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Solar Power: How to Estimate Cost Savings For Your Home

Green Bolt
Solar Power: How to Estimate Cost Savings For Your Home

Reputed solar service providers offer detailed solar power estimates in Stamford for installing and maintaining a solar system for your home. The difficult part is accurately calculating the savings from solar power systems because multiple factors are at play. Since solar installations are an investment rather than an expense, let’s develop a plan to determine the cost savings from a solar power installation for your Stamford home.

Determine the System Size

Depending on your household’s energy requirements, you will determine the size of your solar system, i.e., the number of solar panels you need. We have to make a few assumptions to get a solar power estimate for your Stamford home.

Average electricity consumption/day for a Stamford household = 30 kWh

System loss factor = 1.44

So, taking into account the loss factor, the solar panel will have to generate

Solar energy needed = 30 kWh x 1.44 = 43.2 kWh

With an average of 4 peak sun hours, you can get 4 Wh/day. So, solar power to be supplied to an average American home comes to:
43.2kWh/4Wh= 10.8kWh

So, according to the calculated solar power estimate in Stamford, the homeowner will need a solar system that can produce approximately 10-11kW of power. So, they will need thirty-two 330W solar panels covering around 600 sqft of their roof.

This investment would save them $125/month (the average electric bill for Americans.

Factor In the Incentives

Homeowners get many incentives to install solar panels in their homes. The most popular among them is the federal solar tax credit. Under the scheme, you become eligible for a 30% tax credit when you install a solar system. If your initial investment in a solar system is $25,000, you can get $6,500 deducted from your annual income taxes.

Some utility companies also offer rebates to their users to switch to solar power. Additionally, solar users can also claim SRECs for sending energy back to the grid. They can earn hundreds of dollars per year from them.

Calculate The Savings

Now that you have a solar power estimate for your Stamford home, the size of the installation you need, and the incentives you are eligible for, you can now calculate the savings you stand to gain.

For ease of calculation, let’s say your initial installation cost is $25,000

You receive a tax credit = 0.26X25000 =$6500

Net Investment = $25,000 – $6500 = $18,500

Average monthly power bill = $125, so yearly power bill = $1500

The life of an average solar installation system is 25 years. So, your savings, without even accounting for rising power costs, will be at least $37,500 over the system’s lifetime.

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