Financial Considerations
When evaluating the potential of installing a solar electric system at a home or business, considerations should include:
- Solar access: Oklahoma is fairly good in comparison to other parts of the country. Site-specific access depends on installing the system so it is not shaded. See your location on the back page map for average output.
- Retail cost of residential electricity: Oklahoma is low in comparison to many other parts of the country. A lower electric rate makes the return on investment length longer than a higher electric rate.
- Available incentives: Solar energy systems may qualify for a federal tax credit of 30% until 2019, 26% in 2020, and 22% in 2021.
- The total cost of the system: The average installed cost of residential solar photovoltaic (PV) is $2.89 per watt or $28,900 for a 10-kilowatt grid tie-in system. In addition, there may be other costs to consider, such as liability, homeowners’ insurance, and property taxes.
- The energy that is produced by a solar system that isn’t consumed will be credited back to the member based on KEC’s power suppliers’ avoided cost. This information can be found on the Western Farmers Electric Cooperative website.
Given the information listed above, evaluate your situation to ensure installing a solar system makes sense financially for you. Talk to your electric cooperative and qualified, reputable solar contractors to help evaluate your feasibility for solar energy.
Solar Map
This map is measured in kilowatt-hours per square meter per day (KWh/m2/day), which represents insolation, The total energy on a surface over a specific time interval. Examples use the location’s solar resource to determine average output and savings per year and were calculated using the National Renewable Energy Laboratory’s (NREL) PV Watts calculator using default settings, including inverter efficiency of 96 percent. For more information, visit the PVWatts website.
Your output may vary depending on site-specific factors and regular maintenance such as washing the panels several times per year. Output also may drop about 1% per year through the average 20 to 25-year lifespan of most systems.
Solar radiation (kWh per m2 per day): 5.20
Installation & Equipment cost: $28,900
Average kWh per year: 14,187
Average savings per year: $1,419
Estimated payback: 20.4 years
Example 2 – Central
Solar radiation (kWh per m2 per day): 4.89
Installation & Equipment cost: $28,900
Average kWh per year: 13,366
Average savings per year: $1,336
Estimated payback: 21.6 years
Example 3 – Southeast
Solar radiation (kWh per m2 per day): 5.15
Installation & Equipment cost: $28,900
Average kWh per year: 13,710
Average savings per year: $1,373
Estimated payback: 21 years