing solar panels will almost certainly lead to lower average monthly electric bill charges and may eliminate your monthly electric bill totally in some cases there are tools that can quickly estimate your solar potential and savings you just input your address and it will provide you detailed estimates based on your geographic location roof size and monthly electricity bill I link to a good solar calculator in the description below [Applause] solar panels are a great addition to any home they're a true renewable energy source reduce your electricity bill and provide insurance against rising power prices low maintenance costs financial incentives from the government they operate quietly with no moving parts and emit zero pollution they have a long service life and reliability in operation the guarantees given by the manufacturers for the solar panels are generally for more than 25 years of good operation the main barrier for most people is the initial cost but marginal cost drops to zero once the price of the installation is paid off as with any large purchase you should do your research a recent report by the US Department of Energy's National Renewable Energy Laboratory recommended that consumers compare as many solar options as possible to avoid paying inflated prices offered by the large installers in the solar industry using an online installer Network you can register your property and basically have contractors compete to give you the best price I included a link in the description to get competing solar quotes outside of lower electricity bills solar power systems also lower the carbon footprint of your home and can lead to potentially higher home values of course you don't need to always purchase a solar power system upfront in cash there are a number of financing options available such as solar loans and solar leases that might be a good option for you overall a solar power installation is a decision home owners rarely regret and if you live in a location with the right conditions to save you money it's kind of a no-brainer have you installed solar or are you planning on installing a system in the future let us know in the comments below if you enjoyed this video and found it helpful please like and subscribe we showcase the best cutting-edge technology including electric cars solar power sustainable energy and definitely a lot of Tesla thanks for watching and have a great day [Music] you

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