Getting a Photovoltaic (PV) Solar Energy System on Your Home
Introduction
Cost of a PV System Getting a PV system on Your Home: A Strategy
Cost of a PV System
A PV system that is connected to your electric utility’s distribution grid (and thereby does not need a battery backup system) costs about $8,000 per kW (kilowatt) of capacity. Based on the average annual amount of sunshine that falls on Wisconsin, a one kW PV system will generate about 1,200 kWh hours of electricity annually.
Remember, while the up front cost of a PV system is high, the fuel—sunlight—is free. A PV system should operate for 40 years or more without significant additional costs. Over that 40-year life, the cost of the PV power is roughly 15 cents per kWh (if a $8,000 1-kW PV system operates for 40 years, generating 1,250 kWh per year valued at $0.1 per kWh). While this is more than you are currently paying, perhaps it is less than what you will be paying in five years.
The average single family home in Wisconsin consumes roughly 10,000 kWh annually. Does this mean that you will need to spend $67,000 for a 8.3-kW PV system? Definitely not! First, there is no requirement that you must generate 100% your own power needs. Secondly, an efficient home will use much less electricity than average. More on these two issues later.
Photo creditsPhoto 2: Bill Eager
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