With the rising rates of inflation and pollution, many homemakers are exploring different ways to restructure their home electricity systems and make them more economical in the long term. The ever-rising costs of traditional energy sources and the widespread availability of alternative options have made renewable energy like solar energy the new green trend. In this article, we’ll look at whether solar power is worth the hype.
The Average Price of Installing a Solar Power System
The cost of installing a solar system or even a solar generator varies depending on factors such as size, location, and type. Below, we’ve gathered an estimated range that might help you decide.
Based on the size or model, a solar panel system can cost anywhere between $3,500 and $35,000. A low energy-efficient model such as polycrystalline solar panels can cost between $0.90 to $1 per watt. In contrast, a more energy-efficient model like monocrystalline panels costs $1 to $1.5 per watt.
Although the maintenance cost of a solar power system is meager, installation charges are high and will make up most of your solar power expenses. This will depend heavily on the location, as areas farther from the equator garner less sunshine and cost more. A safe estimate would be to place the cost between $15,000 and $20,000.
Does Solar Power Save You Money?
While shifting to solar energy may seem costly, you can actually save money with solar power in the long run. After the installation costs are recovered, your solar panels create a natural electricity source that reduces the dependency on your fuel-driven electricity supply. In fact, if the size of your solar panel system is adequate to support the entire household, the electricity bill could shrink to nothing.
To understand precisely how much a solar power system can benefit you, you need to calculate how much money you’re currently spending on electricity. An average Australian pays approximately $411.80 quarterly for electricity.
Once the upfront cost of the solar system is gradually regained, solar power can save the money you would spend on electricity bills. You can observe a return on investment within a few years as the system practically pays for itself. Most homes start receiving utility bills with a negative balance, meaning that you could get a refund from the electricity provider or even sell them the extra credit.
If net metering is allowed in your area, you could use the extra balance to attain additional electricity at a future date. For instance, if you use the air conditioner continuously during the summer and the solar electricity produced is insufficient, you could credit your balance in exchange for extra power.
Lastly, stay updated on the energy-related laws in your area, as the state might offer incentives like tax cuts or grants for individuals to move towards more green energy sources.
Endnote
The decision to completely uplift your energy system is a hefty one. If you have the cash or savings to make such an investment, installing a solar power system will prove significantly beneficial. However, if you need to take out a loan, the cost will increase exponentially. Ultimately, numerous factors must be considered, making the process unique for everybody. It’s recommended to consult a professional who can help you determine the total cost of a solar power system.
