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The most cost effective grid connected PV systems provide "peak shaving" as opposed to completely eliminating electric bills. Some electric utilities bill their customers based upon a "tiered-rate structure", with prices per unit of energy (kWh's) increasing as consumption increases. With baseline utility rates being the least expensive and top-tier being the most expensive. Photovoltaic systems can effectively reduce costs for power hungry properties paying top-tier rates, resulting in a positive financial return on investment. |
Payback Time
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The most often asked question by those calling to inquire of the new solar grid systems is, "How long will it be before the system begins paying for itself?" The answer is almost immediately. The system will not wipe out your power bill tomorrow, but it does offer protection against the uncertainty of high rate hikes. An investment in the Los Angeles Department of Water and Power solar grid tie system buy-down program provides the consumer with the power Southern California Edison and Pacific Gas and Electric have not had since deregulation. That is, the consumer is effectively able to lock in their electric rates for the long term. Even if rates go up, by supplementing one's energy source with the sun, the cost of that unit is not subject to the increase. It allows the consumer to hedge against the chaos presently plaguing the power industry. For those following the energy crisis here in California, the problem occurred, in part, because the electrical utilities were paying $ .03 to $.04 per unit of power in May, 2000 and up to $.30 per unit by December, 2000. Financial chaos ensued, in part, because they were only able to charge $.07 for that same unit. Southern California Edison and Pacific Gas and Electric have argued their problems ensued because they were unable to lock in the lower rates with a long term contract. The fact is, there is a limited ability to produce enough power to correct that problem in the short term. And, while the PUC has allowed the utilities to increase their rates to the consumer, no long-term solution has emerged. Today, there is tremendous uncertainty with respect to the future cost of energy. Solar photovoltaic systems offer a part of the solution. The Los Angeles Department of Water and Power, a forward looking agency, has not faced the same problem as Southern California Edison and Pacific Gas & Electric for a number of reasons. And, in a further effort to assist its customers in avoiding that crunch, it is offering its customers the option of placing solar power generators in their homes, as well as providing a generous contribution towards the payment. This is a win/win investment.
Purchase of a solar electric system must be viewed as an investment in the future, similar to the purchase of an IRA. If the cost of energy production remains stagnant over the next 30 years the solar system pay off occurs in 15 years. The more likely scenario is that energy prices will rise, although no one can predict the amount of increase or the rate of increase. If in 1972 one could have calculated the amount of gasoline they would use for the next 30 years, the cost of purchasing and storing that source of energy would have paid for itself in relatively short order. |
Average Residential
- Grid Connected Solar Economics
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The average cost for residential solar electric installations is $8.00 per peak Watt An average 2.4 kilowatt solar electric system has 2,400 Watts of solar panels. ($19,200) In Los Angeles we receive an annual average 5.5 hours of direct sunlight daily Multiply this to get 13,200 Watt hours or 13.2 kWh DC power. Subtract 30% to
account for Various System Performance Factors Multiply 9.24 kWh annual daily average by 365 days equals 3,372 kWh annually Multiply 3,372 by the price charged per kWh, on your electric bill, to determine annual savings. When the price of electricity increases, annual savings increase proportionally. Typical simple return on investment in L.A. is 15 years including rebates and tax credits. |
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in the San Fernando Valley |
| Positive | Negative |
|---|---|
| Environmentally friendly,
a 2 kw (2000 watt) system will eliminate the need to burn 125,000 lbs of coal over the expected 30 year system life |
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| Reduce Utility electric bills | |
| When your meter spins backwards you are storing excess power for use later | |
| Reduce dependence on fossil fuels | |
| Reduce peak hour demands on the grid | |
| Reduce demand for new power plants | |
| Roof exposure shaded underneath panels | |
| A 2 kw system may provide an average
house in Los Angeles 50% of its power, with no rate increases, ever! |
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| Protection against future rate increases | |
| Creates energy independence | |
| Price is in the same league as most home improvements | |
| Homes with solar power have: Prestige Elegance Reliability Lighter environmental footprint Decreased electric bills |
LA
Installation Service page|
GO Solar ® Company 12439 Magnolia Blvd. #132 North Hollywood, CA 91607 Phone 818.566.6870 |
