Solar Basics: Top 5 Reasons to Install a Solar System on Your Home

Why Install a Home Solar Energy System? Solar panels or PV's (photovoltaic cells) offer a clean, easy, and affordable way to power your home. They also lower your power bills while adding value to your home. All that and reducing your CO2 emissions by about 35%...that's good stuff!

Solar Basics: Contents

Top 5 reasons to consider solar energy.
How much does an average residential solar system cost?
Is solar power for my home a good investment?
Is my home and location suitable for solar power?
Who are the major manufacturers of solar equipment?
I'm going solar! How do I get started?

Top 5 reasons to consider solar energy:

1. Increase the value of your home.

According to the National Appraisal Institute (Appraisal Journal — Oct. 1999), your home's value increases $20 for every $1 reduction in annual utility bills. An average solar system could increase your home's value by $17,520 and, after rebates and incentives, costs less than that amount to purchase. We like that math. For more check out: Real Goods Solar : Today's Solar Economics

2. Lower your energy bills.

Electricity is billed by the kilowatt-hour, the electricity needed to keep 10 100-watt light bulbs burning for one hour. Typical residences and small businesses use 500 kilowatt-hours a month. For homeowners paying more than $75 in monthly electric bills, tax-deductible monthly loan payments for financed solar systems are often lower than the electric bill. An typical solar system can reduce your electric bill from $92 a month to $11 a month. When you factor in payments on the system itself, return on investment averages 9%, better than many other investments! Read more at: A Quick Estimate on how much you can save with solar power.

3. Lock in your electric rate and hedge against utility price increases.

• Prices of solar energy are falling: In 1978, the price of Solar was over $300 per watt or more than $6 per kWh (kilowatt-hour). Today for example, with State of California incentives, the $6 per kWh cost has come down to around $0.12/kWh, (a 98% drop).
• While cost (and demand) for electricity is rising: Based on the May Consumer Price Index Summary, charges for energy services are rising at a 6.8% annual rate thus far in 2007 (the cost of electricity has gone up an average of 6.7% a year since 1970). According to the Annual Energy Outlook 2007, electricity demand in the residential sector is projected to grow by 39 percent from 2005 to 2030.
• Estimated average costs of electricity for a 3kW solar system over a 30 year period is about $0.12 per kWh. As of January 2007 the baseline electricity rates of a local utility were also about $0.12 per kWh. Since a solar system has no moving parts and minimal maintenance you're essentially locking in current electricity prices now for the life of your system, an average of 30 years. Hmmm…same electricity price 30 years from now? Let's think about that…
  

4. Feel great for significantly reducing your environmental footprint.

Electricity accounts for an average of 6 tons of CO2 emissions per American household per year. Since, the average American produces an estimated 20 tons of CO2 a year this one decision could reduce your footprint by up to 35%! Take that to your next cocktail party.

5. Solar Energy is clean, renewable and reliable.

The earth receives enough solar energy each day to power every home and business on the planet. Coupled with the fact that solar panels are made of silicon (which comes from sand – got a bit of that lying around) solar energy uses abundant and renewable resources. Plus, producing solar power does not emit any harmful toxins or pollutants. Depending on your system, you can reduce (or eliminate) your home's dependence on the grid, particularly during brown outs or black outs.