Jul 5, 2009
Solar Cost – A One Time Investment?
Going green becomes more popular nowadays and one way to implement it is by installing electric solar panels on your rooftops to make electricity. The panels will give you DC voltage and in order to make it applicable for your home appliance you have to invert it to AC voltage.
To make it happen there are some solar kits that you need to purchase. These kits are determined by how would you want to have the system installed. There are three different set-ups you can choose. First is on-grid, meaning you have the solar electricity integrated with the utility grid. This is the most popular option because you need to spend less money compared to other systems.
Grid-tie is cheaper because we don’t buy batteries to bank the solar electricity. The expensive part to purchase is solar inverter only. By eliminating the batteries from our system we have save some money. Solar batteries are different from vehicle batteries and they are expensive. This option however will not give you electricity during power outages.
The second option is to have a battery backup solar inverter. With this system your solar electricity is still connected to the grid but also backed up with the battery bank. By doing so you will still have electricity during utility outages. If you vote for this system you need to purchase a solar charge controller, solar batteries and also different type of solar inverter. Now you can see why the solar cost varies greatly.
The last option is you have it off-grid. This system is normally picked up by people living in remote areas where utility lines are not available. Here you will need to purchase the solar charge controller, solar batteries and also solar inverter. Same as other options mentioned above you also need to buy other items such as wiring, terminal connections, etc. The inverter for this system is different from the other types mentioned above. You may need to backup this system with gas generator or wind turbine in case of sun outages.
Now let us see how much really they will cost you. To make a rough estimation you can think about $15K to $60K. The cost will actually depend on how far do you want to substitute your fossil powered electricity. A 100% substitution is not recommended at all because the cost will kill you.
The other factors that also contribute to the price are the quality of solar parts and installation cost. Solar inverters for example has a wide quality range and solar installation cost differs from one company to another.
If you are thinking of getting a lower price then US government has a good news for you. Having renewable energy source installed in your house will allow you to get 30% federal tax rebate followed by the local tax incentive. You also get credits from the net metering system by sending the solar electricity to the grid.
There is no need to fully go with 100% solar electricity, even starting with 15% substitution will make a difference. You can always expand your system later on.
Is it true that home solar system needs a one time investment only? The reality is some parts have shorter lifespan, i.e. batteries and solar inverters while other part such as solar panels can stand for 30 years. Most likely you will have to spend money for some parts so it would be better to have this possibility counted into your calculation.
The best way to determine your solar cost is by contacting some solar companies. They can give you great advice based on what information you feed them.
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