In 1983, Motorola released the first retail mobile phone with the DynaTAC 800x with a price tag of $4,000. Today, that same money could buy at least four iPhone Xs. When it comes to solar power, there’s also been a significant reduction in cost. Many property owners are left wondering if they should wait for even lower prices.
At Green Power Energy, we want you to make an informed decision. Upgrading to solar power is an exciting venture. In this article, we’ll analyze average savings from solar power and the reduction in the price of solar panels to help you navigate your decision.
Reduction in Solar Power Cost
As we’ll discuss later, your current cost of electricity is an important factor in making the switch to solar. First, we’ll take a look at how much more affordable solar power has become.
The “main ingredient” of solar panels is the photovoltaic cell. In an article from Clean Technica, in 1977 crystalline silicon photovoltaic cells were priced at $77.76/watt and a projected 2017 price of only $.37/watt. That’s a drop of approximately 200%.
It’s almost certain prices will continue to drop. However, as demonstrated by the graph below, price reduction appears to be reaching a plateau.
Now that you have an understanding of how much more affordable solar has become over the years, we’ll examine how expensive electricity is in New Jersey.
New Jersey’s High-Cost Electricity
Deciding to upgrade to solar depends greatly on how expensive your current electricity is. If your electric bill is already extremely cheap, there’s not much incentive to switch.
In New Jersey, the price of electricity is an average of 13.23 cents per kilowatt-hours (kWh) – 2.63 cents above the national average of 10.6 cents/kWh. At first glance, this doesn’t seem like much. However, according to the US. Energy Information Administration (EIA), in 2017, the average annual electricity consumption for a U.S. residential home customer was 10,399 kWh, an average of 867 kWh per month.
Using the EIA’s average consumption numbers, the average electric bill in New Jersey is $1,357.79 annually, and $114.70 monthly. Compared to the national average of 10.6 cents/kWh ($1,102.29 annual, $91.90 month), New Jerseyans’ electric bills are significantly more expensive.
In addition, Google’s Project Sunroof allows users to enter their address and get an estimated saving over 20 years. For a property in Wisconsin (10.58 cents/kWh), owners might expect $7,000 in savings. Meanwhile, in New Jersey, savings may be approximately $20,000 over 20 years because of the higher current cost of electricity.
Another mental obstacle for property owners considering delaying their upgrade to solar power is moving. According to a study by Zillow, the average home value increased by 4.1% by adding solar power.
Should You Wait?
Upgrading to solar power may seem like an overwhelming endeavor – but over the last decade, it’s become much more affordable and practical. While prices may continue going down in the solar industry, the opportunity cost of waiting to switch and continuing to pay for New Jersey’s expensive electricity is not worth it. Keep in mind also, the technology is already so good today that the vast majority of our customers have their usage offset by 100%!
To start your upgrade to solar, book a consultation with Green Power Energy today!