By Donna Cope
With home electric and gas bills going up every month, homeowners are looking for ways to modernize their homes with the latest in energy-efficient options. Some of these options may be expensive initially, but with the tax credits and future cost savings, the long-term advantages are definitely there.
Option #1 — Solar panel prices have dropped 20 to 30% over the last year because of the drop in material costs. How much would a solar panel system cost? Well, the average solar power system costs $8,000 per kilowatt. The average home could operate with a 4 kilowatt system. The federal tax credit will pay for 30% of the cost while state tax incentives averaging 25%, depending upon in what state you live. Another advantage is that the excess power generated by one of these systems can be banked and your utility will have to give you credit for any power you contribute to their power grid.
Option #2 — A solar hot water system is fairly inexpensive and also offers a quick payback. Solar heat collector boxes will be placed on your roof to preheat the cold water. The heated water will then flow to a special collection tank or directly to your existing hot water heater. The price for such a system could range from $4,000 to $9,000, before federal and state tax credits.
Option #3 — A geothermal system uses temperatures beneath the earth’s surface to produce heating and cooling for your home. Water filled pipes run beneath the ground and extract heat in the winter months and cool in the warmer months. For an average size house, the costs for such a system can range from $15,000 to $20,000.
Option #4 — The amount of space available to you will determine whether or not you can install a wind turbine at your home. Typically it will require half an acre of open land and wind speeds that average 12 miles per hour. The average tower is 80 feet tall. A 4 kilowatt system which will power an average house will cost around $18,000 before the tax credits are factored in.
So, if you have the money and are patient enough for the investment to pay off, now is a great time to consider adding some extra energy efficiency to your home power system.
I am an accountant by profession and have other interests including writing articles and collecting contemporary art glass marbles. Check out my latest website about antique clock parts at http://www.antiqueclockparts.net
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