We often get asked the benefits of transitioning to solar power over traditional sources. Usually the final verdict comes down to the outlay cost vs. long-term savings. With an abundance of companies offering low interest credit, a 30% federal tax rebate and a growing concern about Climate Change, is now the right time to act?
First of all let us check out what the average home spends on energy each month:
| AL | $142.55 | IL | $89.63 | MT | $94.75 | RI | $105.76 |
| AK | $127.83 | IN | $114.04 | NE | $104.96 | SC | $140.80 |
| AZ | $128.40 | IA | $102.55 | NV | $102.29 | SD | $115.06 |
| AR | $105.64 | KS | $114.65 | NH | $114.95 | TN | $123.30 |
| CA | $101.49 | KY | $114.15 | NJ | $102.38 | TX | $122.47 |
| CO | $82.47 | LA | $115.54 | NM | $79.16 | UT | $81.65 |
| CT | $139.97 | ME | $87.21 | NY | $103.22 | VT | $95.02 |
| DE | $121.73 | MD | $131.16 | NC | $113.98 | VA | $124.54 |
| DC | $96.52 | MA | $116.86 | ND | $109.38 | WA | $98.78 |
| FL | $126.44 | MI | $97.41 | OH | $106.13 | WV | $119.30 |
| GA | $126.38 | MN | $97.58 | OK | $110.27 | WI | $94.67 |
| HI | $149.33 | MS | $125.38 | OR | $103.26 | WY | $97.10 |
| ID | $100.38 | MO | $115.60 | PA | $114.48 | US | $111.67 |
Table 1 – average cost of electricity supply per state
What type of system should you install? If your home has a decent exposure to sunlight, there are 2 options you can take with different advantages.
The most common is to install a system that sends excess power back into the grid during the day when you have low requirements (net metering). You will receive a credit from the utility company that is redeemed when the solar is offline i.e. at night. This option is cheaper but the off peak and credit pricing are set by the utility. As of January 2019, 30 states offered net metering.
The second option is to install a battery system with your Solar Panels that stores the power for night or during cloudy periods. This takes you completely offline from power utilities. Not all utilities offer net metering so this might be your only option.
If you want to transition to a completely sustainable system may also want to look at the cost to replace your gas heating & cooking with electric alternatives.
The average yearly hours of sunlight varies by state. This will impact how many panels you require to install (as well as your consumption). Your solar installation company will advise for your location but the state averages below are a guide.
| AL | 2641 | IL | 2567 | MT | 2698 | RI | 2606 |
| AK | 2061 | IN | 2440 | NE | 2762 | SC | 2826 |
| AZ | 3806 | IA | 2691 | NV | 3646 | SD | 2947 |
| AR | 2771 | KS | 2922 | NH | 2519 | TN | 2510 |
| CA | 3055 | KY | 2514 | NJ | 2499 | TX | 2850 |
| CO | 3204 | LA | 2649 | NM | 3415 | UT | 3029 |
| CT | 2585 | ME | 2513 | NY | 2120 | VT | 2295 |
| DE | 2570 | MD | 2582 | NC | 2651 | VA | 2829 |
| DC | 2580 | MA | 2634 | ND | 2738 | WA | 2170 |
| FL | 2927 | MI | 2392 | OH | 2183 | WV | 2175 |
| GA | 2986 | MN | 2711 | OK | 3089 | WI | 2428 |
| HI | 2520 | MS | 2720 | OR | 2341 | WY | 3073 |
| ID | 2993 | MO | 2690 | PA | 2614 | US | 2700 |
Table 2 – average hours of sunlight per state (year)
The installed cost per sq.ft of a solar system varies by state. Higher efficient systems will cost more. Here is an estimate of what a system would cost based on the average household use and yearly sunlight for your state. This is a net metering system (battery storage can cost an additional $10,000) on a conservative price of $7 per Watt. We have excluded the 30% tax rebate from the federal government that would provide savings.
| AL | $12,250 | IL | $7,000 | MT | $8,750 | RI | $7,000 |
| AK | $7,000 | IN | $10,500 | NE | $10,500 | SC | $10,500 |
| AZ | $10,500 | IA | $8,750 | NV | $8,750 | SD | $10,500 |
| AR | $10,500 | KS | $8,750 | NH | $7,000 | TN | $12,250 |
| CA | $7,000 | KY | $10,500 | NJ | $7,000 | TX | $12,250 |
| CO | $7,000 | LA | $12,250 | NM | $7,000 | UT | $8,750 |
| CT | $7,000 | ME | $5,250 | NY | $7,000 | VT | $5,250 |
| DE | $8,750 | MD | $10,500 | NC | $10,500 | VA | $10,500 |
| DC | $8,750 | MA | $7,000 | ND | $10,500 | WA | $10,500 |
| FL | $10,500 | MI | $7,000 | OH | $8,750 | WV | $10,500 |
| GA | $10,500 | MN | $8,750 | OK | $10,500 | WI | $7,000 |
| HI | $5,250 | MS | $12,250 | OR | $10,500 | WY | $8,750 |
| ID | $10,500 | MO | $10,500 | PA | $8,750 | US | $8,750 |
Table 3 – average cost for installed system per state (tax rebate excluded)
Depending on your average monthly bill, it will take you around 8-12 years to recover the cost.
What have we now saved in terms of the environment?
| AL | 9.6 | IL | 6.4 | MT | 5.9 | RI | 3.1 |
| AK | 2.6 | IN | 8.9 | NE | 9.3 | SC | 9.6 |
| AZ | 9.6 | IA | 5.7 | NV | 4.6 | SD | 1.8 |
| AR | 9.1 | KS | 6.8 | NH | 3.4 | TN | 10 |
| CA | 2.2 | KY | 11.6 | NJ | 3.7 | TX | 8.3 |
| CO | 5.3 | LA | 7.6 | NM | 5.6 | UT | 7.4 |
| CT | 3.9 | ME | 1.7 | NY | 2.6 | VT | 2.9 |
| DE | 5.3 | MD | 7.9 | NC | 8.9 | VA | 8.3 |
| DC | 1.8 | MA | 3.2 | ND | 10.2 | WA | 1.7 |
| FL | 8.2 | MI | 5.5 | OH | 7.7 | WV | 11.7 |
| GA | 8.9 | MN | 5.6 | OK | 6.9 | WI | 6 |
| HI | 5.1 | MS | 7.9 | OR | 2.2 | WY | 9.2 |
| ID | 1.5 | MO | 11.2 | PA | 6.9 | US | 6.7 |
Table 4 – average Tons of CO2 saved per year
One third of our Carbon Footprint derives from the home. Becoming carbon neutral is not always going to be easy nor cheap. But removing the household carbon based energy consumption from our footprint will be one of the most significant steps. Solar is still in its infancy and the technology will only improve from here. But right now it is a viable solution in combating climate change. Have you run the numbers?
