Financial Case for Solar Power
Historically, inflation has played a major role in the cost of Californians' Electricity. In the last 10 years alone, customers of California's largest utility provider, PG&E, have seen enourmous rate hikes. To Illustrate this point, lets take a look at the numbers for residential customers.
| Electrical Costs Under PG&E from 1996-2006 | ||
|---|---|---|
 |
||
 Average $/kWh |
 Top Tier $/kWh |
|
| 1996 | 0.12 | 0.13 |
| 1997 | 0.12 | 0.13 |
| 1998 | 0.11 | 0.13 |
| 1999 | 0.11 | 0.13 |
| 2000 | 0.12 | 0.13 |
| 2001 | 0.14 | 0.25 |
| 2002 | 0.15 | 0.25 |
| 2003 | 0.14 | 0.26 |
| 2004 | 0.13 | 0.21 |
| 2005 | 0.14 | 0.22 |
| 2006 | 0.16 | 0.37 |
| Source: PG&E - Download Residential Rate Tables | ||
As we can see , the average price per killowatt-hour has increased 30% since 1996. The top tier price of electricity has increased an incredible 185% - more than six times the rate hikes on the average price. This hits the people of the central valley hardest, due to increassed demand for large electrical loads like air conditioning.
If you'd like to know what you are currently paying for your electricity. Take a recent bill and divide your charges by the total number of killowatt hours used. Please keep in mind that because electrical utility providers charge on a tiered rate schedule (the more you use, the more it costs) your exact price per killowatt hour will vary from month to month - this will be most noticeable when comparing summer months to winter months.
The financial viability of owning your own solar system, from Acro Electric, is easily proven with these 3 points:
- PG&E customers currently pay between 11.4¢ and 37¢ per killowatt-hour depending on how much electricity is used, and are vulnerable to future rate hikes.
- People who generate their own electricity, with solar power, are protected from increases in electrical rates for the life of the system (30-40 years).
- The total cost of electricity generated by a solar system from Acro Electric averages 12¢-13¢ per killowatt-hour over the life of the system.
Above and beyond the electrical savings you will enjoy year after year, your new solar electric (PV) generator will have additional financial benefits, but you don't have to take our word for it. Wells Fargo printed a brochure in 2003 highlighting the best remodelling options for its customers- and this is what they said: "Based on a recent study by ICF Consulting (funded by HUD and the EPA) energysaving measures such as solar can add $20 of home value for every $1 of yearly energy cost savings. That makes an already bright idea really shine."
Best of all, the increase in your home value will be exempt from property taxes! Not only will you be immune to future rate hikes, but the rate hikes that most people dread will actually increase the value of your home. Solar power pays for itself from day one! A typical installation will immediately add more value to your home than you invested to put it in.
There are also tax benefits to owning your own PV system from Acro Electric. As an owner of a new residential solar system, you will get a $2,000 federal tax credit when you file your federal tax return, and if the credit exceeds your tax liability, the excess amount can be carried forward to the following year.
Solar power is affordable today, and is one of the best investments you will ever make. Are you ready to request a free solar analysis that will show exactley what a solar power system by Acro Electric, can do for you?
