Economics
of Solar Power
The cost of a photovoltaic (PV) system will vary depending
on the system's size, equipment options and labor costs. Generally,
the price for a system can be estimated at $8-11/Watt. In
other words, a 1-kW (1000-Watt) system would cost between
$8,000 and $11,000 to purchase and install. A typical home
installation is between 1-6 kW, with newer homes generally
increasing the size of their PV capacity.
There are a number of ways to reduce this cost. Many states
and even some municipalities offer rebates to encourage more
homeowners to go solar. For example, the rebates in New Jersey
can reduce the price of a system by as much as 70% depending
on the size. Significant rebates are also available to commercial
installations.
Additionally, your electric bills will be lower each month
if you are creating some of your own electricity. With net
metering, excess electricity generated may be sold back to
the utility, which would further lower your electricity bills.
Having a PV system installed may also make you more conscious
of energy conservation and encourage the use of energy-efficient
appliances.
Finally, special mortgages are available through some institutions
to help people finance adding solar energy to their house.
Many states do not include solar systems in the value of the
house for calculation of property tax. However, to a prospective
home purchaser, a well-designed, well-functioning PV system
certainly adds significant value to the home.
For more details on rebates, net metering, grants, loans
and other financial incentives available on a federal and
a state-by-state basis, please visit www.dsireusa.org.
For more information on Energy Efficient Mortgages, please
visit FCIC
- Energy Efficient Mortgage Homeowners Guide.
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