How it Works

Currently, your local energy provider supplies you with electricity that is billed by the kWh (kilowatt hour). This means that for every hour that one hundred 60 watt light bulbs are on, it consumes 6 kWh. The vast majority of the power supplied by the energy company comes from burning fossil fuels, which is expensive and emits carbon dioxide and other pollutants into our environment.

Today, you can install solar panels, also known as photovoltaic modules, in order to offset the amount of energy purchased from the electric company. Once the solar array is installed, it produces free renewable clean energy. For every kWh of electricity created by the solar array, an equal amount is subtracted from your monthly bill. With no emissions, no moving parts, and 20 year warrantees on the solar panels, solar power provides a reliable and environmentally responsible way to produce energy.

Components of a photovoltaic system include solar modules, inverters, a utility meter, and smaller balance of system components.

Savings can be recognized immediately in two ways: money saved by producing your own energy, and money received by selling Solar Renewable Energy Credits (SRECs). The average residential system will produce about 8,300 kWh annually. At a price of $0.16 per kWh, you would be saving $1,330 a year on your electric bill. With the price of electricity rising every year, the amount saved will increase as well.

SRECs are awarded for every 1000 kWh that a system produces. These SRECs have value on the open market, and can be sold as another way to recoup the cost of installation. With the average SREC being sold around $500, you stand to make over $4,000 over the course of a year from an average residential system.

These direct savings, along with other federal and state incentives, provide a practical way for people to use solar power even in today’s tough economy.