We couldn’t help but notice this week that SDG&E is planning to raise electricity prices another 7% — one of the largest rate increases in the company’s history, by the way — while the price of solar energy continues to drop and is currently at an all-time low.
One way to answer the question is to point out, first of all, how much utility power actually costs.
If you’re spending $200 per month on electricity (not unusual in San Diego), that’s $2,400 per year or $24,000 in 10 years — and that’s if prices don’t go up.
But if SDG&E rates do go up at 7% per year (as noted above), your 10-year cost of electricity is $33,000 — not $24,000. Key question: What sort of return do you get on that “investment?” (They let you keep your lights on?)
Here’s how solar compares…. for about what you will spend with SDG&E over the next 7 years, you can OWN a system that provides over 95% of your needed electricity — for the next 30+ years! (That’s like getting free electricity for 23 years!)
At the same time, that solar energy system adds new asset value to your home, value you can re-coup if you decide to sell your home… because now you’re selling a house with zero electric bill. One study said that home value goes up by $20 for every $1 in annual energy savings, just due to your avoided cost.
So, this nifty device that helps you avoid $2,400 in annual energy payment to the utility… also adds $48,000 in new home value to your bottom line, more than doubling your payback.
So remember, as you keep hearing about SDG&E rate increases — and paying those ever-increasing electricity bills — sometimes the price of doing nothing is just too high.
If you’d like to find out what sort of solar investment would work best for your home, give us a call or fill out the form on this website. And we’ll show you how to really put your money to work!