Thinking About Installing a Solar System?
If you’re considering installing a solar system, remember that this decision is both significant and long‐term. Whether your aim is to reduce your carbon footprint or to lower your electricity costs, it’s important to weigh all your options and research every detail before investing.
Key Considerations
The decision to install a solar system is not one to be taken lightly. Keep in mind that:
- The purpose of your investment (environmental benefits vs. financial savings) affects system size, cost, and payback period.
- A simple grid-tied system can help reduce your carbon footprint—but if your goal is to reduce electricity costs, note that such systems typically lack emergency backup power. Even with full sunshine during a utility outage, these systems shut down as a safety measure.
Financial Benefits
Your monthly savings depend on your consumption patterns and local electricity rates. In an ideal scenario, the best financial outcome is realized when you consume most of the solar energy you produce. Below are two formulas to help estimate the range of potential benefits:
Formula #1: Estimated Maximum Monthly Benefit
For example, with:
- Base Rate = $0.125
- Fuel Charge = $0.105
- System Size = 1 kW
Calculation: (0.125 + 0.105) x 1 x 6 x 30 = $41.30/month per kW.
Formula #2: Estimated Minimum Monthly Benefit
Using the same values, for a 1 kW system:
Calculation: 0.105 x 1 x 6 x 30 = $18.90/month.
Note: These estimates do not include system losses, weather variability, and other factors. A 15% reduction in these best-case values is typically expected.
Estimated Financial Benefit Range by System Size
| System Size | Min Monthly Benefit | Max Monthly Benefit |
|---|---|---|
| 1 KW | $16.07 | $35.11 |
| 3 KW | $48.20 | $105.32 |
| 5 KW | $80.33 | $175.53 |
| 10 KW | $160.65 | $351.05 |
| 15 KW | $240.98 | $526.58 |
| 20 KW | $321.30 | $702.10 |
*Values are based on an average base rate of $0.125/kWh and a fuel charge of $0.105/kWh. Actual benefits will vary based on weather and installation specifics.
Quality Is Key
When it comes to solar installations, quality should never be compromised. Here are some tips:
- Ensure that your installer honors manufacturer warranties—and include their warranty on workmanship in the contract.
- Quality solar panels generally come with warranties lasting 15–20 years, while inverters are typically warrantied for 5–10 years (with potential extensions available).
- Register all key components immediately, so you’re covered in the event of any manufacturer issues.
- Read and fully understand your warranties—don’t rely solely on your installer’s word.
Conclusion
Investing in a solar energy system is one of the most significant decisions you may ever make. Weigh the financial benefits against the quality, reliability, and maintenance aspects of the system. Taking the time to research and choose the right installer could save you from future headaches—and even buyer’s remorse.
We hope this guide has helped you to make a more informed decision as you plan your journey toward sustainable energy.