The Cost of Energy

The average cost of energy per kilowatt-hour for the USA in 2008 was a little under 12 cents. Averages can, of course, be misleading. If you are in Hawaii you will pay closer to 36 cents and in Idaho your cheap energy costs you only 7 cents.

Why am I mentioning this?

The main factor for most people on whether to “go solar” will be the money they will save. The capital up-front costs for generating electricity by solar power can be quite high and a payback period of 20+ years in Idaho is not attractive to most people. A payback period of only four years for Hawaiians looks a better deal.

Your first step therefore is to find out your current energy costs. Electricity is billed by the kilowatt-hour (kWh). If a heater consumes 1 kilowatt ( 1000 watts) and the heater is left on for one hour then one kWh is used. Using a 60 watt light bulb for one hour consumes 0.06 kilowatt hours of electricity. Using a single 60 watt light bulb for one hundred hours consumes 6 kWh of electricity.

Your current electricity provider can tell you the current cost of your electricity. It may be on your bill but be prepared to look at the small print!