The Pros and Cons of Converting to Natural Gas vs Solar Power: A Detailed Analysis
When it comes to reducing your home energy costs, you might be considering the switch from a total electric system to a natural gas furnace and water heater, or exploring solar panel options. This detailed analysis will explore the financial benefits and drawbacks of both options, providing a comprehensive guide to help you make an informed decision.
1. Converting to Natural Gas Heating and Water Heating
Converting your 1700 sq.ft. manufactured home to a natural gas-powered furnace and water heater can yield significant savings in the long run. Let’s break down the potential benefits and considerations.
Benefits of Total Electric to Natural Gas Conversion
Reduced Monthly Bills: On average, your monthly electric bill is $177. By switching to a natural gas furnace and water heater, you could see a substantial reduction in these costs. For instance, with a 10-panel solar system, you can reduce your bill to $150 per month, which, if financed at a 150 monthly payment plan, would be paid off in three years.
Long-term Savings: After three years, your payment drops to $27, and you wouldn’t have to pay for gas. Over a 10-year period, you could potentially save thousands of dollars compared to your current electric bill.
Eliminating Dependence on Grid: You would no longer be relying on the grid for heating and hot water, providing a level of energy independence.
Considerations and Calculations
The numbers mentioned here are rough estimates based on general assumptions. Actual savings will depend on your specific location, current rates, and usage patterns.
Initial Investment: A 10-panel solar system could cost around $5500, including interest. But with a 150 monthly payment, it would be paid off in three years.
Comparison with Current Costs: If your current electric bill is $177 per month, switching to a natural gas system could save you $27 per month after the payment is covered, resulting in a net savings of around $177 per month after three years.
2. Using Solar Power for Your Home
Financial Breakdown
Many homeowners are turning to solar power systems as a viable way to reduce their electric bills. Here are some insights into the cost and benefits.
Initial Cost and Payback Period: We previously paid about $450/month for electric power. After installing solar panels, we were able to reduce that to $120/month, which paid for itself in 11 years. This is a great return on investment, especially if you live in an area with high electric rates.
Rate Structures and Rebates: The average US electric price is 12 cents per kilowatt hour, which equates to about 35 cents per therm (100,000 BTU). However, most electric companies offer significant discounts for all-electric homes or for off-peak usage. Natural gas rates are generally around half of this, but the exact savings will vary based on your location and service provider.
Customized Solutions: In your case, you live in New Hampshire with high electric rates and no access to natural gas. However, you’ve managed to reduce your annual heating and hot water costs by about $1000, thanks to an all-electric setup including hyper heat split and hybrid water heater. This setup is highly efficient and provides significant savings.
Personal Case Studies
For a home with a 1800 sq.ft. size and a 7KW solar array, the energy costs from May1 last year to April 30 this year were around $1500 for supplemental electricity and $200 for propane. This equation includes all household electrical usage, showcasing the effectiveness of a hybrid system.
3. Practical Tips and Recommendations
Efficient Use of Resources
Maximize Solar Investments: Opt for a system that is appropriately sized for your energy needs. This will ensure you get the most out of your solar panels without over-investing.
Energy-Aware Home Practices: Implement energy-efficient habits like using LED lighting, insulating your home, and using smart thermostats to further reduce costs.
Government Incentives and Rebates: Look for local and federal incentives to help offset the initial costs of solar or natural gas conversion.
Conclusion
While both natural gas and solar power have their advantages, the best choice depends heavily on your specific circumstances. If you are in an area with high electricity rates, converting to natural gas could provide significant immediate savings. Conversely, if you have access to incentives and prefer a sustainable solution, solar power may be the way to go. Regardless of your choice, ensuring you have the most up-to-date information on your local energy ecosystem is crucial.