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Payback
Time Period Renewable
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Payback is the number
of years it takes for your electricity savings to equal the system's cost
and maintenance. Once you have
estimated your system's kilowatt-hour production, you need to determine
your annual kilowatt-hour (not dollars but kilowatt hours) use of
electricity. This is normally available from your electric service
provider. Use an average of two years consumption for this figure. Next look at the cost
of your electricity. Again, look at the rates you have paid over the last
two years and get an average. It does fluctuate. Now add at least 2.5¢
per year for cost increases. That is the average increase based on many
past years. Increases will probably be much larger than that in the
future. If you live in an
area where net metering is not available, the payback for your system will
take longer. Energy-efficiency then becomes a major player in your payback
time. You certainly need to
make your home as energy efficient as possible. However, it is not
necessary to do your energy-efficient improvements before installing
renewable energy or even do it in the same year. It is important to
get a plan for both energy efficiency and renewable energy installation
from a professional, then stick to it. Back to Economics
Directory For
further information about Renewable
Energy or this area of Texas
contact Terry
Jensen Renewable Energy & Green Services
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