Think about the price of gasoline, it fluctuates, sometimes wildly. In 1991 when gas was $1.15/gallon, wouldn’t it be awesome if you had locked in that rate for the next 20 years? There are a few things in life that we all need, and electricity to power your house is one of those things. So why not make it as convenient as possible and lock in the lowest price possible?
According to the US Energy Information Administration, the cost of electrical power increases from 2-5% annually. For our purposes, we will use a factor of 4% annual increase.
In our specific case, we got our 10.22 kWh system and 3 Tesla Powerwall 2s. Our 12 month average electric bill was $120 going in. The numbers in the scenario below compare to our system, not considering the Powerwalls, solar only.
A Solar Conversion Scenario
- Your 12 month average monthly electric bill is $120.
- You use between 12,000 & 15,000 kWh per year.
- You can get a 10(ish) kW solar system that is large enough to cover your needs most anywhere for about $28,000 – $33,000. We’ll use $33,000 in this example.
- You can get a great loan on this system, like a 20 year loan for .99%. They are out there. I have one.
- You’ll get a 26% Federal tax credit that is applied to the loan balance to keep the payments the same. (26% is valid at the time of publishing) More on the tax credit here.
- You can get a solar system that will cover your needs, installed on your home for about $120 a month.
The graphic that I’ve created below really shows the value in converting to solar power. I’ve used the $120 solar payment figure as mentioned above.
Are these numbers perfect for everybody? No. But they’re attainable for lots of people. This formula is scalable. If your average electric bill is $250, $400 or whatever, these numbers scale pretty well into a system that will suit your needs for about what you pay now in electricity. Likewise, if my 4% annual increase estimate is high or low, the numbers can be adjusted to accommodate that.
I think we can all agree that the cost of electricity will only rise over time. Because of that, switching to solar while you are at or near a point of even swap will only work in your favor.
Contact Me if you have any questions. I’ll email you back and/or set up a call. I’m happy to make recommendations.