Control your electric costs: Apart from being environmentally friendly, solar electricity can reduce your electricity bill to a large extent. This is the primary reason why more and more people are opting for solar electricity these days. The amount of money that you will be able to save will depend on the amount of energy that your solar system is generating. If you have a solar panel system installed in your house, you will draw power at a lower-priced rate tier from the utility grid. Your electricity savings will depend on the money you would have paid if you had traditional electricity.
Prevent yourself from rising electricity costs: Your electricity bills take a huge space in your monthly budget. Fossil fuels such as coal, oil and natural gas are susceptible to unpredictable and unstable foreign markets. Therefore, the rate of traditional coal-powered electricity is steadily rising always. If you switch to solar electricity, you can prevent yourself from rising electricity costs. You can be sure of predictable and fixed electricity rates for years if you opt for solar electricity.
Calculating Energy Cost Savings for Net Metered PV System
You can calculate the production of annual electricity and electricity bill savings for a home that has a grid-connected solar electric system with the net-metering arrangement.
Determine the size of the PV system in kilowatts (kW). It will range from 1 to 5 kW. This value is denoted by “kW of PV” in the equation that is mentioned below.
Select the energy production factor from the given map, on the basis of the geographical location of your house. The energy production factor is denoted by “kWh/kW-year” in the following equation:
Electricity production from the PV system= (kW of PV) x (kWh/kW-year) =kWh/year
Your annual electric bill savings can be calculated by using the following equation. You must keep in mind that the residential rate will be in dollars per kWh.
For example $0.10/kWh is the input of the rate of 10 cents per kWh.
Electric Bill Savings= (kWh per year) x (Residential Rate) =$/year
Divide the final number that you get in the above equation by 12 to determine your monthly electric bill savings.
Increase in property value
The value of your property will increase drastically when you install a solar power system in your house. It will be a bonus if there is a decrease in the operating expense of managing your house. When you will put your house up for sale, you will see that the price of your house will be higher. As a result, you can sell your house for a huge profit that can lower down your capital gains taxes. So, if you install a solar power system in your house, you can save plenty of dollars on your electric bills while you are living in the house and later you can sell the house at a higher price.
Decrease in overhead expenses
Your overhead expenses will decrease drastically when you install solar panels on the room of your house or office. However, the kit needs to be mounted properly. Solar panels have a long life span of 20-30 years. If they are maintained properly, their life span can increase to 40 years. They will save you from the costs of frequent maintenance and nuisance.