Going solar a great investment
While the environmental benefits of solar electricity are well
established, many homeowners are surprised to learn that solar is
also a smart financial investment. When Hollister homeowner Jean
Millerd-Low installed a 5.9 kiloWatt solar system on her home in
April of this year, she was motivated to do so for financial
reasons.
Going solar a great investment
While the environmental benefits of solar electricity are well established, many homeowners are surprised to learn that solar is also a smart financial investment. When Hollister homeowner Jean Millerd-Low installed a 5.9 kiloWatt solar system on her home in April of this year, she was motivated to do so for financial reasons.
“I’ve been wanting to do it for a long time” Millerd-Low explained. “As people get older, you want to keep your costs down. If you can control something as expensive as power, then that’s great. Also, my CPA said it was a good time to do it because of the tax benefits.”
Many homeowners who invest in solar electricity realize a positive cash flow from day one. This is because the payments to finance the system are often lower then the homeowner’s monthly electricity bill. The extra cash that is freed up by the monthly and yearly electric bill savings can be set aside for college tuitions, family vacations, or other needs.
“It just sits up there and does its thing,” said Millerd-Low, of her system. “Even when it’s cloudy it’s still working. I am beating PG&E right now. I have a credit.”
For many, the most attractive benefit of solar electricity is locking in their future electricity rates. Homeowners who opt to use solar energy protect themselves against future rate increases and lock in their cost of power at the current rate over the long run. Solar energy is also a great option for families because with a fixed cost of electricity, it helps many people plan their monthly bills.
While most homeowners opt to install a solar electric system on their roof, many homeowners in San Benito County opt to install their systems elsewhere on their property. Solar electric systems can be ground mounted or placed on a variety of different structures (e.g. barns, garages, gazebos, trellises, etc.), and can range in size from 10 panels to more than one hundred. The size of a solar electric system (measured in watts or kilowatts of energy production capability) depends on the number of solar panels. The number of panels needed is determined by the electricity usage of the home, and the amount of electricity the owner wants to offset with the system. A solar electric system can be designed to produce all of the power consumed by the home, thereby eliminating the electricity bill altogether or it can offset only a portion of the bill.
At today’s current electric rates, a typical system takes between 8-12 years to pay for itself in savings. However, as the electric rates continue to increase the payback time will also shorten significantly. The current rebate from the California Public Utilities Commission (CPUC) is $2.50/AC Watt. Rebates offset about 30% of the out-of-pocket cost. The federal tax credit for homes is set at $2,000 for residential homes. For information on California rebates, check www.consumerenergycenter.org.
In addition to the numerous financial benefits of solar, residents of San Benito County are also investing in solar due to the environmental benefits. A typical residential solar electric system is 2,400-4,000 watts. The environmental impact of this amount of energy is astounding. A solar electric system on a typical residence eliminates 8,474 pounds of carbon dioxide – the equivalent to the emissions of a car driving 9,372 miles in one year. 1.2 acres of mature trees would be needed to absorb this amount of carbon dioxide. Solar energy helps reduce global warming by offsetting carbon dioxide emissions that would have been generated from power plants.
Inspired by generous rebates offered by the government, increased popularity of green building, and PG&E’s recent rate hikes, residents of San Benito County are beginning to seek alternative solutions to the problems caused by increasing energy consumption and skyrocketing bills. With San Benito County enjoying over 300 days of sunshine, the opportunity to tap into solar energy is huge and residents are taking advantage of this proven technology.
Brandon Heiken represents the South Bay 101 Corridor division of REC Solar, the nation’s leading installer of residential and small commercial solar energy systems. For more information on solar energy and exploring your options please visit www.recsolar.com or contact them at (888) OK-SOLAR (657-6527). Brandon Heiken can be contacted directly at [email protected]
