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Smart investment for Kern County homeowners: solar
Topics: solar, energy, electricity, power
Posted by admin Tue Jul 31, 2007 15:14:57 PDT
Viewed 241 times
0 responses 0 comments While the environmental benefits of solar electricity are well established, many homeowners are surprised to learn that solar is also a smart financial investment.
When Northwest Bakersfield homeowner Jerry Unfried and his family installed a 6.9 kilowatt solar system on their home they were motivated to do so for financial reasons.

“Last year our PG&E bill spiked pretty high,” Unfried explained.  “We felt that because of rising electricity costs it would make investing in solar electricity worthwhile.”

Many homeowners who invest in solar electricity realize a positive cash flow from day one. This is because payments to finance the system are often lower then the homeowner’s monthly electricity bill. The extra cash freed up by the monthly and yearly electric bill savings can be set aside for college tuitions, family vacations, retirement or other needs. Solar electricity also has an attractive return on investment, or ROI — between 6 percent and 12 percent in the first year alone.
Unfried is happy with his system.

“It just sits up there and does its thing. We are able to run our air conditioner this summer without worrying about huge electric bills like our non-solar neighbors,” he said. 

For many, the most attractive benefit of solar electricity is locking in their future electricity rates. Homeowners who opt to use solar energy protect themselves against future rate increases and lock in their cost of power at the current rate over the long run. Solar energy is also a great option for families because with a fixed cost of electricity, it helps many parents plan their monthly bills.

Technological advancements and government incentives have now made solar electricity a sound investment in your home. There are several studies that indicate every dollar saved on your utility bill with a solar electric system will increase your overall home value by $20. Based on a recent study by ICF Consulting (funded by HUD and the EPA) it is estimated that $1,500 in annual electric bill savings from solar will equate to $30,000 in additional resell value. In today’s increasingly competitive housing market, a solar electric system helps set a home apart from the others in the neighborhood.  A home with a fixed electric bill from solar is “cheaper” to live in, and thus is very appealing to potential buyers.

While most homeowners opt to install a solar electric system on their roof, many homeowners opt to install their systems elsewhere on their property.  Solar electric systems can be ground mounted or placed on a variety of different structures (such as barns, garages, gazebos, trellises, etc.), and can range in size from 10 panels to over 100. The size of a solar electric system (measured in watts or kilowatts of energy production capability) depends on the number of solar panels. The number of panels needed is determined by the electricity usage of the home, and the amount of electricity the owner wants to offset with the system. A solar electric system can be designed to produce all of the power consumed by the home, thereby eliminating the electricity bill altogether or it can offset only a portion of the bill.

At today’s current electric rates, a typical system takes between eight to 12 years to pay for itself in savings. However, as the electric rates continue to increase the payback time will also shorten significantly. The current rebate from the California Public Utilities Commission is $2.50/AC watt. The federal tax credit for homes is set at $2,000 for residential homes. Rebates and tax credits offset about 30 percent of the out-of-pocket cost. Visit: www.consumerenergycenter.org for information on California rebates.

Inspired by generous rebates offered by the government, increased popularity of green building and PG&E’s recent rate hikes, residents of Kern County are beginning to seek alternative solutions to the problems caused by increasing energy consumption and skyrocketing bills. With Kern County enjoying over 275 days of sunshine annually, the opportunity to tap into solar energy is huge and residents are starting to take advantage of this proven technology.

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