Falling solar energy costs and its increasingly 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 Photovoltaic 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 Photovoltaics (PV)
PV is a process of producing electricity by transforming sunlight into direct current electricity through using semi-conductive materials which create the photovoltaic 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 and sustainable energy system. Better yet, it draws upon the sun, the earth’s most abundant and widely allocated renewable energy source. The direct transformation of sunlight into electricity takes place without toxic environmental emissions or the use of any moving parts during operation.
Influenced by advancements in engineering and technology, along with manufacturing sophistication and scale, the cost of photovoltaics has steadily gone down since the first solar cells were developed. This has made 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 taking advantage of solar PV today.
The Solar Photovoltaic 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 investment in just a few years of using solar energy instead of electric. As soon as you have your system operational, your electricity bills will only be cut down substantially from what they were prior to installation. Considering that sunshine is free, your new energy source will be continuously flowing into your home.
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 electricity because the more you use, the more you’ll be required to pay. With the right sized solar PV system, you can maximize your electricity benefits which will provide the quickest payback for your solar investment. You’ll continually receive the lowest cost electricity from your utility company because it will replace higher tier rate usage with electricity generated your PV system.
The Amortized Cost of the Solar Electricity Averages
Solar energy weighs in at costing approximately $0.09 Kilowatts per hour (kWh). This is calculated by the cost of the PV system divided by the number of kilowatts the system can produce in 25 years. This would be replacing electricity purchased at high tier price of $0.31 to $0.35 per (kWh). The Federal Government also gives a 30% tax credit for using solar energy. This means that Solar PV can save you a small fortune. These savings will cover the purchase price of your solar PV system in 5 to 8 years, depending on your electricity usage and rates.
Bottom line, solar power costs less than traditional power and traditional electricity costs are rising every year. A Solar Photovoltaic 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.