Cash benefits behind Solar Power
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Cash benefits behind Solar Power
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The sun typically provides me with sufficient direct light to produce more than 7,500 kilowatts of power throughout the entire year. What does that mean for you in terms of money? That means that 7,500 kilowatts at 14 cents per kilowatt on average is what most Americans pay on average per year for electrical power. That’s a staggering 1,100 dollar of electrical power is what most residents and businesses pay but the Sun provides it to me for free. The process is rather simple to comprehend, the sun shines nice and bright on any given day, the solar panels absorb the sun’s rays naturally even on a cloud covered day, the same panels collect sun light. With a mere 175 watts capable solar panels at 10 panels per location, we may generate close to 15 kilowatts of power per day.
The solar electric power conversion occurs when the built in inverter draws the sun generated direct current and converts it into alternating current to back-feed the existing electric current coming from the electric company! When the two world of existing electric current and new current come together, they reduce the speed in which the electric meter operates right outside of the installation location. Not only do we receive cash rebates http://www.solardirect.com/rebates/rebates.htm#taxfor every single kilowatt produced via the sun’s power, we also receive a significant reduction in the electric bill each month.
How does all of this process work? In a nut shell, the sun shines every day, the solar panels collect the light, perform the energy conversion, and you make and save money! The electric company is aware that your electric bill has reduced after a solar panel installation. In turn, they offer to pay you a certain amount of money each month that you produce more energy than you use. What you are paid depends on location and company. In Texas, the electric company pays you roughly 6 cents per kilowatt produced over the amount of electricity consumed; this process is known as Net-Metering. You will recognize the process is occurring when you see the electric meter spinning reverse!
This means that you’re being paid not the other way around, a typical example in how the process works in a residential home.
An average family needing 2.5 Kilowatt system – (current electricity bill between $50 and $75 per month)
Cost of Solar electric system incl. Installation: $22,500
Reduction: Government Rebate: – $7,000 *
Reduction: Tax credit: -$1,163 **
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You pay only: $14,337
UNLESS you install the system yourself! If you choose to install the system yourself, you stand to save more than 50 percent of $14,337 costing you only $7,150 on a national average for a 10 Panel System