Pricing Out a Solar Power System

Without actually coming to your home in the Philadelphia or South Jersey area, taking measurements of your roof, analyzing for potential obstructions and reviewing your electric consumption, it is almost impossible for anyone to give you a price for a solar system. No one will truly know the number of panels you need or have room for, and then also determine the number of inverters you need to convert that DC power to AC current.

What I recommend is to look at the example solar system to get a general idea of what a system costs. You can also use the Solar Savings Calculator below to get an approximation of how much you will save with a solar power system.

Continuing with the example system, we had a price after rebates of $29,103. At 6% interest on a 15 year loan, your monthly payment would be $245.

The example system produces 8,424 KWh of electricity per year in this part of the country. At 18 cents per KWh, this works out to $1,516 per year of electricity, at TODAY's rates. On a monthly basis, this works out to $126 per month.

Next, lets look at the renewable energy credits. Currently, in Pennsylvania, you get about $250 per certificate. You earn one certificate for each 1,000 KWh that your system produces. Thus, this example system would generate 8 credits for you per year, or $2,000. In New Jersey, this number may be twice that amount. Taking the 2,000 per year over 12 months, this works out to $166 per month in utility company rebates. Add this to the $126 per month you are not spending on electricity, you get a total monthly savings of $292 per month.

So, you are saving $292 per month and the loan is costing you $245 per month. From Year 1, you are ahead by $47 per month, or $564 per year. Thus, the system more than pays for itself right away! Starting i Year 16, you no longer have ANY loan payments, increasing your effective income by almost $3,000 per year!

To get an idea of how much you will save by "going solar", get your electric bill and try using our Solar Savings Calculator

Increased Value of Your Home

According to Wells Fargo, the increase in the value of your home is based on the annual electric savings times 20. Thus, this example system, producing 8,424 KWh of electricity at 18 cents per KWh, would increase the value of your home by $30,326!

As an added benefit, the state will NOT allow the increased value of your home to be included in any assessment, meaning your property taxes will not go up as a result of this home improvement!

Free Electricity from Year 16!

Once you have paid off your solar power system, you will reap the full benefits from a cost standpoint. Your electricity will be free, and you will have no more payments.