Are Solar Panels Really Worth It? Is it reasonable to install a solar power system? Solar panels are worth it because they give you the means to generate your own electricity from sunlight. Installing solar panels can bring a great advantage for homeowners, especially if they live in areas with high electricity rates, high sunlight exposure, and a dependable power grid. The best scenario is when you have all of these factors plus the financial resources to start working on it immediately. Solar panels can significantly reduce, if not eliminate, monthly electric bills making it an excellent investment for the money. Additionally, you will reap even more benefits when you are in a city or state that offers tax breaks for solar panel installations.
There are a lot of factors why installing solar panels can be beneficial for you. To further explain this, we have listed below the main things that make solar panels very valuable.
High Electricity Price
High Solar Radiation Exposure
Highly Reliable Power Grid
Let us talk about them one by one.
High Electricity Prices: Solar Power Is the Answer
The amount of money you pay every month for electricity is directly proportional to the electric company’s tariff. The tariff refers to the price per kilo-Watthour (kWh) rate for the electricity you use to power your home appliances every day.
High electricity rates are one of the main reasons why solar power is so attractive to many people. When you pay more than 0.10 USD or 10 cents per kWh, that is not cheap electricity anymore.
Which Country Has the Highest Electricity Prices?
Based on the latest statistics, Germany tops the highest average electricity prices in the world. The Germans pay about 0.38 USD per kWh while the people in Denmark trails on 2nd place with 0.33 USD/kWh, followed by Portugal with 0.31 USD/kWh.
In the U.S., the average electricity rate is 0.15 USD for every kWh consumption.
Again, when you have a working solar power system connected to your home, you will reduce your energy consumption coming from the electric company.
When the Sun is pumping solar energy into your home, your appliances get power from solar first. It means solar has become your first-priority power source.
Why Is Having High Electricity Tariffs A Good Reason to Install Solar Panels? (With Calculation)
It is very straightforward when you think about it. For every kWh of energy that your solar panels produce, its value is directly proportional to your electric company’s tariff.
The higher the electricity price, the higher your savings will be as well. It will make more sense when you compare your monthly electrical bill before installing solar panels to the one after.
For example, your household consumes 4,500 kWh on average each month. Without a solar panel installed, you will be paying around 675 USD if you are in the United States with an average rate of 0.15 USD/kWh.
Now, you install a 10kW solar power system, for example, which could generate 1,200 kWh in one month on average. Take note though, it will also depend on the solar panel efficiency. Your electric company will not charge you as much as before.
For 4,500-kWh electricity consumption, you will only pay for the 3,300 units. It is because the energy produced by solar is deducted from it. So, you will only pay 495 USD.
The way you calculate your savings is by deducting the electricity fees after installing the solar power system from the supposed bill when you did not have solar panels. So, you save 180 USD in a month for this example.
When the tariff is high, your savings from solar also increases. Realizing that solar panel prices are dramatically decreasing these days, installing a solar power system in
this situation is very beneficial.
High Solar Radiation Exposure Is Always Better
If you live on the sunny side, then installing solar panels is a no-brainer. Knowing that sunlight is the primary source of solar energy, taking advantage of solar technology is a great idea.
Throughout the day, solar panels will convert sunlight into electricity in D.C. or direct current form. The solar inverter will then convert it into the usable A.C. or alternating current to power most of your home appliances.
The simple idea is that:
The higher the solar energy exposure or irradiation, the more significant amount of solar energy you can harness from your solar panels.
You can install 10,000 solar panels in a cloudy region. However, you will still produce a lesser amount of solar energy than a 1,000-module system in a sunny area.
You can know the intensity of sunlight exposure by knowing the solar irradiance in that particular area.
Highly Reliable Power Grid
It is a well-known fact that on-grid solar systems depend on the grid’s voltage and frequency as references. When the grid is stable and meets the parameters without any issue, the system starts to pump solar energy into the house to supply the power needs.
Highly reliable power grids provide continuous and stable voltage and frequency levels to the whole system in which on-grid solar setups love. This avoids any disturbances in pumping solar energy into your home or property, thus, your savings will also continue to grow.