Six Easy Steps to Estimate Cost of a Solar Power System - parts 2 and 3

Step 2: Anticipate the future

In 2005, average residential electricity rates across the USA ranged from about 6 to nearly 16 cents per kilowatt hour depending on where you lived. Average retail and commercial electricity rates have increased roughly 30% since 1999 and the upward trend will likely continue especially as costs for the coal and hydropower used to generate that electricity rise as well. So think about your home electricity needs and present and future cost in relation to one another.

Step 3: How much sun do you get?

The Florida Solar Energy Center has conducted a study to examine how a 2-kW photovoltaic system would perform if installed on a highly energy efficient home across the continental USA (http://www.fsec.ucf.edu/en/publications/html/FSEC-PF-380-04/).

The study accounted for all factors that impact a PV system's performance such as the temperature effect on the photovoltaic cells, the amount of sun peak hours in various regions, and the efficiency of inverter to convert solar derived energy from DC to AC.

As the study implies, solar photovoltaic systems work just about anywhere in the US. Even in the Northeast or in "rainy Seattle", a pv system can pencil out if designed and installed properly. In New York or New Jersey, a one kilowatt system should produce about 1270 kilowatt hours of electricity per year, in Seattle, a one kilowatt system should produce about 1200 kilowatt hours per year. In the Southwest, of course, those ratios will be much greater.

Solar contractors in your area can help determine the best size for your solar photovoltaic system.