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How much will it cost to switch to renewable energy

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Renewable energy usage is rapidly increasing mainly thanks to its cost lowering schemes all around the world and awareness raising campaigns to fight climate change.

In the USA last year, for the first time, solar energy industry created more jobs than coal and fossil fuel industries. Seeing the subsidies that are being offered from a lot of governments, municipalities, we can safely say this for of energy will only expand.

Some of the most popular forms of renewable energy include solar and wind. Wind energy is mostly used in different industries. Homeowners usually turn to solar as a renewable source.

Cost affecting features

Some of the main features that affect the price of your solar system are inverters, panels, solar installer work and your geographic location. According to “Open PV Project”, a project supported by the government of the United States, the current price per watt in America is 3.71 $/W. In Europe, the prices variate from 1.27 €/W in Germany, 1.75 £/W in the United Kingdom, 2.2 €/W in Italy etc.

The formula that installers use to estimate your solar system cost is your energy needs (usually for average home – 5kw) x price of watt. The location factor has a big role on your solar system size. We recommend you to use our solar calculator to have a more precise pricing. Estimating your solar system cost should not be your last step. You need to compare prices between providers for a better price and quality.

Depending on whether you live in a sunny state like Arizona, California or a less sunny state like Alaska, solar energy is an option especially thanks to the “Solar investment tax credit”. The ITC is a federal policy that supports the development of renewable energy in the United States by providing a 30 percent tax credit for solar systems on residential and commercial properties. Places like Arizona even have additional solar energy tax credits. The maximum credit in a taxable year there can go up to $1,000.

Most solar panels have warranties from the manufacturer for about 25 years and they should produce at least 80% even after that period. Keeping in mind that most solar systems pay for themselves by the end of the tenth year, for the other fifteen they would produce free energy.

Solar inverters are the equipment that converts the sun energy to a usable source. From a number of inverter types available in the market, the most common ones are the string and micro inverters. You can save a considerable amount of money if you know how to pick the right solar inverter, panels and other materials needed for the installation.

To recap, if you spend an average amount of electricity per month and need a 5kw solar system, in the United States you will probably end up spending around $15,000 – $18,550, not included the 30% investment tax you would be entitled of. Installing renewable energy in your homes our businesses would be one of the best decisions you could make to save money and protect the environment.

Approximately 65% of all solar panels in the world are produced in China.

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