Solar Energy Basics and Frequently Asked Questions
In a bid to reduce energy costs and lower exposure to price increases, a homeowner in the city has installed a 7.4 kW solar panel system. Comprising 20 panels, the system generates energy through the day and sells excess back to the electric utility company.
The kilowatt-hour (kWh) is the unit used by many electrical utility companies to measure energy use. A 7.4 kW solar panel system, under optimal conditions, can generate around 7.4 kW × peak sun hours of energy per day. On a sunny day with about 5-6 peak sun hours, this would mean roughly 37 to 44 kWh of energy generated, while on a less sunny day with fewer peak sun hours (e.g., 3-4 hours), the system might produce only about 22 to 30 kWh.
The key factor influencing daily energy generation is the number of peak sun hours, which depends on weather and location. Systems with power optimizers or microinverters, such as those using SolarEdge or Enphase technology, can mitigate losses from partial shading or dirt, but overall energy generation still scales with sunlight availability.
The system's installation was carried out by a licensed installer who obtained the necessary permits. The panels were mounted on the roof either by bolting the panel racking to the structure or using ballast for weight. The cost of the system is about $2.30 per watt that the system is able to generate.
While the system is not designed to meet all of the household's power needs, it is estimated to produce between 450 and 1200 kWh per month, depending on sunlight conditions. On a sunny day in June, the system generates approximately 45 to 50 kWh per day. The average daily energy use is 25 to 30 kWh, and the system currently sells about 20 kWh back to the electric utility company on a sunny day.
The system's strategy is to keep the household out of a higher rate usage for the year rather than generating enough for all of its power needs. The homeowner will benefit from a fixed portion of their power bill and reduced exposure to price increases.
It's worth noting that there are no rebates or tax incentives available in the jurisdiction for solar panel installation. However, the installation of solar panels may be eligible for government programs that encourage clean energy in other locations. The solar panels are estimated to last for about 30 years in the city's climate.
The system is expected to pay itself off in 15 to 17 years at current rates. The homeowner is optimistic about the long-term savings and environmental benefits of their investment in solar power.
- The homeowner's solar panel system, which is part of environmental-science and technology, generates energy during the day and aids in personal-finance management by selling excess energy back to the utility company, reducing exposure to price increases and lowering energy costs.
- In this scenario, personal-finance can benefit from clean energy solutions like solar power, as the system's estimated energy production of 450 to 1200 kWh per month under varying sunlight conditions leads to a reduced portion of the homeowner's power bill.
- As the solar panels are designed to last for about 30 years in the city's climate, this long-term investment in science-based climate-change solutions like solar power is expected to pay off in 15 to 17 years, providing both financial and environmental benefits to the homeowner.
