Cheap solar energy has motivated a lot of homeowners and businesses to consider using a renewable energy source. Prices of solar panels have been dropping for the last decade and now it seems that solar energy might even become cheaper than gas.
However, as any other energy source, its price and availability is not the same on every location across the U.S. We will try to discuss what makes solar energy cheap and how you can compare its price to other energy sources.
The solar industry is booming and that brings prices down in a lot of different ways. Increased demand, leads to increased production of panels and increased production leads to competition between producers. When you have a competitive market, you can always expect a product to flourish.
Panels have already become cheaper, more efficient and more durable. Each of these traits leads to cheaper solar energy. Lower prices of panels and increased efficiency means that you have to initially invest a smaller amount of money. Increased durability, on the other hand, means that you have more years to turn your initial investment into profit.
Comparing solar energy is not as simply as some want to present it. To truly be able to compare your solar energy to grid electricity or gas, you have to work out your solar rates. Your solar rates are:
(total monetary investment) / (produced kwh over the lifetime of the system)
An important factor here is your solar equipment warranty. The calculations are done only for the warranty period as there are no unexpected expenses that the owner has to cover. Calculating how many kilowatts you can produce on your property and what the total cost of the system will be, is the next step. These calculations can be very confusing and frustrating, so let Luminext's consultants do the work for you.
Breaking even is dependent on where you live and how much sun you actually get. It can be as fast as five years or as long as nine or ten. Regardless of how long it takes to break even, you will still have plenty of time to profit from your solar installation.
In most cases, you can pay off your investment faster if you schedule energy demanding tasks while you produce the most electricity. The dynamic of grid-connected solutions relies on purchasing and selling energy from and to the grid, but you mostly profit by using the energy you produced yourself.
The electricity you produce it sold to the grid at a lower price than the one you pay to purchase the same quantity. Running all energy demanding appliances during peak production hours will save you the difference between the selling and purchase price. Businesses that operate strictly during the day can profit the most as their energy consumption is usually considerably lower after work hours.
The south has an advantage when it comes to solar energy. There are more sunny days the closer you get to the Equator and that means that your panels will produce more kilowatts per year. As we said before, getting more kilowatts with the same initial investment makes your cheap solar energy even cheaper. For more information, you can always contact one of our friendly Luminext consultants.