Every year after the recoup is profit in the form of diminished power bills, simply put, money saved is money earned. The solar panels we supply are of higher quality, and have a longer life span. If we go by the 25 year warranty, a 2.6kW kit has the potential of saving $14,208.96 during their 25 year warranty, paying for themselves over 3 times the original purchase cost.
Our 2.6kW Solar Array Kit includes:
How do we reach these numbers?
The average US household uses around 30kW (Kilowatts) per day, 911 kW per month, or 10,932 kW per year. This can make for a very yearly large electric bill, with the average cost of 12 cents per kW , making the average household electric bill $1,355.57 per year.
That's national average figures. To calculate your exact usage and yearly bill, you will need to contact your power company or look at your power bill to see your monthly usage and find their cost per kW.
How can I calculate my needs?
Calculating recoup and power generation can get tricky, so for our example we will use the US averages, this should cover most of us in the United States, with those figures, we can get a rough time to recoup the cost of a solar array.
We need to multiply our solar array kW output (2.6kW) by the total “sun hours” in a day, a good yearly average for around the USA, is 4.25 hours of good sunlight per day. 2.6kW times 4.25 hours an average of available sunlight over an entire year, which gives us an average of 9.8kW generated in a single day.
If we use 100% of the power we generate, we’ve reduced our power consumption from the power company by around 33%. That could diminish a yearly bill by $443.55, lowering the yearly bill from $1,355.57 to $912.02 for the year.
Is it worth while now?
The average cost of electricity over the last 10 years also plays a part in payback and return on the original cost. Over the last 10 year the average cost of electricity in the USA has gone up 2 cents, from 10.4 cents per kW in 2006 to 12.43 cents per kW in April 2016 . While this doesn’t seem like much, the average household will have spent an additional $1,022.93 over 10 years of rate hikes.
Not counting the 30% federal tax credit, a 2.6kW kit could recoup the material costs by in as little as 10 years and 6 months. If we can count the 30% tax credit, then the material costs could recoup in as little as 7 years and 9 months.
2.6kW 30 Year Analysis
The 30% tax credit is good for up to 2 years, so if you cannot use the entire 30% tax credit in the 1st year, you can carryover any unused amount of tax credit to the next tax year.