Solar Powered Home

Will a Solar-Powered Home Pay Off?

Photovoltaic (PV) solar technology has been around since the 1950s, but, thanks to advancements in technology and lowering price range – they are more accessible and efficient as ever! Some experts even argue that purchasing a solar home system is akin to buying a second-hand car.

So, what really goes into investing in solar power for your home and will it pay off?

 
The Pros and Cons

Like most things, solar power has its share of pros and cons. So what are they?

Pros

  • Net metering allows you to sell back excess energy produced to your utility provider
  • The Sun provides an unlimited amount of energy waiting to be converted to electric power. This is compared to fossil fuel, which is considered a finite resource.
  • Solar power can help you minimize your carbon footprint on our planet.
Cons

  • Installation and maintenance costs is pricier than that of your local utility provider
  • Without a solar battery storage, solar power only works when the sun is out

 
The Cost in detail

Without a doubt, solar power is capital intensive. The main cost of owning a system comes upfront when buying the equipment, with the solar module, inverter, metering equipment, and in some cases – battery storage.

In addition to paying for the panels, there is also the installation service, maintenance, and cleaning costs to be considered as well.

While these expenses are relatively straightforward—often a solar installation company, like Buskowitz Energy, will quote you a price inclusive of these services and more!

 
The Benefits of solar

A significant benefit to powering your home with solar is a lower electric bill. However, this is still dependent on the excess amount of solar energy that can be produced given the amount of sunlight in your area.

Luckily, the Philippines experiences on average 2,105 hours of sunlight per year – making our country one of the sunniest places to be and the most viable to solar energy production.

Another benefit of a solar home system is the economic and financial effect it has on a home’s property value. Solar panels are considered as a beneficial home improvement feature that drives up value but brings down cost via the monthly electric bill.

Lastly, the trend toward “green” or “sustainable” living means there is a growing demand for homes that have a smaller carbon footprint, and that are powered by renewable sources.

 
Making the pay-off with solar energy

After determining both the costs and benefits of your solar home system, the viability of solar power is usually evaluated by calculating the Levelized Cost of Electricity (LCOE) and comparing it to the cost of electricity charged by your local utility provider.

The LCOE for household solar will typically be calculated as cost/kilowatt-hour (₱/kWh) – the same format commonly used on electricity bills. To calculate the LCOE, we will be using the following equation:

LCOE (₱/kWh) = Net Present Value (NPV) of the Lifetime Cost of Ownership (₱) / Lifetime Energy Output (kWh)

The lifespan of Buskowitz Energy’s solar panels are about 20-25 years at peak performance. After which, the panels still hold about 85% of its peak efficiency – which is long enough for homeowners to decide whether to upgrade to a new system or further utilize the remaining efficiency left on the solar panels.

The cost of ownership includes the maintenance costs, which must be discounted to find the NPV.

The LCOE can then be compared to the cost of electricity from the local utility provider.

 
The Bottom Line

When investing in solar PV systems, you are more likely to save more as the systems can payback itself and more over time. This is because homeowners won’t be spending as much money buying electricity from your local utility provider – and if net metering is in place you can reduce your bills even further.

To get started on your solar journey, spark a conversation with our solar ambassadors today by emailing us at info@buskowitz.com or give us a call at +63 2 8801 0074

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