Aug 19, 2011

Solar Panel Systems - Free Electricity

The price of electricity is now making people interested in solar energy.  The first question being asked is whether it is worth the up-front cost.  There is no straight answer to that, but in general it would be.  Of course, there is one factor you need to consider first:

That is: Location of your home. It is important to have enough sunlight where your house is loaded. Ideally, you should have sufficient north facing roof with no shade.  The more sunlight that can be captured in the solar panels, the quicker the solar energy system will pay off your investment. For me, living in Melbourne, probably the worst city in Australia to capture sunlight. Nonetheless, my 1.5kw system provides my energy usage during summer and covers my winter usage cost, too.

2. Amount of electricity you use is not as important as many people claim (depends on how you look at it financially).  Since government only subsides up to 1.5kw system, it is wise to purchase just a quality 1.5kw system.  This way, you get the maximum return.

Calculation:

1.5kw system => $3000.
Generate $1000 worth of energy (due to government premium tariff)
Excluded the potential interest of up-front cost, 5%, the investment return is 28%.

You tell me, where can you get a solid investment with this kind of return?

1 comment:

  1. shifting on the use of renewable energy is indeed a good investment not only to our pockets but as well as to the environments. I have always believed that the use of solar energy has been a great help to both us humans and the environment. thanks for the wonderful post you've got.:)

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