Decarbonize Your house
The Path to Zero Emissions Requires Household Electrification  - #electrifyeverything

·       When it’s time to update your appliances, switch to Energy Star rated electric.

·       Like gas powered cars, electric appliances are replacing gas.

·       Electric appliances have far less fire danger because there’s no open flames & no Carbon Monoxide.

·       Buy an electric Induction stove. They outperform gas in terms of temperature control and speed and use LESS ENERGY than gas.

·       Induction is also much safer because the burner never gets hot enough to start a fire or burn skin.

·       Lower your household electric load. Consider installing/replacing light fixtures with EnergyStar rated.

·       Switch to 100% LED lighting. Do this yesterday!

Reasons to Go Solar

·       Energy Independence

·       Everything is being electrified

·       Utility Power is incredibly inefficient & polluting.

·      Hedge inflation! As utility rates go up, a home with solar saves even more $.

GO SOLAR OPTIONS: Invest in Community Solar – OR – Install Solar on your roof

·       Invest in Community Solar! Anyone can join. You do not have to be a homeowner!

·       Minnesota has the best Community Solar programs in the Country!

Solar Purchase, Payback & Return on Investment Basics:

·       The average U.S. household consumes about 11,000 kilowatthours (kWh) per year. This is a fairly large rooftop solar array.

·       11kW = 11,000 Watts

·       A 11kW PV system will produce 14,500 kWh annually on average (nrel.gov)

·       14,500 x our utility charge per kWh ($0.12) =  $1,740 savings per year.

·       Xcel Energy pays a homeowners for the electricity they generate for 10 years

·       Xcel pays customers $0.07 per kWh of energy generated.

·      14,500 kWh x .07 = $1,015 earned for 10 years additional savings

Thus, we arrive at 1740 + 1015 = $2755 annual savings. HOLD THIS THOUGHT!

Total System Cost

·       11,000 Watts x $3 per watt (regional solar installation estimate) = $33,000

·       There is currently a 2021-2022 26% Federal Tax Credit for Residential Solar Systems.

·      $33,000 x 26% = $8580 tax credit savings = $24,420 Total system cost after Tax Credit

Additional savings due to inflation of utility rates – let’s assume 3.5%/year inflation

·       Savings at year 5 with est. 3.5% Inflation = $2067 (you’ll be saving roughly $61 bucks per year)

 Simple Payback 20,350 / $2067 = 9.8 years

 Simple Payback including Xcel Rebate ($1015 yearly) = 6.6 years ($20,350/3,082 = 6.6)

If you own an investment property and install solar, you can depreciate the total cost over 5 years, which means your payback is even faster than 6.6 years. I did the math with my accountant with a hypothetical 8 kW system on an investment property. My payback was about 5 years. In short, the system cost was cut down 50% in year 5 of ownership.

CONCLUSION:

Utility rates will always rise. Making your own electricity is a hedge against the future increased costs of electricity and it makes your property more valuable.