SIZING A SOLAR ELECTRIC
SYSTEM
The average home in California will utilize a 3,000 Watt (DC)
solar electric system, which will produce approximately 4,400
kWhrs a year. It requires 250 sq ft of available rooftop or open
ground space with a good unobstructed exposure to the South. Other
exposures between East and West work well too, but are not as
effective as south. An effective way to cut down on energy usage,
and in turn the size of the system needed, is to install compact
fluorescent lights and replace old appliances in your home or
business with modern energy efficient appliances.
CALIFORNIA ENERGY COMMISSION REBATES
These funds are collected by the state through utility ratepayers
bills. The California Energy Commission (CEC) rebate is based
on the size of the system you install. The larger the solar system
you install, the larger the rebate amount. The current rebate
level for a typical 3,120 Watt DC system is $7,000. In order to
make purchasing a solar system easier, Independent Energy Systems
will apply for the CEC rebate for you and discount the rebate
amount from your system cost. This way you will not have to pay
out the additional $7,000 at the time of purchase and then wait
three months for your money to be returned to you. After the installation
of your solar system we will arrange the building inspection,
complete the paperwork, and submit the rebate claim. The CEC will
then pay the rebate directly to Independent Energy Systems. Learn more about incentives.
HOW MUCH DOES IT COST?
No two solar electric systems are exactly the same, and the cost
will vary depending on the existing installation conditions. However,
a typical 3,120 watt DC system will cost around $26,000 before the rebate. Because
Independent Energy Systems will carry the $7000 rebate your initial
cash outlay drops to approximately $19,000. In addition, the Federal
Government offers a $2000 income tax credit on the net installed
costs of solar energy systems, bringing the overall cost down
to approximately $17,000.
HOW MUCH WILL IT SAVE ME IN UTILITY
COSTS?
Every Kilowatt hour (Kwhr) generated by your system is a Kilowatt
hour that you do not have to buy from the utility. Based on typical
offset rates of $.195 per kWhr, a typical 3,000 Watt solar electric
system, producing 4,400 kWhr/year will generate annual cost savings
of $860. When analyzing your investment it is important to remember
that this savings is tax-free money and also that utility rates
have historically risen an average of 6% annually over the last
30 years. Talk to us about a detailed financial analysis for your situation.
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