Cost
& Savings
What
is the cost?
A residential photovoltaic solar system can cost anywhere
between $10,000 and $100,000, depending on much power is
needed for your household and with a grid-connected system,
any home is eligible.
Financing
Financing a system is typically done with funds from a home
mortgage or home equity line of credit. The price the homeowner
would pay the utility provider for power are similar to or more than
a loan payment. Not only that but the solar PV system now
adds value to their property and they are protected from
future utility rate increases.
Investment
Not only does a solar PV system add to the equity of your
home it is a long term, low risk, high return way to invest
your money. You receive an initial tax free annual return
of 4-10%, which is better than most high risk investment
options like bonds or stocks. As PG&E rates increase,
your annual return increases.
Tiered Rates
PG&E uses a tiered rate plan to bill its customers.
There are 5 tiers in this plan and the more energy you use
the more expensive each tier gets. The rates change periodically
but you typically pay 3 times as much for the higher tiers
than you do at the baseline. The advantage of solar power
is that it prevents you from reaching those higher tiered
prices. So for a customer who regularly uses enough power
to reach the higher tiers will see real significant savings
once they have a solar PV system installed.
Time-of-Use
PG&E also offers homeowners a time-of-use metering.
With time-of-use metering you are able to use power off
the grid during off peak times, when the power is cheaper.
And you can put power into the grid during peak times, when
the power is more expensive.
Increases
Property Value
Not only do you save on you monthly PG&E bill but your
overall property value increases as well. PV solar power
systems value typically increases $10-20 for every $1 saved
annually in electricity.
For more residential information:
• Solar
Power for Residential
• How
Solar Power Works
• Solar
Energy Benefits
•
Residential Rebates & Tax Credits
