How I Eliminated My Electric Bill With Solar Power
I have eliminated 100% of my electric bill with solar power and save hundreds per month. The best part is I am energy independent and don’t have to pay for electricity ever again. It’s really the best investment I have ever made as a homeowner. There is no other investment of stocks, bonds or a 401k that has net a better return on investment than solar power. In the following sections I will show you my electric bill with solar, explain how much I paid for solar, my return on my investment, how solar adds value to your home and how solar works with the power company.
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My Electric Bill – Making Money With Solar
See my solar bill for April, 2016. I have a negative balance for the last month!
The Never Ending Rate Increases of Electricity
My electric bill has increased every year since I purchased my house in 2008. Over the last 6 years my electric bill has gone up over 30% and it’s projected to keep climbing. My average electric bill was around $250 per month before I had solar installed and now it’s zero. You heard it right, I completely eliminated my electric bill. There best part is solar power was way more affordable than I originally thought and it will pay for itself in just a few years. Without solar my electric bill would keep climbing and there would be very little I could do about it. Within a couple more years my electric bill could easily be over $300 per month.
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Solar – Return on Investment
A typical solar array for the home can cost several thousands of dollars, depending on how much electricity you need to generate. Currently the federal government is offering a 30% tax credit for a solar power for the home. This means that the government pays for about one-third of the cost.
I purchased a 6 kilowatt solar array for my home. The system size was determined from my electricity usage on an annual basis. This solar array cost $24 thousand, but with the 30% federal tax credit the system only cost me $16 thousand. If you multiply my savings of $250 per month, the $16 thousand will be paid off in 5.3 years.
$16,000 / ( $250 x 12 months ) = 5.3 years … Do the math, it’s really that simple!
Adding Value To Your Home With Solar
Solar power will only increase in value for your home, especially since electricity rates will probably always go up. The sooner you get solar power, the sooner you’ll be saving money. Additionally, solar power will increase your property value at least what you paid for it, but probably more. As an additional incentive the state cannot increase your property taxes because of the increased value from a solar power system. This is a big deal because if the solar power increases your property value, say by $50,000, then that’s all yours and is exempt from additional taxation.
How Solar Power Works With Your Power Company
The idea with solar power is to get a system that zeros out your electricity bill for the year. With a home solar array you will produce more power in the summer months than the winter months because the days are longer. Additionally you won’t be producing power at night, so your solar array must produce enough power to balance out the electricity you’re using at night. When you’re producing solar power your electric meter goes backwards and when it’s night, and you’re not producing power, the meter goes forwards. The idea is to balance the solar power produced with the electricity used from the power company so there is a net zero usage from the power company. This means you won’t owe anything to the power company. You’ll be energy independent!
Your electricity usage and production will change throughout the year and so the electric company will true up your bill once a year. This means that you will only get an invoice from the power company once a year. This is because some months ( summer time ) you will produce more power than you use and less in other months ( winter time). The power companies know this and there is an agreement, in writing, that comes with your home solar installation. The idea is to zero out your bill so you don’t owe any money and you’re not making the power company any money.
Solar Power and The Environment
Most people don’t consider one of the great benefits that solar power can add value to and that is the environment. Solar power is a renewable energy source that doesn’t contribute to global warming. There are no greenhouse gases generated and solar power reduces the dependency on fossil fuels. So not only can solar power save you a whole lot of money, it can also help to save the environment. This might not be the reason most people get solar power for their home buts it certainly one of the most meaningful investments a homeowner can make.