(August 28, 2018) Can you say that solar pays? How does a home with solar energy compare to a home without solar energy? Here’s a hypothetical example of how that comparison looks.
John and Liz live on the same street. Joe and Laura live on the other. It’s a new subdivision and they live in identical models that the developer offered when the subdivision was first built. They both have Northern exposures. With both houses, trees were planted to the sides of the backyard leaving the Southern exposure of their roofs without obstruction for the foreseeable future.
When one couple decides to have a solar energy system installed on their roof the clock starts running on a comparison that will last until the other couple decides to follow suit. They can compare their energy costs over time and see the benefits of adding a solar energy system or not – they can see if solar pays.
Initial cost: The homeowners who choose to stick with the electricity provided by the utility company will not have the initial investment required to add solar panels to their home. This expense can be significant. However, there are also state and federal incentives to defray the costs.
Cost of energy over time: With continued dependence on ‘the grid,’ one couple’s electric bills will continue unabated and, in fact, will increase over time. That’s inevitable. With a solar energy system on the roof, the other couple will short circuit the monthly electric bill and replace it with a diminishing expense (should they finance their solar panels). Eventually, they’ll have electricity with virtually no electric bill at all.
Net metering offers electric savings account: On days when the sun shines brightly, the couple with the solar panels are liable to use less energy than their solar panels collect from the sun. With net metering, they will receive credits for the extra electricity that is contributed to the grid. They can use those credits on days when the sun doesn’t shine as brightly.
Safer and greener energy: The couple dependent on the grid and utility company for their electricity will also, most likely, depend on coal or nuclear power for their electricity. The couple with the solar energy system will reduce the need for coal and nuclear power. They’ll have the peace of mind knowing that they’ve made a difference.
Property value: The couple with the solar energy system will enjoy a greater resale value of their home when it’s time to move because they offer a home with virtually free energy. The other couple won’t have that benefit. This is another way that solar pays.
The only benefit to not installing a solar energy system is that you avoid shelling out that initial cost. But, both couples would probably agree that’s a short-term, and short-sighted approach. In the long run, it’s clear that solar pays.