It’s 2019 and concerns for CO2 emissions and climate change are on a lot of peoples’ minds. For most people though, this still needs to be balanced with affordability and price. Solar power in the US now offsets more than 73 million metric tons of CO2 emissions annually (the equivalent of taking 15.6 million vehicles off the road). Installation of home solar panels is at its highest level of popularity right now, and is showing no signs of slowing down. Other than just for being a clean renewable energy source, a big reason for the increase in solar systems being installed by more households is the dramatic cost reduction that’s taken place over the last decade. Here’s some information on why it’s a good idea to have solar panels installed this year.
What is a Household Solar System?
Installing home solar systems can be confusing, so let’s familiarize ourselves with what exactly a solar system is. Home solar systems are called photovoltaic solar, or “PV” for short. A solar PV system gets its name from its conversion of light (photons) to electricity (voltage). This is called the PV effect, and in more detail, the solar PV system allows photons to knock electrons free from atoms and this creates electricity. It is this electricity that will flow through your house, powering your lights and fulfil all your other electrical needs.
Reasons to Install a Solar PV System
There are a variety of reasons to install a solar system at your house, but finding the right time can be difficult for people. Solar panels’ falling costs have given many people a reason to go ahead and make the purchase, while convincing others to wait, convinced that the prices will continue to fall for a long time to come. While this may be true, there are other costs associated with not installing solar panels. Things like current electricity costs, and government tax credits and rebates, are all things that should be considered and by using the sum of these considerations, you will be able to see the opportunity cost of not installing a solar system sooner. Not to mention the benefit of adding more green energy to our electricity grids.
Generally speaking, every year electricity costs are rising, and your current and future utility bills should be taken into consideration when comparing how much a solar PV system’s price will drop in the next few years. For example, in the United States, the average cost of a solar system has been declining by about $150 per year, while the average home in the US spends about $1200 on electricity. If you install a solar PV system that provides 100% of your electricity that’s $1200 saved this year minus the probable $150 decrease in price if you wait a year.
There is a strong likelihood of financial incentives for solar systems being reduced as they gain in popularity. Government rebates and tax credits will reduce as the price for solar systems decline and they become more and more of a regular means of electricity. This is also true of renewable energy programs that incentivize the production of excess solar electricity by buying it off of household producers. As home solar system popularity increases, the benefits of these programs will likely decrease. This can make it a much better idea to install sooner than later and reap the benefit of extra income from a home solar system.
Lastly, if you’re not sure whether or not you’re going to be staying in your house long enough to benefit from installing solar panels, you should know that solar panels often add a significant amount of value to your home. With all of these things considered, hopefully, you will be looking into solar system options for your home soon. Please visit us at Rikur Energy for all your solar PV systems needs!