With the cost of conventional energy sources rising, many people are looking for sustainable, alternative energy sources such as solar power. While solar power is an excellent choice and very efficient at converting sunlight into electricity, it is not without its costs. There are various hardware and installation costs associated with having solar power, not to mention the cost of the fuel itself. All in all, solar power can be rather expensive. However, if you compare it to the cost of conventional energy sources, it can easily be seen how much more efficient and cost-effective it is.
The Cost of Solar Power
As previously mentioned, one of the major costs associated with solar power is the initial investment. As a rule of thumb, you will need to set aside between 20% and 30% of the total cost of solar power for this initial investment. This is to cover the cost of the equipment and installation, as well as the cost of the land itself. Once this is done, the system will start generating electricity which you can use.
The cost of energy produced by solar power also varies depending on the market rate of the day. This is also determined by a variety of factors such as the weather and time of day. On average, the peak cost of energy produced by solar power is around 11 cents per kilowatt-hour (kWh). It is usually higher in the early morning and in the afternoon, but this can range from 5 cents to 20 cents per kWh. At night, the cost is usually lower, around 6 to 8 cents per kWh.
This cost can vary greatly, however, it is a good idea to look at the cost of electricity sold by large businesses like Costco or Walmart, which purchase electricity in large quantities.
Another excellent reason to invest in solar power plants is the tax benefits. If you install a new solar power system on your property, you will receive a tax deduction for the full cost of the system. Furthermore, you will receive a tax break for any excess electricity that you sell back to the grid.
In order to receive these benefits, you will need to install an electric meter to track how much electricity you use and how much tax you pay on that electricity. Once you verify that you meet the requirements, you can apply for a tax credit with the IRS.
It is also important to take into consideration the other costs associated with solar power. Aside from the equipment and installation costs, which are already mentioned, you will need to purchase solar panels. These things are not cheap. Especially since you will generally need a large number of them to cover your roof or entire outdoor space. Furthermore, the cost of the fuel for the system also needs to be considered. While you will not necessarily need to replace fossil fuels with solar power, the cost of solar fuel is still quite high. It can range anywhere from around 12 to 15 cents per kWh, plus you will need to purchase a large amount of it to cover the electricity you need.
Another major cost that you need to consider is maintenance. Since you will be using electricity to power most of your home, you will need to purchase a good quality power generator just to be on the safe side. This is especially important if you have a gas generator, as it will need to be maintained and serviced by a professional.
When it comes to cost effectiveness, solar power is one of the best choices available. If you compare it to traditional sources, such as coal or gas power plants, it will save you a great deal of money in the long run. Furthermore, you will not be producing any harmful emissions, which makes it even more attractive.