Solar panels can mean big savings on energy bills

Of course producing your own power will save you money on your electric bill.  But how much does it cost to produce that power?  When considering the installation of solar panels or other renewable energy generation for your home or business, research the rebates available from state and federal agencies, as well as your local power company (electric companies are a rare type of business in that they actually reward you for using less of their product).  Also find out which tax credits are in effect, as the tax code is always changing.  Then calculate how many years it takes to pay off your investment and what your savings will be each year after that.  It's safe to assume that the cost per kilowatt will increase year after year, as demand increases and the cost of fossil fuels to produce that power also increases.

From The Republican Herald:


Solar power may generate only a fraction of the nation's energy, but for some local businesses and homeowners, the sun produces big savings.
"Conservative estimate, this will produce about 65 percent of the power that we use annually," said Michael Kulpcavage, who earlier this year installed 26 solar panels on his Cass Township home. The project cost about $37,000, but state and federal clean energy rebate programs will pay back $17,000 right off the bat.
"We estimated that in about six-and-a-half years, the system will be paid off. I will have my (investment) back," he said.
Kulpcavage said he'll save about $750 on his electric bills each year. Additional tax credits for going green mean that, by 2121, Kulpcavage expects to actually make money by installing the panels.
"This is picking up. You're going to see more and more of this," he said.
Renewable sources provide about 8 percent of the nation's energy, according to the U.S. Department of Energy. Solar is the smallest share of that 8 percent - 0.08 percent of the whole - trailing geothermal, wind, water power and other sources.
The energy department measures solar power usage by looking at how many trillions of BTUs it generates each year. It has steadily grown over the last 50 years, though it dropped a bit in 2010.
In 2000, solar power generated 66 trillion BTUs. In 2006, it generated 72 trillion. In 2008, it shot up to 97 trillion and peaked at 109 trillion in 2009, the energy department said. It dropped to 104 trillion BTUs in 2010.
Government dollars are driving some local solar projects. Some have attributed the rising cost of oil and other fuels as a reason solar panels have grown in popularity over the long term.
"I'm not this altruistic green guy who would have done this no matter what. I'm a businessman and the numbers had to work," Bob Weaver, owner of Pottsville's Bob Weaver GM Superstore, said Thursday. "If the numbers didn't work, I couldn't have done it."
Last year, Weaver installed 502 solar panels atop his two buildings at 2174 W. Market St. The project cost about $600,000, but government clean energy grants and renewable energy tax credits picked up about two-thirds of the cost.
"They've exceeded our expectations by about 15 percent," Weaver said of the panels' performance over the last 12 months. "They cover about 25 percent of our energy usage. It's been a good return on investment."
Weaver said he and his employees "don't even know the panels are there" and there is no noticeable change in electricity from previous years.