Cost of Solar Energy
The Real Solar Power Cost
What is the Real Cost of Solar Energy? Solar power cost estimates for the average household. How using cheap solar power methods can save on the overall cost of solar power at home.
The cost of solar power for your home will depend on a number of variables. Where you live, how much power your household uses, whether you buy your panels new or used, how much sun your property receives, incentive programs available to you... and so on, will all have an impact on the solar power cost at a specific location.
Additionally, you have a great deal of influence over the ultimate cost of your solar power system. By using some energy conservation tips and techniques to reduce energy needs and by adding some passive and thermal solar basics you can cut your energy requirements in half. That will have a dramatic effect on the cost of your solar power system.
The short answer to the question "what is the cost of solar energy?" is...
A Lot.
Solar power is available today (Sept. 2009) for as little as $3.86 per watt, (Evergreen Solar Panels at the Alternative Energy Store) which is $1. less than when I priced it out in 2007.
An average home in the U.S. on the 38th parallel uses 25 KWH per day or 9,125 KWH per year. Without making any changes in the way this average household uses their energy, a photovoltaic solar system would cost $97,250... YIKES!
Here's how that figure changes when you reduce your energy demands.
~ UPDATE Sept. 2009 ~
- (15 KWH) 15,000 watts per day at... $57,900
- (10 KWH) 10,000 watts per day at... $38,900
- (05 KWH) 5,000 watts per day at... $19,450
Additional costs for wiring, hardware, batteries, inverter, charge controller and installation will easily amount to $10,000. Remember, these costs are for an off grid photovoltaic system paid by cash (no interest payments) and no rebates or incentives have been applied.The real cost, after taking those variables into consideration will be less.
~ Archive May 2007 ~
The day that I checked (May 2007) the price it was 4.86 USD per watt.
At $4.86 per watt the cost of solar energy would be:
- 15 KWH (15,000 watts)... $72,900.
- 10 KWH (10,000 watts)... $48,600.
- 5 KWH (5,000 watts)... $24,300.
Currently there
Incentives
US Residents can check here for available incentive programs, which can dramatically reduce the cost of solar energy for your home.
The cost of materials and production has plagued the solar industry from the beginning.
Although raw silica (in the form of sand) is one of the most abundant materials on the planet, it takes a lot of time to grow the silicon crystals that are the heart of the solar cell. The bigger the crystal, the more time it takes and the more it affects solar power cost and supply.
Monocrystalline and Polycrystalline Cells
Monocrystalline solar cells are composed of a single (mono) large silicon wafer. Because of this the price for monocrystalline cells is higher than polycrystalline cells.
Polycrystalline solar cells are composed of many (poly) small wafers and fragments. The use of the more abundant and easier to obtain, small wafers, keeps the cost lower.
Lets do a Little Comparison Shopping.
SolarYou can reasonably expect to power your home completely with solar power, for $50,000 US dollars including the cost of new batteries every 5 years. Once installed the system will save you ALL of your power expense for 35 to 40 years.
It may take a while but after a period of 15 to 20 years, the system will have paid for itself (in energy savings) and then it begins to put money back into your pocket for as long as 20 more years. And this is without any subsidies or tax incentives.
vs Vehicle
On the other hand most of us think nothing of buying a vehicle that costs $25,000 US dollars. That vehicle will never pay for itself and at the end of 15 years will be worth next to nothing.
Rather than having saved you anything the vehicle will have cost you the initial purchase price of $25,000. plus interest, gas, oil, insurance, parking and maintenance costs of lets say $5,000 US dollars per year (over a 15 year life of the vehicle that's $75,000 US dollars).
That makes an overall cost of $100,000 US dollars for 15 years and at the end... you have nothing and start the entire process over again.
We've deliberately kept these estimates very conservative.
Thermal - The Cheap Solar Power
Hot Solar
A toasty car on a cold sunny day or a shower of warm water from a dark container left in the sun, are examples of the thermal effect of the sun.
In Africa, a friend had to wait til after midnight to shower at his work site because the water stored in the overhead tanks was too hot!
Thermal collectors (often called flat plate collectors) are inexpensive, low tech, water and air heaters that absorb heat and transfer it to water, air or a solution. These units do not make electricity they simply collect and store the heat from the sun.
A solar water heating system can reduce your utility bill by as much as one third with a relatively small initial expense. Costs are more quickly recoverable with a flat plate
system than a PV system.
PhotoVoltaic - Not-so-Cheap Solar Power
Photovoltaic systems turn the light (photo) of the sun into electricity (volts)
A higher technology and more expensive method of using the sun's energy. This is the stuff that makes ice cubes and powers the laptop.
Once a photovoltaic system is installed it can be expected to last for 30 or even 40 years with a little (very little) maintenance.
A solar panel rated at 85 watts might deliver slightly more than 85 watts for the first couple of years, eventually dropping off to generate slightly less than stated after several years of use.
Prices are declining and thin film photovoltaic technologies are reducing the cost of solar energy for some applications.
Keeping the Cost of Solar Energy Down
Step #1 ~ Cost of Solar Energy
Find practical ways to reduce your energy consumption, incorporate some passive solar concepts and add a solar power water heater for household water and swimming pool heating.Step #2 ~ Cost of Solar Energy
Determine how much energy your household uses (after you've made the changes). To do this check your power bill which will state in KWH (kilowatt hours) how much energy your household used during that billing time frame. Planning a solar power system around the months with the highest demand ensures that your household is adequately powered throughout the year.Step #3 ~ Cost of Solar Energy
Decide what kind of system you intend to install. Here are some pages that'll help Grid Tied System or Independent System or perhaps you'll want to only heat water or a swimming pool. Maybe blackout protection is all you need.Step #4 ~ Cost of Solar Energy
Determine whether there are incentive programs in your area that you can take advantage of. If you live in the U.S. check here for incentives in your state.-
Step #5 ~ Cost of Solar Energy
Find 2 reputable dealers who sell and install solar energy systems in your area. Get a quote from each for the entire job plus references.
Numerous governments, universities, research facilities, energy companies and businesses have participated in research to bring the cost of solar energy down to a more competitive level. A lot of exciting progress has been made in several different directions that promises to bring solar into the ring... soon.
Adding a photovoltaic system to your mortgage, spreads the solar power cost into bite sized chunks.
When you burn your mortgage agreement (after it's paid off of course) your solar energy system is paid for and your utility bills are non existent or dramatically reduced. And who wants to even guess what the price of non-renewable energy will be at that time?
The Alternative Energy Store has everything you need to set up a home solar power system. Solar kits for grid tied systems or panels by the pallet, and all the hardware and batteries needed for off grid sites.
Visitors to our Cost of Solar Energy page may also be interested in the following pages
Buying Used Solar Panels
Cheap Solar Power
Energy Conservation Tips and Techniques
Thin Film Photovoltaic
