State
and federal tax credits and solar rebate programs
help make PV more affordable, but they typically
can’t match today’s price for utility electricity
in most cases. This condition is rapidly changing
as utility prices continue to increase, making PV
a sensible and cost‑effective alternative.
Also, PV system reliability and durability are excellent,
with a typical PV system lasting up to 30 years
with minimal maintenance.
Finally,
unlike the electricity you purchase monthly from
a utility company, PV power requires a high initial
investment. This means that buying a PV system is
like paying years of electric bills up front. Your
monthly electric bills will go down, but the initial
expense of PV may be significant. By financing your
PV system, you can spread the cost over many years,
and rebates can also lighten your financial load.
Many PV installation companies have teamed up with
lending institutions that offer creative financing.
The
price for a PV system depends on a number of factors,
including whether your home is under construction
and whether PV is integrated into the roof or mounted
on top of an existing roof. The price also depends
on the PV system rating, manufacturer, retailer,
and installer.
The
size of your system may be the most significant
factor in any measurement of costs versus benefits.
For example, a 2‑kilowatt system that meets
nearly all the needs of a very energy efficient
home could cost $16,000 to $20,000 installed, or
$8 to $10 per watt. At the high end, a 5‑kilowatt
system that completely meets the energy needs of
many conventional homes can cost $30,000 to $40,000
installed, or $6 to $8 per watt. These prices are
rough estimates; your costs depend on your system’s
configuration, your equipment options, incentives
and other factors.
How
do you identify solar electric system providers?
Here are several suggestions.
Contact
the Solar Energy Industries Association (SEIA) at
202‑628‑7745 for a list of solar service
providers. SEIA is the national trade association
of solar energy manufacturers, dealers, distributors,
contractors, installers, architects, consultants,
and marketers.
Contact
your utility company to see which vendors it might
recommend.
Getting
more than one bid for the installation of your PV
system is always a good idea. However, make sure
that all bids are apples for apples.
For
example, a bid for a system mounted on the ground
is usually very different from another
bid for a rooftop system.
Similarly,
some PV modules generate more electricity per square
foot than others. Bids should clearly state the
maximum generating capacity of the system (measured
in watts or kilowatts). If possible, have the bids
specify the system capacity in “AC watts” under
a standard set of test conditions, or specify the
output of the system at the inverter.
Also
request an estimate of the amount of energy that
the system will produce on an annual basis (measured
in kilowatt‑hours).
Because
the amount of energy depends on the amount of sunlight,
which varies by location, season, and year to year
it’s unlikely the contractor will quote a specific
figure, but rather a range.
Bids
also should include the total cost of getting the
PV system up and running, including hardware, installation,
connection to the grid, permits, sales tax, and
warranty.