Falling solar energy costs and its non-competitive pricing just may be affecting the future of the local tiered electric services, even investor owned electric utilities like Pacific Gas and Electric (PG&E) that service most of northern California. Thanks to today’s Solar Photo Voltaic systems, customers have the opportunity to decide if they want to continue paying high, tiered electric bills or to go solar, taking advantage of significant savings.
About Photo Voltaics (PV)
PV is a process of producing electricity by transforming sunlight into direct current electricity by using semi-conductive materials, which present the photo voltaic effect. These systems use solar panels consisting of several solar cells to produce useable solar powered energy.
For years solar PV power generation has been, seen as a clean, sustainable energy system, one that draws upon the sun, the earth is most abundant and widely allocated renewable energy source. The direct transformation of sunlight into electricity takes place without toxic environmental emissions or the use any moving parts during operation.
Influenced by advancements in engineering and technology, along with manufacturing sophistication and scale, the cost of Photo Voltaics has steadily gone down since the first solar cells were developed, making the costs of electricity from PV even more competitive when it comes to conventional electricity sources all over the world. Today, Solar PV is the third most important renewable energy source after wind and hydro power in terms of globally established capacity with over a 100 countries use solar PV today.
The Solar Photo Voltaic system is far more than simply making a commitment to sustainable energy; it’s an investment that pays for itself because of the amount of money you’ll save on your electric bills. You can think of your investment in solar PV as a lump sum you pay for in advance that will provide a substantial return on your invest in just a few years of electricity consumption. As soon as you have your system operational, your electricity bills will only be a small portion of what they were prior to installation and considering that sunshine is free, your new energy source will be continuously flowing into your home through the roof.
Tiered Residential Utility Rates
Residential electric rates are tiered and the price at each tier varies by utility company depending on their cost. This deters people from using more and more electricity because the more you use, the more you’ll be required to pay. With the right sized solar PV system, you can maximize the benefits, which will provide the quickest payback for your solar investment because you’ll continually receive the lowest cost electricity from your utility company because it will come in at the lowest tier rate by replacing higher tier rate usage with electricity generated by the sun and your PV system.
The Amortized Cost of the Solar Electricity Averages
Approximately $0.09 (the cost of the PV system divided by the number of kilowatts the system can produce in 25 years). When you replace electricity purchased at the higher tier price of $0.31 and $0.35 with a cost of $0.09 it will save you a small fortune, a savings that will cover the purchase price of your solar PV system in 5 to 8 years, depending on how much electricity you’ll buy at the steepest price.
Bottom line, solar power costs less than traditional power and traditional electricity costs tend to rise every year. A Solar Photo Voltaic System will make it possible for you to secure low, predictable solar energy rates no matter how much traditional electricity rates go up, so you’ll be able to enjoy your savings and watch it grow over the years.