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Solar return on investment

Sunrise Solar • Sep 08, 2016
Solar return on investment
Sunrise Solar
Thu, 09/08/2016 - 10:43am

Part 4

The dramatic plunge in the price of solar panels since 2009 is attributed to a global solar manufacturing oversupply. In turn, this has contributed to a drop in the price for solar equipment of 50%, making it less expensive in today's post-rebate world. Factor in the federal tax credit that reduced the installation price 30%, and solar has become very affordable. In many cases, it is actually priced better than a utility on average price per watt.

As prices continue to drop, the ROI for builders and homeowners is rising. With this reduction in price, there is also an increase in customers who expect solar and new home communities to offer it as standard, allowing builders to tie affordability and savings back to consumers. And because of phenomenal pricing and shorter paybacks, both builders and homeowners can gather all the benefits and long-term value found with installing solar without having to resort to third parties or leases.

"Residents of the top states in the [Geostellar Solar Index] can see their investment would be completely paid back in four to six years, and then receive free energy worth another five times that amount," says Mark Wirt, a senior analyst with Geostellar, publisher of the quarterly index that analyzes the profitability of investing in rooftop solar in the U.S.

Most people know that electricity rates aren't getting any cheaper, making this an important point to communicate with home buyers about owning versus leasing. Because of this, the ROI for a solar electric system will continue growing as the electric companies continually raise rates.

To help homeowners decide on whether or not to invest in a solar electric system, a comparison of the cost per kilowatt-hour for solar versus the price per kilowatt-hour being paid to the electric company (this is an average in tiered rate structures) can be quite effective. On the plus side of this is that calculating costs and savings with solar can be done on a per kilowatt-hour unit basis using simple division. From there, demonstrating lifetime savings and payback time frames for each customer becomes very easy.

Though solar design professionals do have to take into consideration several factors to determine actual production and savings potential, it is important to remember that the historic electricity rate has been increasing. According toskyhighenergy.com, electricity increases on an average of 4% to 7% a year across the U.S. This means that a bill that is currently $200 a month could be as high as $300 within 10 years. By going solar, homeowners are locking in their rates and can see the offset savings continue to grow as the utility rate increases over time.

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In the rapidly evolving landscape of renewable energy, staying at the forefront of technological advancement is not just an advantage, but a necessity. Sunrise Solar, a leader in the solar industry, demonstrates this principle through our unwavering commitment to embracing and adapting to new technology. This dedication not only sets Sunrise Solar apart but also ensures that our clients receive the most efficient, sustainable, and cost-effective solar solutions available. A Culture of Innovation At the core of Sunrise Solar's success is a culture of innovation. Our company thrives on exploring emerging technologies in solar energy, from advanced photovoltaic (PV) cells to cutting-edge energy storage solutions. This proactive approach allows Sunrise Solar to offer custom solar systems that are not only tailored to the specific needs of our clients, but are also at the cutting edge of solar technology. Expertise in Photovoltaic Technology Sunrise Solar's expertise in photovoltaic technology is a testament to our ability to adapt to new advancements. By integrating the latest in PV cell efficiency, Sunrise Solar maximizes the energy output of each installation, ensuring that our clients get the most power per square foot. This expertise is crucial in regions with limited space or in applications where maximizing energy yield is paramount. Smart Solar Solutions Smart technology has revolutionized many industries, and solar energy is no exception. Sunrise Solar has embraced this trend, incorporating smart solar solutions into our offerings. These include intelligent monitoring systems that allow for real-time tracking of energy production and usage, as well as automated adjustments to optimize efficiency. Such innovations not only enhance the performance of solar installations but also provide our clients with unparalleled control and insight into their energy systems. Energy Storage and Efficiency As solar technology advances, so too does the need for effective energy storage solutions. Sunrise Solar is at the forefront of integrating battery storage technology with solar systems, enabling clients to store excess energy for use during peak demand times or when sunlight is scarce. This adaptability ensures a consistent and reliable energy supply, enhancing the overall efficiency and reliability of solar power systems. Sunrise Solar's expertise in adapting to new technology is a cornerstone of our mission to provide state-of-the-art solar solutions. By continually embracing innovation, Sunrise Solar not only leads the way in renewable energy but also empowers our clients to achieve their sustainability goals. As we look to the future, our company's commitment to technological advancement promises to play a pivotal role in shaping the landscape of solar energy, driving us toward a cleaner, more sustainable world. Learn more about the emerging technologies we use in solar system installations. Contact us today.
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