Home Solar Efficiency Series # 5 - Step 3 | Solar System Cost and Efficiency

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With a good grasp of how much energy you use, taking into consideration changes throughout the year for air conditioning in the summer and heating in the winter, you are equipped to effectively evaluate the solar panel cost and power capacity equation. Solar power as well as wind power systems for your home are a smart investment for your financial future, that takes the sting out of worries you may be having about the future of energy resources where you live.It's an important global energy security topic today and will remain important into our future.

Making the most of rebates and incentives available to you, can take the price for making these changes more doable for many. See our global incentives list to find out who you can contact to inquire about rebates and incentives for upgrading your home to solar panels and/or wind turbines. These incentives are sometimes changing from month to month, so check back often with your local and federal incentives programs. In Canada we had a federal grant increase of 25% in March of 2009, to home owners doing renewable energy retrofits.

So let's get down to solar panel power efficiency and cost. We are providing a scenario using real world numbers that include rebates and a state energy loan, to clearly illustrate that switching to renewable energy for your home is smart, can be fun and can be done within a reasonable budget.

Real-World Scenario:

Chris and his wife Alison have estimated what they use in energy per month, having averaged out their usage over the course of a year. They are wanting to significantly offset their use of gas, to power their home. Their average electricity consumption is 800 kWh's per month @ 20 cents per kWhour = making their average monthly cost for power $160.00, and total annual home power cost of $1920.00.

They live in Connecticut in the U.S. where home energy audits were passed into law in 2008, helping citizens lower their heating bills. The audit was only $75 and included a clean, tune and test of their heating system. From there they used a comprehensive solar calculator online, to quickly gain an estimated look at their projected cost for installing a solar panel system. They are eligible for a $7200 tax credit, and decided to get a State Energy Conservation Loan in the amount of 25,000, made available for residential renewable energy retrofits, with a 10 year term at 3% interest. They used other online resources to get up to speed on what was happening with renewable energy in the state and the nation at Repower America, and DSIR.

With their combined annual income at close to $90,000, they will be able to pay off their home solar panel system in 4 years. Their solar installation will save them 34% on their energy costs annually, and will continue to save them money on energy spending for years to come. They will reduce their monthly energy bill by at least $55.00 per month, and will be increasing the value of their home. The home solar system they chose, allows them to install it themselves, at a cost of $26,000. Ready Solar’s residential solar electric system, a 3000 watt system, is pre-engineered and pre-assembled, and comes with a 15 year system warranty and 25 year panel warranty.

This is one scenario, that is not a standardized example across the U.S. or any other country. It illustrates one course of action that will lower Chris and Alison's energy bills significantly. They also know that they are taking a step that will reduce their dependence on a current non-renewable energy system in their State, helping the environment and inspiring others to do the same.

We recommend asking lots of questions before purchasing a solar panel system for your home. It's important to really take your time with this process and decision to ensure you are maximizing overall cost savings. Are you getting the best deal? Do you qualify for available incentives? Do you know about all the incentives, rebates and tax breaks, immediate or ongoing, that are available for you to claim. Make a list of questions, get several quotes, then decide. You'll be glad you took your time to get it right.