How much can I save on my energy costs by switching to solar energy on Maui?
The sun. Ka la. The center of our solar system, its power is truly something to behold (just ask any tourist who forgot the reef-safe sunscreen back at their hotel during their first day at the beach). The islands of Hawai’i typically receive over 3,172 hours of sunlight annually, providing all living organisms with the sustainment and illumination that they require in order to thrive.
The increasing global shift towards harnessing renewable energy sources brings the power of the sun further into focus, something we know a thing or two about here in Hawai’i. While fossil fuel energy sourcing and consumption rates dictate the overall price of electric energy, solar energy derived from ka la has already been shown to achieve grid parity, defined as the point at which the cost of alternative energy becomes equal to or less than electricity from conventional energy sources such as oil or power plants.
As we know, worldwide reserves of fossil fuels won’t last forever, and that will lead to ongoing and exponential increases in your energy costs. Investing in renewable energy sources isn’t only a sound financial decision – it’s an investment towards a greener, brighter future.
Just how much can solar power systems save consumers in Maui County? Our islands are basking in the sun for 276 days on average per year, much higher than the annual US average of 206 days per year. As a result:
- Solar panel installation in Maui County can reduce your electricity bills significantly.
- Property values can increase by up to 5% after installation.
- Once you pay it off, it’s yours! A photovoltaic system will continue to generate free electricity, while those tied to conventional energy sources will continue to pay month after month.
How much does solar panel installation cost in Maui County?
Investing in solar energy on Maui costs around half as much as the median price in the United States. On average, solar panel installation equates to around $3.00 per watt. For example, the cost of a residential 5 kW “turnkey” solar system in Maui County totals around $16,000 on average before rebates and incentives are deducted.
What was that about incentives?
Glad you asked! To encourage residential, commercial, or utility-scale investors to switch to solar, the government has established policies that drastically reduce the initial investment required to utilize solar energy:
- The Federal Solar Investment Tax Credit (ITC) can lead to a 26% reduction for the complete solar panel installation cost if utilized before 12/31/2023
- The Renewable Energy Technologies Income Tax Credit (RETITC) amounts to a possible 35% savings off the complete solar panel installation cost
So how much can I save with solar energy?
The typical residential electricity rate amounts to around $0.37 per kilowatt hour (kWh). Monthly, that means an average household is paying roughly $200 for their electricity usage. Extrapolated over one year, that same household is giving $2,400 annually to the electric company. Depending on the type of solar system installed and average monthly energy consumption, it’s possible to cut your monthly bill by over 90%! That’s some serious savings. Give us a call today for your free solar consultation, we’d love to welcome you to our ‘Ohana and help you turn the awesome power of ka la into a major investment to your home or business.