How Much Does Solar Power Cost?

The costs of solar power are dependent on the size of the home. For a family of four in an average house, the price tag is around $30,000. While the price is steep, most look at it as an investment. Over time, it will pay itself off.

Less Pollution

For some the biggest benefit is not in the financial terms, but in that it keeps pollution down. Lowering pollution levels reduces the risk of getting sick. This in turn will keep expenses down in the long run. For some, this is the most important return this type of investment will make.

Tax Incentives

The costs of solar power are offset by tax credits. The US government has been encouraging more people to use it. One way is through energy tax credit. The 2009 tax credit is 30% (for qualified alternative energy sources). The perks vary among states. Some offer other benefits including a sales tax exemption and a property tax exemption.

These alone can reduce the expenses significantly. Assume you invest $30,000. The federal tax rebate is at 30% and the state rebate is around $4,000. The New York State Energy Research also offers a $12,000 rebate. Of the $30,000 you invested, over $25,000 would have been erased from the cost.

Recovering the Costs

For some, the costs of solar power are still somewhat high even at $5,000. This is, however, actually only one percent of its old cost during the early 1970s. Research by the government has shown that it will take half a dozen years until all the expenses are recouped.

This calculation was reached based on the average cost of the panels ($30,000). It also used the average tax rebate rate of $10,000. Assume you pay 17 watts for ordinary power and get six hours of sunlight daily. This will allow you to recover the costs in just over six years.

Other Factors to Consider

The time you recover from the costs of solar power will also be dependent on how energy efficient your residence is. To save more on power, getting energy saving lights, insulation and appliances will be needed. It is also suggested that you get these utilities prior to installing the solar panels. These are now widely available and several have proven their reliability in lowering energy cost.

The Future

The concern for the environment is forcing governments to look for other sources of power and energy. While solar power has always been around, it is only now that it is starting to get accepted into the mainstream.

As noted, the cost itself has gone down dramatically since the 1970s. With technology improving, it is expected that the expenses will be reduced even more in the coming years.

If you are interested in using it, you should get in touch with the energy department in your area. They will inform you of the benefits available in the locality.

As the facts show, the costs of solar power will eventually be paid off. Not only that, but you also get a cleaner environment in the process.

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