How much does solar cost?

WELL, IT DEPENDS

The cost of installing solar depends on a number of factors including the state you live, the solar incentives you’re eligible for, the equipment you install, and how much energy you consume on average. Over the past 5 years, the cost of solar has dropped by 20%. In most cases, it is now more costly to NOT go solar.

The better question is...

can you afford to not go solar?

The question we get all the time is “how much does solar cost.”  While this is of course an important question, the better question is “what’s the cost of NOT going solar?” Just like buying a house, a solar energy system is a long-term investment. So, while the upfront cost is important, the cost of doing nothing (continuing to rent your energy from the utility company) might shock you. Calculating your cost of doing nothing will give you a more accurate financial picture and help you make the best decision on whether or not to install solar. In most cases, your solar energy system will pay for itself in 8-12 years. Since systems are warrantied to last at least 25 years, going solar is often a no brainer once you see your exact ROI!

(Average Monthly Electric Bill) X (12 Months) X (25 Years) = Your Cost of Doing Nothing

1. On average, what’s your monthly electric bill (you can either add up a year’s worth of bills and divide by 12 or simply make an estimate between the summer and winter months’ average.)

2. Multiply your average monthly electric bill (answer to question 1) by 12. This is your average annual cost for “renting” electricity from those dirty, coal-burning power plants.

3. Multiply your average annual cost for electricity (answer to question 2) by 25. This is how much you will pay for electricity over the next 25 years if you do nothing.

4. Keep in mind this calculation doesn’t include rate increases that your utility company is likely to impose in the future. It’s impossible to know  when or how much they will increase your costs.

When you go solar, you're locking in your future cost for energy, avoiding all future energy rate increases, and likely getting a nice ROI within 8-12 years. All while using clean, renewable energy that increases property value!

Example Cost of NOT Installing Solar

If you’re like many Americans, you’ve probably seen a recent increase in your energy rates. When you don’t have solar panels, you’re essentially renting all your energy from the utility company, always susceptible to sudden rate increases. And those increases will just keep coming year after year. However, you have the power to put an end to it all right now by choosing to install your very own solar energy system!

When you go solar, you get true energy independence by standardizing your monthly energy costs and even having the opportunity to sell some of that energy back to the power companies! This chart shows an example of what your total energy costs would be over the next 25 years (if you were to continue renting your energy from the utility companies and experience a modest 3% annual rate increase). 

You can make a precise calculation of your cost of not going solar by looking at your average annual energy costs. 

Once you get your total solar installation cost, compare it to what your cost would be if you chose not to install solar. Chances are you’ll see that the system is going to pay for itself! It’s a no-brainer to install solar now and join the millions of other Americans who have gained their energy independence!

Now that you know your cost of doing nothing

let's find your initial cost for solar energy

Calculating Your Solar System Initial Cost

1. Determine Your System Size Needs

2. Multiply System Size by Price Per Watt

3. Deduct All Credits, Rebates, & Incentives

Solar energy system sizes are measured in the amount kilowatt hours (kWh) they can produce. 1kW is equal to 1000 watts. As you may suspect, higher kWh systems are able to produce more power per hour, but also require more hardware (panels, inverters, racking) to achieve this higher production. To determine the solar system size that is able to offset your total energy consumption follow these 5 simple steps:

1. Look back at your energy bills over the past 12 months (each statement should tell you your monthly kW usage).

 

2. Take that annual total and divide by 12 to get your average monthly usage.

 

3. Divide that number that 30.5 to get your average daily usage.

 

4. Divide that number by the average daily sunlight hours for your region. This would be your proposed system size at 100% efficiency.

 

5. To account for variables, derate factor for an 85% efficient system. This is your final proposed system size.

Keep in mind that offsetting your average energy consumption is not the only option you have when it comes to installing solar. In fact, simply offsetting your energy usage may not be what’s financially best for you in the long-run. Depending on your goals for installing solar, it may be more beneficial for you to install a system that is somewhat smaller or larger than your average usage. A smaller system can help offset just a portion of your electricity bill,  and you can get the rest of what you need from your utility company. This is a great option for folks who don’t have the funds for a system that exactly matches their usage and it still results in more fixed, predictable, and lower monthly energy costs. A system that’s larger than your monthly usage may make sense if you live in a region with renewable energy credits, which allow you to earn money for the excess energy you produce.

Get a FREE solar consultation now!

FIRE THE POWER COMPANY! YOU COULD PAY LESS FOR ENERGY.

MOXIE is one of the largest solar installation companies in the country. We’ll work with you to create a complete solar system that is affordable, sustainable and dependable.