Solar Energy Vs Electricity
Solar Energy Vs Electricity
We are all dependent of electricity in this time and day and. A majority of electrical appliances operate on electric power for both residential and commercial environments.
Solar energy is a favorable alternative to energy that’s increased in popularity because of its ability to reduce costs and be environmentally friendly.
There are numerous investment options to choose from and it is sometimes difficult to determine if something will really allow you to save lots of money. Cost is a key factor when you are deciding whether to go with solar energy or regular electricity.
This article describes how solar power stacks up against electricity, and what are the main reasons for increasing acceptance of solar power.
Factors that affect the price of regular electricity
The expense of financing, building, operating, maintaining, and upgrading power plants as well as the complicated system of power distribution lines, is evident in electricity prices.
The equipment used to generate and transmit electricity will need maintenance and fuel costs. A majority of utilities that are for profit also offer the possibility of a financial reward to shareholders and owners of the price of electricity.
There are many variables that affect the cost of electricity, some major and some small. These are the main elements that affect the cost of electricity:
- Fuel costs Production and distribution of power are necessary. These processes require fuel. The price of fuel can change, particularly during periods of high demand. A higher demand for fuel like natural gas, can result from the high demand for electricity which can increase the price of electricity production and the cost of fuel.
- Weather conditions – Rain and snow are great sources of water that can be used to create hydropower. Wind turbines can produce cost-effective electricity when the wind speed is favorable. But extreme temperature can increase electricity demand for heating or cooling. This increases the cost of electricity.
- Transmissions and distribution systems The system that transmits and distributes electricity has maintenance costs. They may involve the repair or replacement of systems damaged as a result of extreme weather conditions or even accidents.
- Regulations - Some states have their own utility or public service commissions, which regulate prices. Other states have a mix of prices that producers do not pay and regulated rates which are used for distribution and transmission.
The type of customer Industrial customers are able to consume more electricity per hour, so they typically spend less on Kilowatt-hour (kilowatt-hour). This is due to the fact that delivery and generation costs are reduced and can be accomplished faster.
Cost of Electricity in America Cost of Electricity in America
The average residential utility rate is twelve cents for every Kilowatt hour. The monthly average electricity bill was $114, excluding taxes and fees. In a month-long period, an average household consumed around 911 kWh.
Although electricity utility bills fluctuate a lot over the years, they’ve maintained their stability throughout. The residential electricity rate has grown by 4% over the past 10 years. In certain regions like the Northwest The rate has reached 40 percent.
The US Energy Information Administration reported that the average April 2018 electricity cost per consumer group was:
- Commercial Commercial 10.44 Cents for each Kilowatt
- Residential Residential 12.89 Cents For Kilowatt
- Transport -9.53 Cents per kWh
- Industries - 6.58 Cents per kWh
- Every Sector – 10.23 Cents Per kWh
The average household’s 2018 cost of living increased by 5.5% compared to 2017. The cost has grown by 3.0 percent annually over the past 10 year. Costs for commercial averages were up 2.5%, while transportation costs have increased by 2.3 percent. The average cost of electricity for industrial use were up 0.2 percent. All sectors saw an average increase in energy costs of 0.8 percent between 2017 and 2018.
The average American household of a residential home used 897 kWh in 2016, and the average monthly bill for electricity was $ 1112.59 before taxes and fees. The electricity costs for commercial and residential customers are generally higher than the costs for industrial customers.
It costs more electricity to distribute, and also uses less voltage. Industrial consumers use greater amounts of electricity and can consume their electricity at higher voltages , without having to cut it down.
This makes consumers in industries to purchase a greater price than the wholesale price of electricity. The cost of regular electricity appears to be lower than the cost for solar energy.
Every day the cost of providing electricity is subject to change. However, customers usually pay prices that are contingent on the electricity price. The differences in prices are generally due to variations in demand for electricity, fuel costs and availability of generation sources. Prices tend to be highest in the summer months, when there more demand than supply.
Solar Power: The Cost
Solar energy systems are highly effective in securing your from price fluctuations and increases in electricity prices. The cost for a solar panel module decreased by more than 75 percent between 2006 and 2014. It was approximately $3.25/kWh, but it was only $.72/kWh. The photovoltaic (PV) solar cells have decreased by 100 times over the past 38 years, and by a factor of 25 over the past 15 years.
A shortage of polysilicon is the most important reason for a slight increase in the price between 2005 and 2008. The average price of solar cells was $.30 per Watt in 2015, and the price of a solar module was $.72 per Watt in 2015.
The cost of solar power is extremely low following a successful installation. The relevant costs include the purchase price, the cost of the land as well as installation costs. The components that cost the residential solar system include solar modules, system design and balance of the system (BOS).
This includes an inverter as well as connection devices, and a bi-directional billing device. The southwest is where residential solar costs are in competition with electricity rates for residential homes after incentives.
Based on the National Renewable Energy Laboratory, the average American home owner installs a 5 kWh system. It costs on average $2.80 per DC watt, or $14,000 (2.080 multiplied by 5000) without taxes and other costs.
Commercial companies use systems that have an impressive 100 megawatts or greater, however. The average price for a solar fixed panel was $1.03 per Watt in 2017.
The price of solar modules has seen a significant drop. The global average price of modules decreased by 78 percent between 2007 and. The price dropped between $3.25 per Watt to $0.72 for each Watt. The drastic drop in price of polysilicon which is a crucial component in all costs of crystalline silicon module, could be the main reason that prices have fallen so significantly.
The suppliers of polysilicon made a lot of money as they increased capacity to the point that there was an overwhelming oversupply of polysilicon by the year 2010. The polysilicon price dropped from $400/kg to $25/kg between 2008 and 2011 which represents a drop of 94%. The dramatic drop was also due to:
- The increased efficiency of solar cells could be utilized to generate sunlight energy.
- Scale economies
- The technological advancements in manufacturing are dramatic
- Module oversupply is caused by intense competition
Manufacturing efficiencies unmatched in other industries were possible due to the solar growth rate over a couple of decades. There are a lot of competitors competing for large contracts, which has caused prices to fall rapidly.
Through tax breaks that apply for all levels solar panels are getting less expensive for homeowners. They can get 30% of the total cost to install solar panels in their residences as a tax credit in 2016.
This incentive allows you to pay for all the costs of installation and equipment in 10 years. Taxes on tariffs on imported solar cell imports will decrease by 5 percent each year. This means that the tax is set to remain 15% through 2021. This could lead to solar cells becoming increasingly affordable in the future.
The price of solar is generally much lower. Solar panels are a smart investment for homeowners who intend to sell their homes in the future. Solar panels require little maintenance as there are no moving parts which can fail. The latest solar panels have slimmer designs and sleek trims that blend well with traditional roofs.
Calculating savings per month using solar power
A solar panel mounted on a south-facing roof with no shading would produce 1,840 kWh annually per nameplate capacity. The initial year of production for a 5kW solar array will yield (1.840 x 5.5) 9200kWh. A degradation rate of.5 percent per year multiplied over 25 years would result in a total of 8,050kWh per year.
This amounts to (0.875 9200) The average residential electricity price within CA was $0.125/kWh in 2017. This would result in savings of (8050x $0.125) $1.006.25, which does not take into account the future rate of inflation. So, monthly savings would amount to $83.6 multiplied into ($1006.25 for 12 months).
Solar power is a low-cost alternative if you’re struggling to cope with the increasing cost of electricity. It can help you get rid of the need to rely on your local utility provider. Solar panels are still able to generate electricity even in the dark, so don’t be alarmed even if they do not work on sunny days.
Solar energy has a higher efficiency than normal electricity, and can be utilized in areas with colder temperatures to reduce costs. The size and the quality of your solar system will determine how much electricity you require. The solar power system can turn as much as 22 percent of the solar energy they generate into electricity.
This is an excellent news when you consider the amount you spend on electric power each month. It is possible to qualify to receive a rebate if have excess solar power.
The solar energy produced by your solar power system will be completely free after it has been installed and purchased. This could take anywhere between 5 and 10 years, depending on where your home is located. You can save money as soon as the solar power system starts producing power if you are in a position be able to pay for it.
Solar is much less expensive that electricity. This is as clear as observe from the previous points. Businesses are developing systems to deliver electricity at a lower cost than electricity that is used regularly. Solar panels are easily erected on the roof and taps the energy available. The cost of electricity in the United States continues to increase despite the fact that solar power is less expensive.
Get in touch with an installer of solar power in your area.
LA Solar Group will provide an estimate that is customized if you are looking to know the price of a solar installation. We can help you finance the solar power system you want to install. For more details on Solar energy, call our solar panel business at [numberat [number].