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Sun Volt Solar

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We are at a cross roads in human history, we can choose to continue on as we have been, or we can make a change to improve our future and quite possibly the future for several generations to come. We are here to promote energy independence, a better environment, a secure future and a higher return on investment for your hard earned dollar. It is what I believe in, it is why I am in the solar business.

Solar Power: Save money, increase the value of your home

20 Dec 09 | Sales, Solar Electric, Solar Hot Water, solar thermal

I have been going over some of the bills from the last few years. My utility company, Central Hudson Gas and Electric has been increasing the cost of electricity by 9% annually.

central hudson electric rates

Nine percent per year seems like quite a bit, especially since inflation has been running around two to three percent. The increases of fuel costs and energy products in general has far outpaced inflation. Projected out 25 years, the cost per kWh is $1.53! I don’t expect it to get that bad, but one never knows.

Here are some solar facts:

Based on conditions here in NY state:

  • The average home owner chooses to install a 4 KW DC photovoltaic system. This generates 4500 to 5000 KWh per year.
  • With rebates and incentives, the final system cost is about $10-11K.
  • Over the course of the system life (25 years), the electricity generated will cost $0.09 per KWh. Currently, NY electricity averages $0.158 KWh (increasing at 9% per year).
  • Without inflation, that equals a savings of $29,000.00.

Also, based on conditions in NY state:

  • the average home owner chooses to install an 80 SF/80 Gallon solar hot water system. This will supply a family of four with 80% of their hot water annually.
  • With rebates and incentives, that system cost is around $3,800.
  • Over the course of the system life (25 years), the energy converted by this system will cost $0.03 per KWh. Currently, NY electricity averages $0.158 KWh (increases 9% per year)
  • Without inflation, that equals a savings of $16,500.00.

Of course, these are long term investments. In order to realize this type of savings, a homeowner will have to stay put for 25 years. That is a rarity these days.

Solar systems retain almost all of their pre-incentive/rebate value when added to a structure as a capital improvement. Here is a list of residential home improvements and the values added to a typical house:

  1. Two story addition: 94%
  2. Bathroom remodel: 93%
  3. Major Kitchen Remodel: 91%
  4. Solar System: 90%
  5. Basement finish/remodel: 89%
  6. Siding: 88%
  7. Roof Replacement: 85%
  8. Deck: 84%
  9. Hot tub: 84%
  10. Family room addition: 82%
  11. Sun room: 75%
  12. Garage addition: 70%
  13. Backup power generator: 58%

Of course, if the rebates and incentives are considered, then the installation of a solar system is cash positive from day one. What this means is the homeowner pays $11-12K but gets $32,000 of additional home value. I can’t think of a better deal than that.

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20 Dec 09 | Sales, Solar Electric, Solar Hot Water, solar thermal | Comments (0)