SOLAR ENERGY COSTS- A REAL LIFE INTERVIEW

I get questions every day about Solar Energy. I love Solar Energy! It is although...a little bit confusing on how it works and what it can and can't do. I did a short interview with a client of mine, Dallin, who wanted to put solar panels on his remodeled home. Here are the interview basics regarding costs:

Dallin: "How much does it cost to put a solar system on a house about 2900 sq ft?"

Kate: " If you want the entire home to run off of solar energy... because you can have just one floor run off solar if you want, it would cost around $25,000.oo retail for the entire home."

Dallin: " Are there any incentives or grants available to help off-set costs, that seems really expensive?"

Kate: " Yes! There are both state and federal grants which are incentives that you don't have to pay back. These incentives were just extended, they were going to expire at the end of 2008 but they will now be available for 8 more years. Taking advantage of these incentives can save you around $16,000.00."

Dallin: " Wow, that is more than I would have guessed. How long does it take to install a solar system?"

Kate: "About 3-5 days. Most companies don't warehouse hundreds of solar panels, but we can get the exact solar panels and products you will need from our local distributors."

Dallin: " I wonder what the pay-off will be for something like this. I mean, when will it pay itself off?"

Kate: " Good question. Lets consider the following: "

Example of 3.3 KW residential rooftop mounted grid tied net metered system
Produces 4861 Kilowatt Hours per year
Up front cost: $25,744
State tax incentive: -$2,000
Max. $2,000 $23,744
Federal Tax Incentive: -30% ($7,123)
$16,621

Benefits and SAVINGS
Increase in property value: $7,690 - $10,450
1st year utility savings: $388 - $523
Monthly utility savings: $32 - $45
20 year Return on Investment: 123%
Green house gas saved per year: 3.64 tons
(information provided by Mark Staker at www.sunlightsolar.pro)

Dallin: " I like it! How does Solar compare to other forms of energy like wind or geothermal?"

Kate: " Another great question for another great blog! Please allow me to share more about the pros and cons of Solar, Wind and Geothermal in the next entry...So stay tuned!!"