Solar Energy {vs|is compared to|Vs} Electricity
Solar Energy {vs|is compared to|Vs} Electricity
{People are almost completely|The majority of people are|We are all} dependent {on electricity in this|on electricity in the present|of electricity in this} {day|time} and {age|day and|time and}. {The majority of|A majority of|Most} electrical {systems|appliances} {are powered by electricity|run on electricity|operate on electric power}{,|} {both in commercial and residential|in both residential and commercial|for both residential and commercial} {settings|environments|locations}.
Solar energy is {a favorable|an attractive|a beneficial} {energy source that has|alternative to energy that’s|resource for energy, and has} {grown|increased|gained} in popularity {as a result|because|due to} of its {ability to reduce|capacity to cut|ability to lower} {costs and be environmentally friendly|costs and also be green|cost and help the environment}.
There are {so many investment options available|numerous investment options to choose from|numerous investment options}{, it can sometimes be| and it is sometimes| that it’s} difficult to {know|determine|decide} {if something will really|whether something can actually|what investment will actually} {help you save a lot|assist you in saving a significant amount|allow you to save lots} of {money|dollars}. Cost is {a key factor|an important factor|one of the major factors} {when deciding whether to use|when you are deciding whether to go with|in deciding whether you should use} solar {power|energy} {or regular electricity|as well as regular power|instead of regular electric power}.
This article {explains|will explain|describes} how solar power {stacks up|compares|stacks} against electricity{ and the reasons|, and what are the main reasons| and the motives} {for increasing|for the increasing|to increase the} {acceptance of solar power|acceptance of solar power}.
Factors that {Influence the Price|affect the price|influence the cost} of {Regular Electricity|regular electricity|Electricity Regularly}
The {cost|expense} of {financing, building|building, financing}{, operating, maintaining,| operating, maintaining} and upgrading power {plants,|stations,|plants} {as well as the complicated|along with the complex|and the intricate} system of {power distribution lines,|distribution lines for power,|power distribution lines} {is reflected in regular|are reflected in the regular|is evident in} electricity {prices|rates|costs}.
The equipment {used to generate|that generates|used to produce} {and transmit electricity will need|and transmit electricity will require|electricity and transmit it will require} maintenance and fuel {costs|expenses}. {Many for-profit utilities also include|A lot of for-profit utilities include|A majority of utilities that are for profit also offer} {a financial return|the possibility of a financial reward|an investment return} to {shareholders and owners in|owners and shareholders in|shareholders and owners of} the {electricity prices|price of electricity|prices for electricity}.
There are {many factors|many variables|a variety of factors} that {affect the cost|influence the price|impact the price} of electricity{, some big|, some major|. Some are major} and {some small|others small|some smaller}. These are the {main|most important|major} {factors that impact|elements that affect|aspects that influence} {your electricity costs|the cost of electricity|the price of electricity}:
- {Fuel costs|Cost of fuel} {- Power production and distribution|power production and distribution|Production and distribution of power} are {necessary|essential|required}. These {procedures call for|processes require} fuel. {Costs of fuel can occasionally|The cost of fuel may|The price of fuel can} {change, especially during periods|fluctuate, particularly during times|change, particularly during periods} of {high|large|intense} demand. {Additional fuel demand|In addition, the demand for fuel|A higher demand for fuel}{, such as for| like| like for} natural gas, {can|may|could} result from {high electricity demand|a high demand for electricity|the high demand for electricity}{, raising both| which can increase| increasing both} the {cost of producing electricity|price of electricity production} {and the cost of fuel|and the price of fuel|as well as the cost of fuel}.
- {Weather conditions – Rain and|Conditions of the weather – Rain and|Weather conditions – Rain as well as} snow are {good|excellent|great} sources of water {for hydropower generation|to generate hydropower|that can be used to create hydropower}. Wind turbines {can produce|are able to produce|can generate} {cost-effective electricity|efficient electricity|energy that is cost-effective} {when the wind speed is|in the event that wind speeds are|at times when wind conditions are} {favorable|in a favorable direction|suitable}. {However, extreme temperatures|But extreme temperature|The problem is that extreme temperatures} {can|could|may} {increase electricity demand for heating|raise the demand for electricity to heat|create more demand for electricity for heating} or cooling. This {drives up electricity prices|increases the cost of electricity|can increase the price of electricity}.
- {Transmissions and distribution systems -|Distribution and transmission systems -|Transmissions and distribution systems} The system {that transmits and distributes|that distributes and transmits|for transmitting and distributing} electricity {has|is subject to|comes with} maintenance {costs|expenses}. {These may include|This could include|They may involve} {repairs to damaged systems|repair of damaged equipment|the repair or replacement of systems damaged} {due to|caused by|as a result of} extreme weather conditions{,|} or {accidents|even accidents}.
- Regulations {- Some|Certain} states have their {own public service or utility|own utility or public service|private utility or public service} commissions{ that regulate the| to regulate|, which regulate} prices. {Others have a mixture|Other states have a mix|Some states have a mix} of {unregulated prices that producers|prices that producers do not|prices that producers are not regulated and} pay{ and regulated prices|, and the regulated prices| and regulated rates} {that are used for|which are used for|that are used to facilitate} {transmission and distribution|distribution and transmission}.
{Type|The type} of {consumer|customer}{: Industrial customers are able| Industrial customers are able| Industrial customers have the ability} to {get more electricity|use more power|consume more electricity} per hour, {so they|which means they|and therefore} {typically|generally} {pay less per|cost less for|spend less on} {kWh|Kilowatt-hour} (kilowatt-hour). This is {because delivery|due to the fact that delivery|because the delivery} {and generation costs|as well as generation expenses|cost and production costs} are {lower|less|reduced} and {can be done|are able to be completed|can be accomplished} {faster|quicker|more quickly}.
{The|Cost of Electricity in America|What is the} Cost of Electricity in America
{Average residential utility rates are|The average residential utility rate is|Average residential utility costs are} {12 cents per Kilowatt-hour|twelve cents for every Kilowatt hour|12-cents/kWh}. The {average monthly electricity|monthly average electricity|average monthly electric} bill was $114{, before| before|, excluding} taxes and {fees|other fees|charges}. {On a monthly basis|In a month-long period|In a typical month}{, an average household consumed| the average household used| an average household consumes} {approximately|around|about} 911 kWh.
{Although electricity utility bills|While electricity utility rates|Although the cost of electricity utilities} {fluctuate a lot over|fluctuate quite a bit over|vary a lot through} the years, {they have|they’ve} {remained stable|been stable|maintained their stability} {throughout|all through}. The {retail residential electricity rate|cost of electricity for residential customers|residential electricity rate} has {increased by 4% over|been increasing by 4% in|grown by 4% over} the {last 10 years|past 10 years|last decade}. In {some regions|certain regions|certain areas}{, such as| like} the Northwest{, the| where the| The} rate has {risen to|increased to|reached} 40{%| percent}.
The US Energy Information Administration reported that the {April 2018 average|average of April 2018|average April 2018} {electricity cost per consumer group|price of electricity per consumer|electric cost per consumer} was:
- Commercial {-|Commercial} 10.44 Cents {per|for each} Kilowatt
- Residential {-|Residential|–} 12.89 Cents {Per|per|For} Kilowatt
- {Transport|Transportation} -9.53 {Cents per kWh|Cents for each kWh|cents/kWh}
- {Industrial -|Industries -|Industrial} 6.58 {Cents per kWh|cents for kWh|Cents/kWh}
- {All Sectors|The entire sector|Every Sector} {-|–|from} 10.23 Cents Per {kWh|Kilowatt}
The{ average household’s 2018|| average household’s} cost of living {increased by|was up|has increased by} 5.5{% compared to| percent compared to the| percent over} 2017. {This cost|The cost of living|The cost} has {increased|been increasing|grown} by 3.0{% annually| percent annually| percent per year} over the {past 10 year|last 10 years}. {Commercial average costs|The average cost for commercial services|Costs for commercial averages} {increased by|have increased by|were up} 2.5{%, while| percent, and| percent, while} {transportation averages|transport averages|transportation costs} {increased|have increased|were up} by 2.3{%| percent}. {Industrial average electricity costs|The average cost of electricity for industrial use|Industrial average electricity prices} {increased by|were up|rose by} 0.2{%| percent}. {All sectors|Every sector|All industries} {saw an average increase|experienced an average increase|had an average rise} in {utility costs|the cost of utilities|energy costs} of 0.8 percent {between 2017 and 2018|between 2017 and 2018}.
The {average|typical} American {residential household used|household of a residential home used|household consumed} 897 kWh{ per month|| of electricity per month} in 2016{, and the|. The} average monthly {electricity bill|bill for electricity|electric bill} was{ $|} 1112.59 {before taxes and fees|without taxes and charges|after taxes and fees}. The {electricity costs|electric bills|electricity bills} for {residential and commercial|commercial and residential} customers {tend to be|are typically|are generally} {more expensive than those of|higher than the costs for|more expensive than that of} {industrial customers|industrial customers}.
It {costs more electricity|is more expensive|requires more electricity} to distribute{ and it|, and also| and} {uses|requires|makes use of} {lower voltages|less voltage}. Industrial {consumers use|customers consume|consumers consume} {more electricity and can take|more electricity and can use|greater amounts of electricity and can consume} their {electricity at higher voltages without|electricity at higher voltages , without|electric power at higher voltages without} {needing to reduce it|having to lower it|having to cut it down}.
{These factors make|These elements make|This makes}{ it possible for|} {industrial customers to pay|commercial customers to be charged|consumers in industries to purchase} a {higher|greater} {price than the wholesale price|cost than the wholesale cost|rate than the wholesale price} of electricity. The {cost|price} of regular electricity {appears|is believed} to be {lower|less|less expensive} than{ the cost for| that of|} solar energy.
Every {minute|second|day}{, the cost of supplying| the price of providing| the cost of providing} electricity {fluctuates|changes|is subject to change}. {However, customers usually|But, consumers typically|Customers typically} pay {rates that are dependent|prices that depend|prices that are contingent} on the {electricity price|price of electricity|cost of electricity}. {The differences in prices are|The price variations are|Prices vary} {generally due to variations|mostly due to fluctuations|typically due to changes} in {electricity demand, fuel|demand for electricity, fuel|electricity demand, the cost of fuel} costs{ and availability of generation|, and the availability of generation|, and the availability of power} sources. {Prices are usually highest in|The prices are typically highest during|Prices tend to be highest in} {summer,|the summer months,|summer} when there {is more demand than supply|more demand than supply|is more demand than available}.
Solar Power{:|} The Cost
Solar {energy systems can be|energy systems are|power systems can be} {extremely effective in protecting|very effective in protecting|highly effective in securing} {you from fluctuations and rises|your from price fluctuations and increases|the consumer from fluctuation and spikes} in electricity {prices|costs}. The {average price|cost|price} {of a solar panel|for a solar panel|of solar panels}{ module|} {dropped by more than|decreased by more than|fell by over} 75 {percent between 2006 and 2014|percent between 2006 and 2014}. It was {about|around|approximately} $3.25/kWh{, but| however,| but} it was{ only| just|} $.72/kWh. {Photovoltaic|The photovoltaic} (PV) solar {cell rates|cells|cell prices} have {fallen|dropped|decreased} by {a factor of 100|100 times|100 percent} {over the past|in the last|in the past} 38 years{ and|, and} by {a factor of 25|25 percent} {in the last|over the past} 15 years.
{A shortage of|The shortage of|A deficiency in} polysilicon is the {main|primary|most important} reason for {a slight rise|the slight increase|a slight increase} in {prices|the price} between 2005 and {2008|the year 2008}. The {average price of|cost of|price for} {a solar cell|solar cells} was $.30 {per Watt in 2015|per Watt in 2015}{, and| and| while} {a solar module was|the price of a solar module was|an solar module cost} $.72 {per Watt in 2015|per Watt in 2015|per Watt in the year 2015}.
{Costs for solar electricity are|The cost of solar power is|Solar electricity costs are} {very low after successful|extremely low following a successful|very low after a successful} installation. The {relevant costs include the|main costs are the|actual costs include} {purchase price, cost|purchase price, the cost|cost of the purchase, cost} of the land{ and|, and| as well as} {installation costs|the installation cost|the cost of installation}. The {cost elements of|components that cost|elements that are cost-effective in} {a residential solar system are|residential solar systems are|the residential solar system include} solar modules, {system design|design of the system} and{ the|} balance of {system|the system} (BOS).
{This includes an inverter|It includes inverters|The inverter}{, connection|, connecting| as well as connection} devices{ and a bi-directional billing|, and a bi-directional billing|, as well as a bi-directional bill} device. {In the southwest, residential solar|The southwest is where residential solar|For the Southwest, solar residential} {costs|prices} {compete with residential electricity prices|are in competition with electricity rates for residential homes|match the electricity costs of residential customers} {after|following|with} incentives.
{According to|Based on|As per} the National Renewable Energy Laboratory, the {average|typical} American {residential household|homeowner|home owner} {installs a 5|installs a five|is using a 5} kWh system. {It costs on average|It is estimated to cost|The cost is on average} $2.80 {per|for each|to install a} DC watt{ or|, or} $14,000 (2.080 {x|multiplied by|times} {5000|5 000}) {before taxes and|without taxes and other|prior to taxes and} {fees|charges|costs}.
Commercial {corporations use systems with|companies use systems that have|businesses use systems that are} {a record 100 megawatts,|the record of 100 megawatts|an impressive 100 megawatts} or {higher, however|more, but|greater, however}. The {average cost|cost|average price} {of a fixed solar|for a solar fixed|on a permanent solar} panel{ system|} was $1.03 {per Watt in 2017|per Watt in 2017}.
The {current solar module price|price of solar modules} has seen a {dramatic|drastic|significant} {drop|decrease|decline}. The {global average module price|average price for modules worldwide|global average price of modules} {dropped by approximately|decreased by|fell by around} 78{% between 2007 and 2014| percent between 2007 and 2014| percent between 2007 and}. {It fell|The price dropped|It dropped} {from|between|by 78% from} $3.25 {per Watt to|per Watt down to|for a Watt, to} $0.72 {per|for each} Watt. The {dramatic drop in the|drastic drop in|significant drop in} {cost of polysilicon, a|cost of polysilicon, which is a|price of polysilicon which is a} {key component in|important component of|crucial component in} {the overall cost|pricing|all costs} of{ crystalline|} silicon {modules, is|components, may be|module, could be} {the reason|the main reason|one of the reasons} {that prices have dropped so|that prices have fallen so|the prices have dropped this} {much|significantly|dramatically}.
The {polysilicon suppliers made lots|suppliers of polysilicon made a lot|companies that produced polysilicon made plenty} of {money|profits} {and increased their capacity|as they increased capacity|in addition to increasing their capacities}{ so| to the point|, so} that there was {an enormous|a massive|an overwhelming} {oversupply of polysilicon by|surplus of polysilicon in|excess of polysilicon by the year} {2010|the year 2010|2010}. The {polysilicon price dropped|price of polysilicon dropped|cost of polysilicon decreased} from {$400 per kilogram|$400/kg} to {$25/kg between 2008 and|just $25/kg between 2008 and|around $25/kg between 2008 to} 2011{, which is| which represents} {a drop of 94%|an increase of 94%|94% lower than the previous year.}. The {dramatic drop was also|drastic drop was|dramatic drop was} {caused by|due to}:
- {Increased efficiency in|The increased efficiency of|Improved efficiency of} solar cells {can be used|is a way|could be utilized} to {generate|produce|create} {sunshine|sunlight} energy.
- Scale economies
- {Technology advancements in manufacturing|Manufacturing technology advancements|The technological advancements in manufacturing} are {dramatic|awe-inspiring|significant.}
- {Module oversupply is caused by|Oversupply of modules is caused by|The oversupply of modules can be attributed to} {intense|the intense|fierce} competition
{Manufacturing efficiencies unmatched|Efficiency in manufacturing that is unmatched|The unbeatable efficiency of manufacturing} in other industries {was possible|was achievable|were possible} {due to|because of} the{ 23% annual|| annual 23%} solar {growth rate over a|growth rate over the course of a|rate of growth over a} {few|couple of} {decades|years}. There are {also many competitors|many rivals|a lot of competitors} {competing for large contracts,|who are competing for contracts of a large size,|seeking large contracts} {which is causing|which has caused|that is causing} {prices to drop quickly|prices to fall rapidly|the prices to fall quickly}.
{Through tax breaks that apply|Tax breaks that are applicable|With tax credits that apply} {to all levels of the system|across all levels|for all levels}{, solar panels are becoming| solar panels are becoming| solar panels are getting} {more affordable for property owners|less expensive for homeowners}. They {were allowed to|could|can} {claim|get|receive} 30% {off|of} the{ total|} {cost|price} {of installing|for installing|to install} solar panels {in|on|into} their {homes as a tax credit|residences as a tax credit|homes through tax credits} {in 2016|in the year 2016|in 2016}.
{These incentives make it possible|The incentives allow you|This incentive allows you} to {recover all costs|pay for all the costs|cover all the expenses} of installation and {equipment within|equipment in|installation equipment within} 10 years. {The tariff tax on imported|The tax rate on import|Taxes on tariffs on imported} solar cell imports {will drop|will decrease|is set to decrease} by {five percent per|5 percent each|five percent every} year. This means {that the tariff|that the tax|the price} {will remain at 15%|remains at 15 percent|is set to remain 15%} {in|until|through} 2021. This could {lead to|result in} solar cells becoming {even more|more|increasingly} affordable in the {years ahead|coming years|future}.
The {cost of going|price of|price for going} solar {is generally much|is typically|tends to be} {lower|less}. Solar panels {are a smart|are an excellent|can be a wise} {investment for property owners|option for homeowners|investment for homeowners} who {plan|are planning|intend} to sell their {homes|houses|home} in the {future|near future}. Solar panels require {very little|minimal|little} maintenance {as there are no|since there aren’t any|because there aren’t} moving parts {which can|that could|that can} fail. {The latest solar panels have|New solar panels feature|Modern solar panels come with} slimmer {profiles|profile|designs} and sleek trims{, which| that} {blend well|are a perfect match|work well} with traditional {roofs|roofing}.
Calculating {monthly savings with|savings per month using|the monthly savings using} solar power
A solar {system|panel|array} {mounted on a south-facing roof|placed on a roof facing south|installed on a roof that is south-facing} {with no shading would produce|without shading will produce|with no shade would generate} 1,840 kWh {annually per|per year, per|annually , according to the} nameplate capacity. The {first|initial} year of {production for a 5kW|output for a 5kW|production for a 5-kW} solar {system will|array will|system would} {be|yield|result in} (1.840 {x|multiplied by|*} 5.5) {9,200kWh|9.200 kWh|9200kWh}. A{ system|} degradation rate of.5{%| percent} per year multiplied {by 25 years would|by 25 years will|over 25 years would} {yield a net 8,050kWh annually|result in a total of 8,050kWh per year|yield a net of 8,050kWh each year}.
This {is equivalent|amounts|would be equivalent} to (0.875{ x|} 9200) The average {residential electricity price|cost of electricity for residential homes|residential electricity cost} {in|for electricity in|within} CA was $0.125/kWh {in 2017|in 2017}. This {would result in|could result in|would translate into} {savings of|saving of|an savings amounting to} (8050x $0.125) $1.006.25, {not taking into account|without taking into consideration|which does not take into account} {future|the possibility of|the future rate of} inflation. {The monthly savings would therefore|Thus, the monthly savings would|So, monthly savings would} {be|amount to|equal} $83.6 {divided|multiplied|per month divided} {by|into|in} ($1006.25 {over 12 months|for 12 months|in 12 month time}).
Solar power is {a cost-effective|an affordable|a low-cost} {option if you’re struggling|alternative if you’re struggling to cope|option for those struggling} with {rising electricity prices|the rising cost of electricity|the increasing cost of electricity}. {You can get rid of|It can help you get rid of|You can eliminate} {dependence|the dependence|the need to rely} on {your local utility company|the local utility company|your local utility provider}. Solar panels {can still produce|still generate|are still able to generate} {energy in cloudy conditions|energy even in the cloudy weather|electricity even in the dark}{, so don’t be alarmed| Don’t be concerned| So don’t worry} {if they fail to|when they don’t|even if they do not} {work on sunny days|perform on sunny days|function on sunny days}.
Solar {power|energy} {is more efficient than regular|can be more effective than conventional|has a higher efficiency than normal} electricity{ and|, and} {can be used|can be utilized|is a great option} in {colder areas|areas that are colder|areas with colder temperatures} to {save money|reduce costs|reduce expenses}. The size and {quality|the quality} of your solar {system|panel} will determine {how much electricity|the amount of electricity|the amount of power} you {need|require|will require}. {Solar power systems can convert|Systems that convert solar energy can transform|The solar power system can turn} {up to|as much as} 22{%| percent} of {their solar energy|the solar energy they generate|solar energy} into electricity.
This is {great news|a great thing|an excellent news} {when you consider|considering|when you think about} {the amount you spend on|how much you pay for|the cost of} {electricity|electric power|energy} {each|every} month. {You may also be eligible|You could also qualify|It is possible to qualify} {for a rebate if you|to receive a rebate if|for a rebate in the event that you} have {excess|surplus} solar power.
{All of the solar electricity|The solar energy|All the solar power} {generated|produced} by {your|the} solar power system {will be free|will be completely free|is free} {once it is|after it has been|when it is} installed and {paid for|purchased|is paid for}. {This can take between 5-10|It can take anywhere from 5 to 10|This could take anywhere between 5 and 10} years{ depending on where your|, depending on where your| depending on where the} {home is located|home is situated|residence is}. {You can|It is possible to|You could} save money {as soon as|from the moment|when} {your solar energy system starts|your solar system begins|the solar power system starts} producing {power if you are|electricity if you’re|power if} {able|in a position|financially able} {to finance|in financing|be able to pay for} it.
Solar is {significantly cheaper|considerably cheaper|much less expensive} {than electricity, as you|in comparison to electricity as you|that electricity. This is as clear as}{ can|} {see from the above points|observe from the previous points|see from the points above}. {Companies are creating systems to|Businesses are developing systems to|Companies are developing systems that} {deliver electricity at a|provide electricity at a|offer electricity at a much} {lower cost|cheaper cost|lower price} than {regular electricity|electricity that is used regularly}. Solar {can be easily mounted|panels can be installed|panels are easily erected} on {a roof and harnesses|the roof and taps|a roof , and it can harness} {a resource already in existence|an energy source that is already available|the energy available}. The {cost of electricity in|price of electricity in|price of electricity across} the {country continues to rise|United States continues to increase|country is rising}{, despite the fact that| despite the fact that| despite the fact} solar {is cheaper|power is less expensive|energy is more affordable}.
{Get in touch with|Contact} {a local solar power installer|an installer of solar power in your area.|a local solar power company}
[xfield_company] {will provide|will give you|can provide} {a customized estimate|an estimate that is customized|an estimate tailored to your needs} {if you are|for those who are|should you be} {interested in the cost|looking to know the price|interested in the costs} of {a solar installation|solar installations|a solar system}. We {can help you finance|can assist you in financing|will help you finance} {your solar energy system|the solar power system you want to install|an energy-efficient solar system}. For more {information about|information on|details on} {solar energy systems|the solar power systems available|Solar energy}, {call|contact|please call} our solar panel {company|business} at [number{]|number|at [number]}.