PV Costs Less than Grid Electric – Even at Today’s Prices!
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There’s a common misconception that solar electric is unaffordable and expensive compared to traditional, fossil-fuel based electricity. That’s not true!
To fully appreciate the real affordability of grid-tied solar, we need to throw out the notion that solar should be evaluated like other household appliances, and not for the worry-free 40 year investments that they are.
PV prices have dropped by 40% or more in the last few years and are warranteed for 25 years (there is ample evidence that they perform for 40+ years). So as a reasonable comparison, the cost of a PV installation should be compared to the cost of pre-buying electricity over a minimum 25 year period.
Let’s look at an example of 5kw array for a homeowner:
|System size, in Kilowatts||5||5|
|Cost per installed W of Panels||$5.50||$5.50|
|Gross capital cost||$27,500.00||$27,500.00|
|Federal Tax Credit Amount (26% of system cost)||$8,250||$8,250|
|State Rebate Amount||$2,000||$6,000|
|Net Capital cost||$17,250.00||$13,250.00|
|Effective Cost of Electricity||Maine||New Hampshire|
|Kw/hr produced Each Year||6,750||6,750|
|Cost of Electricity, Locked in for 25 Years||$0.102 kw/hr||$0.079 kw/hr|
|Savings, if Electricity is $0.16 kw/hr and stays that way for 25 years||$9,750||$13,750|
|Savings, if Electricity is $0.16 kw/hr today and increases by 2.5% every year for the next 25 years||$20,952||$25,112|
Even taking the conservative estimate of 25 years of system performance, for someone who can take advantage of the existing incentives, the average price per delivered kw/hr from a solar system is roughly half of what a kw/hr costs from the grid today!
In an uncertain economy, clean energy may just be the most reliable investment available – contact us to learn how you can lock in your energy rate for decades and reduce your carbon footprint in the process.