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Is a Solar System Worth It?

Home   : :   Articles

Is a Solar System Worth It?

Deciding to 'go solar' and you are not too sure if you are making the right decision? Read this article to help you make that decision. Things to ponder ...

“It makes absolutely no financial sense to keep paying for a resource like electricity that you can in fact generate for yourself with an asset that adds tremendous value to your property, hedges your costs for the next 20 to 25 years and will save you a massive amount of money over the cumulative lifespan of your solar investment”,

How to Size a Solar System: Step-by-Step

“Solar power has now plummeted to below R1 per kWh (around 0.70/0.80 cents) while Eskom’s average domestic tariff has risen to R1.92 per kWh".

It has only been in the last year or two that renewable energy sources have officially become cheaper than fossil fuels. This is thanks to a phenomenal decade of reduced prices for solar; but what does that mean for the average homeowner?

In most cases, installing a rooftop photovoltaic solar panel system will offer greater lifetime value than staying connected to a conventional utility provider. However, that doesn’t mean that solar is the right choice for every homeowner.

Rather than try to sell you on solar like other commercial sites, in this article, we’ll take a closer look at who should, and should not go solar, and why.

Location will be the main factor deciding the potential value of solar for your home. This goes beyond just sunlight, and requires consideration of electricity rates, local policy and more.

Here’s a quick glance at the situations that tend to make solar worthwhile:

  • You have high electricity bills
  • Your roof receives a lot of sunlight
  • You have sufficient surface area on your roof
  • Your roof faces south or west
  • Your state or city offers solar incentives, rebates or exemptions
  • Energy Usage

Solar performs best on homes with high electricity bills — so assessing your energy consumption is the best place to start. If you don’t know how much electricity your home consumes, look at your most recent energy bill.

Under “billing period” you should see a figure labeled kilowatt-hour (kWh) used. If your home’s energy use is above 500 kWh per month, you’re likely a good candidate for solar.

Now in assessing the value solar poses for you, remember that a huge chunk of the price you’d pay for a solar installation will include time, labor and permits.

That essentially means there’s a minimum fee to hire the services of a solar installation company - roughly, depending on the size of the project - can be from R12 500 upwards.

We wouldn’t recommend that anyone whose electricity use is below 500 kWh per month invest in solar. That’s because the savings that a few solar panels would generate over years probably won’t cover the minimum fees of hiring a full-service solar contractor.

Your Roof’s Sun Exposure

Arguably the most important step in determining if solar is worth it for you is to evaluate your roof. South and west facing roofs are the best direction for solar panels, as these arrays will receive the most direct sunlight in the northern hemisphere. Your array will need direct sunlight for the majority of the day, especially during peak hours.

If your access to sunlight is blocked by neighboring buildings or trees — even for just a few hours of the day — your system’s efficiency could suffer.

Irradiance maps offer a unique glimpse into the variations of how much sunlight roofs receive.

Your roof will also require sufficient space for a full array of solar panels. Keep in mind that a 5 kW system (around the minimum size) will require at least 15, and rooftops with ill-placed obstructions like chimneys, skylights and vents will lower the amount of available space.

Which Homes Benefit the Most from Solar Panels?

If you are still undecided whether solar panels would be a worthwhile investment, consider the following factors needed for the successful integration of a solar system:

  • Homes that get plenty of sun exposure: Your home should receive ample sunlight to take full advantage of solar panels. The ideal house will be free of obstructions, such as trees or tall buildings. In addition, the roof should be south-facing and have a steep slope that can hold a solar panel at a 15 to 40-degree angle. Solar panels will still work in less-than-ideal conditions. However, homes that receive little light or have limited roof space will not benefit from a system.Local levels of sun exposure
  • Homeowners with high utility bills: If the cost of your utility bills is constantly high throughout the year, a solar system could help meet your energy needs. Remember that you may need more solar panels installed to offset the costs, leading to a more expensive system. On the other hand, if your monthly electric bill typically stays low, a solar system would not be an ideal investment for you. A solar panel installer will review your current electricity bill and make the best call based on your needs.
  • Residents that can get state solar tax incentives: Many states offer solar incentives to encourage their residents to switch to solar panels. These incentives help reduce the system’s overall cost, making the transition to solar much more affordable. Local utility companies may offer additional incentives and credits, too.
  • Homes in states that use net metering: Excess energy from your solar panel installation can be stored in a solar battery or returned to the power grid. Several states offer net metering, which credits solar customers for the excess power that their system produces. If you accumulate enough credits, you could receive a monetary return at the end of the year.

The Bottom Line

A solar energy system is not suitable for every homeowner. However, if your home has the right location, roofing and state tax incentives and you experience high energy bills, then you might generate significant savings with solar energy. For the right home, solar energy is an investment that pays itself off over time, so be sure to take some time to consider the factors listed in this guide to determine if solar panels are worth it for you.

Talk to a solar expert to assist you if you are still not sure of the above.


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