The Cost of Solar Energy System

Solar energy is free but the tools that will enable you to harness this free energy are not.

If you are planning to install a solar energy system right at your home and would like to know how much it would cost, there are 3 things you need to consider:

First, the cost depends on how much energy your household requires. More energy you require means more solar panels and higher cost of installation. The good thing is, the technology to harness the power of the sun is relatively cheaper than it was several years ago.

Second, the government is offering a rebate to those who will switch to alternative form of energy. That means, the government will shoulder a portion of the total cost of the system.

Third, you can get tax credits when you switch to solar energy system. The amount of tax rebate depends from state to state but the range can go from $1000 to $2000.

All these affect the overall cost of your installation.

A photovoltaic system can cost roughly at $8000 to $10000 per 1kW system. This equates to $8 to $10 per Watt. An average American household with 3 bedrooms requires at least 1.5kW to as much as 3kW. Thus, installation can cost from $14000 to $30000, before rebates and tax credits.

Government rebate varies from state to state. As a reference, an average California household that requires 1.5kW system can get as much as $4200 rebate (1.5kW= 1500 watts x $2.80 per watt = $4200).

A household that requires 3kW system can get as much as $8400 (3kW= 3000 watts x $2.80 per watt = $8400).

Before, tax credit goes as much as 30% but it is lowered to 7.5% of system cost after rebate.

So an average household with 1.5kW system can get $735 ($14000 - $4200 x 7.5% = $735) worth of tax credit while the 3kW system can get $1620 ($30000 - $8400 x 7.5% = $1620) worth of tax credit.

Example A: 1.5kW system

Cost of solar electric system: $14000
Less rebate: $4200
Less tax credit: $735

Cost of the system after rebate and tax credit: $9065

Example B: 3kW system

Cost of solar electric system: $30000
Less rebate: $8400
Less tax credit: $1620

Cost of the system after rebate and tax credit: $19980

Again, these are rough estimates just to give you an idea of the cost of installing solar energy system. They do not represent real figures.

Top tips:

Energy independent home has higher resale value and is more preferred by home buyers. So, if you are planning to sell your home in several years, installing solar energy system does not only provide substantial saving on electric bill, it also is a good home improvement option.

If you want to finance the cost of your solar energy installation, include it in your mortgage.

If you want to reduce your electricity load, switch to energy efficient appliances. Buy electric appliances with ENERGY STAR seal.

Low energy requirement means lower installation cost.

Residents of areas with higher electricity rate can benefit most on solar energy system.

If you can’t afford the photovoltaic system, you can install solar hot water system that costs roughly from $2000 to $4000.

Solar energy is best for houses that are located far from the existing power lines.

The Future Of Generating Energy For Home

Solar energy for residential houses is nothing new. It has just been relegated to the background in lieu of rising cost of real estate; newer more advanced building materials, design and the limitation of resources.

Since man started building homes, sunlight played a major influence in the design. In fact, even in the more advanced urban planning method of the Ancient Chinese and Greeks, the orientation of the buildings is as much as possible directed towards where it could capture the most sunlight.

The ancients might not be as intellectually sophisticated then to use catch phrases as passive solar and thermal mass but when they build, they were building in compact proportion, employing overhangs, producing insulations and building in manners that direct the airflow within the structure and producing well lit, well ventilated spaces using the relative position of the sun to the orientation of their structures.

Lately, as the conventional sources of energy became more expensive, homeowners were once again turning to the sun for energy requirements.

Since the 1950’s, harnessing the sun’s rays has been developing and today the solar cell technology has achieved very efficient levels that modern (so-called green house) designs apply the sun’s power to provide energy for the home.

While solar energy is free, the device that will convert it to run our appliances is not. To provide solar energy for the home, solar cells called photovoltaic made from semi-conducting materials, are grouped into modules. These solar panels are mounted on rooftops, yards or open spaces where it can capture the maximum amount of sunlight.

Whenever possible, the panels will be installed facing south to get the most out of the sunlight but tracking systems are also used to follow the direction of the sun. The solar panels collect the energy from the sunlight. The process basically is that when the panels are exposed to sunlight, the electrons are separated form the atoms. This movement of the electrons creates electricity.

To store power, pumps are often used - circulating water in the cells. The water goes into a storage tank where the power is stored, ready for use. Sometimes, the use of gravity is employed if it will just the same store the heated water in to the tank.

In spite of all the development in solar energy though, the use of this technology is not enough to provide power to the whole house. The best method so far can only fulfill about 80% of a households power needs. The employment of solar energy for the home will still require the use of the conventional power distribution method.

Powering the homes by solar means will still, for a while be augmented by a local power distribution agency. To many, this is already a good starting point. Homeowners that feel that the high cost of powering their houses through solar power, is justified when compared to the price that is now being paid for conventional electrification method where horrendous amounts of CO2 are being dumped into the atmosphere just to generate a pitiful amount of electricity.

However, due in part to the rising costs of energy, the technology for solar energy has been undergoing rapid phases of development. Experts are confident that within five years, powering the home through the solar method will be made widely available for those who prefer it as its sole energy source.

The Popularity of Solar Energy Use

The fact is, the 350,000,000 terawatts of power available from the sun is so huge that an exposure to a full sun in only 15 minutes will be enough to generate the world’s energy requirement

Compare that with energy that is generated by nuclear and fossil fuel. Presently, the available data for fossil and nuclear fuel is 10,800,000 terawatts which we all know to be non renewable.

To produce electricity, utility companies burn fossil fuels that translate to 1.3 pounds of carbon dioxide to produce 1kw of electrical power. This unwanted CO2 emissions are dumped into the atmosphere. This then translates into each typical home being accountable yearly for 22,000 pounds of CO2 emissions.

The harnessing of the sun’s rays is clean and safe. It produces no emissions and it is practical and may in the years ahead, prove very economical. In the United States, only 0.1% of power that is generated is solar energy driven. So what are the obstacles?

According to the Wall Street Journal (in an article that was released in its August 2008 issue), there are groups, backed by political groups that are lobbying against the putting up of transmission lines for solar power. The construction of distribution lines for solar energy is also being blocked by environmental activists that restrict the delivering of solar energy to those who want it in their homes.

Another obstacle is that the power grid in the United States which was designed more than 100 years ago is now so congested in many regions. To deliver the solar power to consumers, scientists and engineers will have to come out with another cost efficient plan to transfer huge amounts of energy from one location to another.

Solar panels are considered expensive. Although a home increases its value by folds when solar powered, the costs still could be prohibitive to most that unless the non silicon flexible solar panels that are now being developed are released for market consumption, powering homes through solar energy could still be very limited.

Other forms of rewards to avoid fossil fuel use should still be effectively placed. The 30% tax cut to projected cost previously awarded will be more attractive if other federal credits are included to encourage further investments.

The global warming issue that has been brought to the papers is a recurrent subject of talk shows and remains to be a good news item. Also, the too unstable pump prices, should and for most part, already be a good incentive to use this alternative source of energy.

However, effective solar energy transmission to homes will remain to be very hard unless these obstacles are breached. Assuming that these obstacles are solved today, it will still take some 10 years to convert 20% of American homes into solar energy users. Meanwhile, solar panels on individual homes remain to be the most viable alternative.

The good part to solar energy quest is that technology is advancing very rapidly. Nano technology for solar power is being developed and may be available in five years time. Other breakthroughs in cell designs are also being developed that could, in the next few years, be a cost-effective way of generating energy without having to rely anymore on fossil and nuclear power.

Solar Energy - This Commodity Is Not For Sale

If anything good came out during the recent increases of the fuel oil prices, it is that once again, there is a merry interest in alternative sources of energy. Even when pump prices has been decreasing like nothing we have seen before, the uproar created and the pain it did to business will have a good chance of sticking. The desire for alternative sources of energy is on the forefront and may it stay there for good - as it should.

Extracting oil from crops is a good idea; the downside is that food supplies could be dramatically reduced. Wind power is another excellent thing except for the many buts that wind power generation have.

If costs is the main objection to solar power generation that should be the least of worries.

The installation of solar panels is until today, considered a specialized job. Like any commodity in the market, when the demand is high but the supply is limited, the cost increase. As more and more homes clamor for alternative sources of energy, better technology and more labor is drawn to the job that market forces could take place and result into much lowered prices. This though is still in the future.

Today the reality is the instability and the unpredictability of pump prices. But even if it does provide stable and predictable price movement, solar energy is free and it is inexhaustible.

While the technology of tapping out this resource is not, homes that are solar powered are getting back dividends in terms of higher appraisal for their homes, confidence in not being surprised by power shortage and outage, not being dependent on the fluctuation in power prices and the definite advantage of having provided a better environment solution.

Today, the typical ways at tapping this resource usually are:

•Through a Heliostat – this are focusing collectors composed of mirrors that are aimed at the sun to collect the energy. The temperature that heliostats could provide reaches more that 4,000 degrees centigrade. This high temperature is sufficient for use even for furnaces.

•Through Flat Plate Collectors – employ a system of pipes. The water inside the pipes becomes heated and is ideal for heating purposes like schools, homes swimming pools, offices etc.

•Through Solar Distillation – instead of heat, this provides water. The mechanics is similar to the processes of plate collectors except that this is generally used to steam salt water. To do this, tanks and ducts are usually installed in surfaces that receive a good sun. Through the heat, the salt water turns into steam and when the steam condenses, the water is collected for regular use.

•Through photovoltaic Cells – These are the most common type of collecting solar energy characterized by solar panels installed in rooftops and other flat surfaces that there is a good sun, converting the power collected into electricity.

Unlike any products, whether refined or manufactured, the processing of solar energy do not need additional costs of energy to power it up. It is energy generating by itself. Except maybe for regular inspection and replacement of parts (when it employs a mechanical device), the tapping of solar energy is virtually maintenance free. Once installed, it could be used for as long as needed for the amount of energy, (depending on the capacity of the unit), which the owner requires.