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In principle, it is simple to determine whether installing solar power for your home makes financial sense.You’ll need to figure out:
How much it will cost to install a solar power system, how much energy it will produce, and how much you would normally pay for the same amount of energy.
How long it will take for your initial investment to pay for itself in lower energy costs. Whether the system will pay for itself in five years.You will need to carefully consider whether you will need to borrow money or put off saving for the system in order to afford it.
However, things are not as straightforward in practice.The costs and benefits of installing solar power for two homes—even if they are neighbours—can be drastically different due to the large variation in each of these factors.
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The amount of energy your system will produce and when it will do is the main thing you’ll need to take into account when doing your calculations. Even for experienced solar engineers, this calculation may be extremely challenging. However, let’s go over the fundamentals.
The levels of solar irradiation that are available in the area around the home are one of the most important factors to take into account.in other words, how sunny your neighborhood is. While proximity to the equator is generally preferable when using solar panels, other considerations must be made.
The orientation of your home is equally important: The National Renewable Energy Laboratory (NREL) produces maps that show the levels of solar irradiation for the United States, and the tools on its website provide detailed solar information for specific locations within the United States. A south-facing roof with no trees or other obstructions to the sun maximizes the amount of solar energy available for rooftop arrays. Panels can be installed away from the house on external supports if this is not possible. However, this requires additional hardware and cable costs.
The system’s size must also be taken into account. The theoretical electrical output potential of a solar panel is expressed in watts.However, the capacity factor, or actual output, of installed PV systems typically ranges from 15% to 30% of the theoretical output. 6 At a capacity factor of 15%, a household system with a capacity of 3 kilowatt-hours (kWh) would produce 3,942 kWh per year, or roughly one-third of what a typical American household consumes in electricity.