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Calculate Savings With Solar Panels

The promise of free electricity can make solar energy very tempting. But while sunlight is free, solar panels are not. As an investment solar panels can make sense to you if you live in area where electricity is expensive and sunlight abundant.

Otherwise, it may take decades to lower your energy bills come initial installation costs to compensate. Get your budget information. Take a look at your bills and find your annual kWh consumption and the cost per kilowatt hour. Ideally, you should check your bills for the full year, as your power consumption is very likely to go up and down with the seasons.

Calculate Savings With Solar Panels

However, if you don’t have your utility bills on hand, you can use average electricity consumption for house in US, which amounts to 920 kilowatt-hours per month. other piece of household information you will need is available area in your roof, as this will directly affect your potential solar panel choices. installation area must be free of obstructions like trees or nearby tall buildings, and facing south.

Get your regional information. If you did not find your cost per kW-h in your utility bills, you can find average for your state at website of US Energy Information Administration. other crucial bit of information you will need is average solar radiation for your area, as solar panels will not produce same amount of electricity in Seattle as they would in Phoenix.

You can find map for average solar radiation at Renewable Resource Data Center’s website. Customize map to reflect energy that would be captured by different installations, but when in doubt you can just select annual averages for south-facing vertical flat plates. Get information for your intended installation.

You will need to contact your installer to get specifications of solar panels that you intend to buy. Check that they can fit on your available ceiling area, and then ask about purchase and installation cost, maximum output, efficiency and expected maintenance costs. Your installer should also be able to tell you about any rebates or incentive programs available in your region. As reference, typical capacity for residential installation goes from 1 to 3 kW, at cost of approximately $8.5 per Watt or total of $8,000 to $25,500 .

Do math. To calculate kW-h produced by given installation, multiply area of panels by average solar radiation per square meter in your region. If you took data from Renewable Resource Data Center, it will be provided as average kW-h per square meter per day, so you will have to multiply it by 365 to calculate yearly production.

Multiply those by cost per kW-h in your area to get your gross savings per year, and subtract expected maintenance cost to get your net savings. Take installation cost minus rebates and incentives and divide over your yearly net savings to see how long it will take before solar panels actually pay for themselves and your investment starts paying off.

We hope this information about “How to Calculate Savings With Solar Panels” is really helpful to you as well as other information related to Solar_Energy

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How to Calculate Savings With Solar Panels

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