Quote:
Originally Posted by ToddF
How much electricity you use does not affect the payback of solar energy, ironically (unless you have a peak use of 40 kW in Minnesota).
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In Terms of "energy payback (it takes X amount of energy to create a solar system, and the system will produce Y amount of energy over it's lifetime)," it doesn't play a factor, but if you are looking at payback on the cost of a solar system, it is one of the largest factors if the utility company uses a tiered rate structure.
Many Electric utility companies use what is called a tiered rate structure to charge for electricity - the more you use, the more it costs. During a billing cycle, you are allotted a certain amount of power at the cheapest price. Once you exceed that amount, the price increases. The more you use, the more it costs, and thus the average price for electricity increases. The higher your average cost is, the more attractive a grid connected solar system becomes.
