Your solar energy system is an investment. The value of it lies in the amount of returns and how fast you recover your initial outlay.
But in order to properly answer these, we need to consider three things. One, the power-generating ability of your system or the size of the solar PV system you have. Two, the cost of your system. And three, if your system allows you to ‘sell’ back excess energy it produces. Now, let us delve into these three.
The size and price of your solar PV system.
There are various sizes and prices of solar energy system in the market. The larger the system is, the higher its price. But a larger system also generates more energy.
Finding the right balance and optimizing your needs is the way to go. Too small a system is impractical, and too big a system can mean waste since you cannot fully utilize it.
To help you visualize the use of solar energy systems, we assume that your household racks up an electric bill of PHP 5,000 per month. A solar energy system needed for that, with installation, leeways, and adjustments covered, may hit a total of PHP 150,000.
The solar energy system that costs PHP 150,000 now saves you PHP 5,000 per month.
150 000 (cost) / 5 000 (savings per month) = 30 months
30 (months) / 12 (months per year) = 2.5 years
This means, theoretically, you will get your initial outlay by the end of 2.5 years. However, this is a basic and simplified calculation. To fully support your needs, SolarWisePH offers a free solar calculator and personalized computation.
More than a million savings!
With good use and maintenance, a solar energy system and its other components may last up to 25 years.
After the 2.5 years to get your initial outlay, you have 22.5 years or 270 months. Since you have PHP 5,000 of savings per month,
270 x 5,000 = PHP 1,350,000 of total savings.
But there are actually faster ways that solar energy systems can pay for themselves. This is through net metering.
What is net metering system?
Net metering system is a way for homeowners to ‘profit’ from their solar energy system. It allows homeowners and businesses to cover their initial outlay faster.
Note though that net metering is only possible if your system is connected to the grid. Otherwise, for the case of off the grid solar energy systems, net metering is impossible.
How does it work?
There are times that your solar energy system will generate more electricity than you consume. These “extra” electricity will then go to your utility company such as Meralco. The utility company will pay the homeowner in the form of ‘credit’. This credit can be deducted from your power bill in the months when you consume more electricity than your solar energy system can generate.
Net metering is also important because there are cloudy and rainy days where the solar energy system tends to generate less energy. During these days, homeowners use the power provided by utility companies like Meralco and instead of paying, homeowners’ earned credits are used.
These are all detailed in the Renewable Energy Act of 2008.
Solar PV System: Added Property Value
Since the world is realizing the benefits of having solar energy system, many property buyers also now see the added value of going solar. That is why a properly installed and working solar energy system is an added value to your house or property. When selling, you may either recoup the total cost or even reap a little profit as solar energy systems dramatically increase property value.
Solar Energy System: A Sound Investment
A solar energy system is an investment. It saves you money from your electric bills, it gives you ‘profit’ from net metering, and it adds value to your property. These are just the economic benefits of going solar. But just like any other investments, it takes time and effort to reap rewards that’s why SolarWisePH is there to help and guide you. You can ask us any questions and we will gladly answer it. You have us every step of the way!