## Calculate how much electricity does a solar panel produce in a year?

The amount of electricity your solar panels produce depends on the climate and peak sunlight in your area, the relative efficiency of the photovoltaic (PV) technology of your panels. More efficient panels may be little more expensive.

Energy produced / year = System’s kW X Sunlight hours/year X System efficiency %

## What is the capacity of the solar power system I Need?

To calculate the capacity of the solar power system you need, first find out how much electricity your household uses. Pull out your last electric bill and see how much kWh you use.

## What is your electricity requirements?

Let’s say that this number is 880 kWh per month. Now divide your average monthly usage by 30 to get your average daily kWh usage. In this case, it would be about 29.33kWh per day.

## Compare Electricity Rates, Cost of Solar Panels & Sun Hours by State

Solar Power System Savings depend on several factors, including your electricity usage, how high your electric rates are, how much sunshine you get, and financial incentives.

The following state by state table shows average electricity consumption for a house, average retail rates, utility bill, solar installation rate and sun hours.

However, it is important to keep in mind that these figures are just an estimate. Actual value may be different. Continue Reading →

## How to Calculate Solar Panel Payback Period

Curious to know payback time for your solar panel technology? In other words, how long does it take for incoming returns to cover costs? The solar panel payback period depends on many factors, including the cost of the solar system you need for your home, federal and state tax incentives available, cost of retail electricity in your area and the amount of sunshine available on your rooftop.

Payback in Years = Net Solar System Cost/Annual Utility Savings from Solar.

## What You Need to Know before going Solar Panels on Your Roof

Here are some things to Consider Before Installing Solar Panels.

1. Before installing solar, maximize the efficiency of existing systems on the house like insulation, windows, and appliances. Here is how to lower your electricity bill.
2. Check whether you have a suitable roof? Does your roof need repairs? How much weight can your roof handle? Does it face right direction to sun? Is there any shadow from a nearby tree branch?
3. Decide how much to invest, how to finance it and what are the incentives open to you. Continue Reading →

## High Electric Bill? Here’s How to Lower an Electric Bill

Here are some easy Ways to Lower Your Electric Bill by up to 40 percent.

• Lower Your Electric Bill by Sealing Air Leaks Around Your Home. Pay close attention to your home door and window frames, Attic entrances, Basement rim joints, Behind knee walls,Air ducts,Outlets and switches, Plumbing and utility access, Dropped ceilings for leaks. You may be losing money year round on air leaks. By correcting this leak, home can save homeowners anywhere from 5 to 30 percent per year in energy costs.
• Improve the Efficiency of your appliances and use it with care to lower Your Electric Bill. Continue Reading →

## Federal Solar Tax Credits

The solar tax credit allows you to claim a credit of 30% of the cost of installing a solar energy system located in the United States. Expenditures include labor costs for on-site preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home. This applies to both residential and commercial system.

## Who is eligible for the federal Investment Tax Credit?

• Existing homes and new construction qualify. If the installation is at a new home, the “placed in service” date is the date of occupancy by the homeowner.
• Both principal residences and second homes qualify.
• Rentals do not qualify.
• If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year.

The Congress passed a spending bill in late December 2015. Here are the details of the maximum allowable tax credit.

• 2016 – 2019: deduct30 percent of the cost of the system.
• 2020: deduct 26 percent of the cost of the system.
• 2021: deduct 22 percent of the cost of the system.
• 2022 onwards: deduct 10 percent of the cost of the system.