Quote:
Originally Posted by JSH
1. You aren't using enough electricity. If you are only using $40 a month you don’t have an all electric house. If you have your own powerplant on your roof you would want to use it.
2. I pay more than 8 cents per kWh – more like 11 cents per kWh after generation, transmission, and distribution charges.
The numbers from my quote (I got 3 they were all very close)
4.97 kWh system
Cost of system: $9489.73 (Using Oregon manufactured panels - cheaper with Chinese panels)
Yearly Production: 5769 kWh (That is 13.25% of nameplate)
Annual Usage: 5840 kWh
My annual bill: $1020
Say I save $1000 a year that is a simple payback of 9.5 years. That doesn’t take into account opportunity cost for investing that money but it also doesn’t take into account electrical rate hikes over the next 30 years the system is warrantied. Add in my $10 per month usage charge and I save $900 a year for a 10.5 year payback.
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My bill shows a fixed cost of $11/mo, and assume it's the same for you ($10 is close enough too). Subtract that out of your yearly cost, and divide it by 5840 kWh consumed, and you end up with $0.15/kWh, which is quite a bit higher than 11 cents.
Anyhow, assuming your 11 cent per kWh and an annual electrical production of 5769 kWh, that is $635, not $900. 15 year payback.
If your actual rate is $0.15/kWh, that is $877/yr. Almost 11 year payback.
So my assumptions weren't way off from what you're saying.
Taking the average rate of return of the stock market of 7%, the money invested rather than put into solar would have doubled in 11 years. Due to compounding interest, there is no catching up with the savings from solar unless electricity prices skyrocket for some reason.
I like solar, but the PNW isn't a great place for it. If I lived in HI and paid $0.33/kWh, I'd have gone solar long ago. Heck, if I lived in Phoenix, I'd probably go for it.