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I was wondering if anyone on this forum knows about what the approximate cost of solar power is now as compared to power off the grid. I see tons of articles claiming that it is competitive, but I can't find anything that actually shows a calculation that proves that. Any Help?
I see tons of articles claiming that it is competitive,
Only when they are including the subsidies/tax breaks. The feds give you a 30% tax credit, states vary so you'll have to look it up but it's usually another 20%. There may be other incentives involved like renewable energy credits, they can be sold on the market to power distributors to meet renewable energy mandates imposed by the state.
I was wondering if anyone on this forum knows about what the approximate cost of solar power is now as compared to power off the grid. I see tons of articles claiming that it is competitive, but I can't find anything that actually shows a calculation that proves that. Any Help?
The answer is always, It depends. Here is a calculator
Only when they are including the subsidies/tax breaks. The feds give you a 30% tax credit, states vary so you'll have to look it up but it's usually another 20%. There may be other incentives involved like renewable energy credits, they can be sold on the market to power distributors to meet renewable energy mandates imposed by the state.
I am not getting any 'subsidies or tax breaks'.
Our system does not qualify for any tax credit. Our state does not provide any tax credit either.
I have no idea what a "renewable energy credit" is.
I have spoken with the three other off-grid solar / wind power home-owners in my town, none of them have had any subsidies or tax breaks.
Now, there are tax write-offs, and I use a lot of those. I have used them for itemizing taxes for 30 years.
I was wondering if anyone on this forum knows about what the approximate cost of solar power is now as compared to power off the grid. I see tons of articles claiming that it is competitive, but I can't find anything that actually shows a calculation that proves that. Any Help?
How much power do you want to generate?
Are you okay with 12VDC [like some homes in my area], or do you want 120VAC?
Some people are okay with 1,000 Watt-hours per day. I generate 4,400 watts/hour so more like 22,000 per day.
Are you thinking of net-metering? Or do you want stand-alone? Or some grid-tie variant?
Are you willing to construct the Photo-Voltaic supports yourself? Wire it up yourself?
I know people who solder individual PV cells together, and who do all of the design and wiring themselves.
Or do you want a licensed / certified / bonded contractor to do all of it, and simply hand you a bill.
Another factor to ask is how many miles are you from the nearest grid power line? What would it cost to bring grid power to your site.
And of course, in any given year, how many times do you expect to experience the grid in your town going down? If your grid normally goes down more than 30 or 50 times a year, then it may change the math for you.
You can do it for as low as $3,000. Or as one contractor quoted me, you could pay $150k for a system.
I think you all have basically answered my question. I've seen several articles claiming that solar is nearly competitive to power off the grid. My guess is, that if this was true, then there would be a lot more options available. I would think, if it was almost as cheap as power from the local power company, that you could buy kits or systems that could be assembled and set up. Apparently, that's not the case.
Plus, if people are looking for tax credits, subsidies, etc. then obviously, its not even close to parity with purchased power or the incentives wouldn't be necessary.
I think you all have basically answered my question. I've seen several articles claiming that solar is nearly competitive to power off the grid. My guess is, that if this was true, then there would be a lot more options available. I would think, if it was almost as cheap as power from the local power company, that you could buy kits or systems that could be assembled and set up. Apparently, that's not the case.
Plus, if people are looking for tax credits, subsidies, etc. then obviously, its not even close to parity with purchased power or the incentives wouldn't be necessary.
It is the case in Washington DC. Systems generate about a 20% return on investment. They pay off in 4-5 years.
I live in Arizona and just installed a solar system, 6.44 KW. I will use the 30% federal tax credit and the Arizona max $1000 tax credit. I will make my money back in approximately 6 years which works for me.
There are so many variables that go into the decision about even just installing solar let alone the system size. So much depends upon your power company, the price you pay per kwh and if your state has net metering. The other big variable is your power usage.
You would need to get specifics for all of this and then get quotes from installers in your area to figure out if it's beneficial for you or not.
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