How do I know if I should install solar panels?

How do I know if I should install solar panels?

There are a couple of things to look into when considering installing solar panels:

1. Space. Almost any roof of a house has enough space to install the number of panels required.

On the other hand, it is very difficult to install them in an apartment since the roof space is usually common area, plus you would need a very long wiring to bring the power from the roof to your apartment.

2. Your electricity consumption. Although the best thing we could do as a society is for everyone to generate their own energy, we must take into account the savings that it would bring to each family.

If your main motivation is to contribute to the environment, it is a matter of having the space, and that’s it! If your main motivation is saving, solar panels are suitable for people whose electricity bill exceeds $1,000 pesos.

If your electricity bill is above that amount, solar panels will help you significantly reduce this cost at home.

Why is it better for some people to install solar panels on their home than others?

Why is it better for some people installing solar panels on their home than others? To answer this question, we must first understand how the CFE residential rate works.

In Mexico there are 7 residential rates that are defined by the average temperature of a region. The warmer a region is, the higher the limit of the subsidy, since they most likely need more use of air conditioners or climates.

The consumption limits to maintain the subsidy and pay less for electricity are:

  • Rate 1: 3,000 kWh per year.
  • Tariff 1A: 3,600 kWh per year.
  • Rate 1B: 4,800 kWh per year.
  • Tariff 1C: 10,200 kWh per year.
  • 1D rate: 12,000 kWh per year.
  • Rate 1E: 24,000 kWh per year.
  • Tariff 1F: 30,000 kWh per year.

If the sum of your consumption in the last 12 months is greater than this limit, you will lose the subsidy and your rate will be classified as DAC.

What is the DAC fee?

The High Consumption Domestic Rate (DAC) is a residential rate where the user no longer has the subsidy for their high electricity consumption and is applied to all their consumption, not just the surplus.

This causes the cost of energy to be up to 5 times more expensive than when you have a subsidy.

The easiest way to know if you are in the DAC rate is by your electricity bill, since the charge will be very high and the receipt will show “DAC” in your rate.

The cost of a subsidized rate per kWh (kilowatt/hour) is less than 1 peso in the first step, while the DAC rate costs around $5 MXN.

In addition to the high cost, when you are in the DAC rate, your bill will arrive with a fixed charge for consumption that is greater than $100 MXN, regardless of your consumption.

How to get out of the DAC rate and return to a subsidized rate?

There are two ways to obtain the subsidy for a new account:

1. Reduce your consumption. It means making radical changes in your lifestyle; you can unplug appliances, change your lighting for saving bulbs and limit the use of certain appliances.

2. Generate your own energy. By installing solar panels, you will consume the energy that you generate yourself, so the consumption of the network will be radically reduced.

How much can you save with solar panels?

Now that you know why the cost of electricity in your home rises and becomes one of the most feared expenses, it is time for you to consider a plan B.

You must take as a starting point that the reduction in the amount to be paid is not immediate, but gradual.

If you generate all your energy or disconnect your entire house, on the next bill you could continue with the DAC rate until the sum of your consumption for the last year is less than the DAC limit.

Once this happens, you will see a drastic decrease in what you pay for energy.

For example, suppose that an electricity bill of $3,000 MXN every two months arrives at your house. In this case, the ideal is to install at least 4 solar panels that require only 10 m² on your roof.

Once you start generating your own energy with solar panels, your electricity bill will decrease by approximately half. Once you manage to get out of the DAC rate, your bill will arrive at only $290 MXN, approximately.

The first year your savings will be approximately $12,500 MXN. For the second year, when all your network consumption is at a subsidized rate, your savings will be more than $16,000 MXN annually.

The DAC rate grows more than 10% per year, but we cannot know exactly how it will behave for the next two decades.

By having solar generators, you will no longer be susceptible to this price increase. We know that the DAC rate will grow by at least 4% annually, so your savings in the next 25 years could be more than $700,000 MXN if you pay $3,000 MXN every two months today.

Imagine what you could do with that money! Do you want to know how much you can save with solar panels? Find out in less than two minutes how much the savings would be on your electricity bill with the solar power calculators, in which you can enter what your current rate is and how much you can save.

Historical data of solar panels

As a curious fact before entering fully into the subject of solar panels, we must give credit to the heads behind this invention and the evolutionary dates.

French physicist Alezandre Edmond Becquerel discovered the photovoltaic effect in 1839. That is, the ability to convert solar energy into electricity.

In 1885, Professor W. Grylls Adams experimented with selenium and discovered that when it reacted with light, a flow of electricity known as photoelectricity was generated.

In 1893, Charles Fritts built the first solar cell. In its early days, this cell had an efficiency of only 1%.

Albert Einstein in his writing of 1905, discovered that when illuminated with violet light, photons can remove electrons from a metal and produce electric current.

In 1953, Gerald Pearson of Bells Laboratories accidentally created a more efficient photovoltaic cell using silicon.

In 1954 Daryl Chaplin and Calvin Fuller improve solar cells and start the production of solar panels for space satellites.

In 1958, the Vanguard I satellite was launched into space. It was the first application of solar cells as an auxiliary power source. To this day, Vanguard I is still in orbit.

In the 70’s the use of solar panels for the public begins. To date they continue to be perfected.

Solar panels are an option for saving and environmental care that has been very well received in the country and year after year, more people decide to implement this renewable energy in their homes.

The solar industry in Mexico has had significant growth: only in 2018 solar roofs in the country grew 60% and it is expected that by 2023 it will grow 585%, with 650,000 solar roofs in the next 4 years.

If we continue down this path, the country will be able to achieve cheaper energy and reduce its carbon footprint.

What is the cost of solar panels in Mexico?

As we mentioned before, solar panels represent an important saving in your life, but also an investment.

The first thing you should know is that during the last 8 years, the cost of solar panels has decreased by 80%, making this technology much more accessible to people.

In the price you must consider components such as the pure sine wave inverter -which helps transform the energy from the panels into electricity for your home-, the cables, the pipes, the panel mounting system and the labor for installation.

The cost for each panel is approximately $10,000 MXN, already considering the other components and labor.

A solar panel system is like a fingerprint, there are no two identical ones since depending on your energy consumption and the solar access of your roof is how it will be calculated how many you need.

The price varies depending on the number of solar panels and their quality; remember that this point is very important, since they will be in your home for more than two decades.

For this reason, it is difficult for a good solar panel company to give you the cost without knowing your electricity consumption and the conditions of your property. It is as if a doctor prescribed medicine without first making a diagnosis.

A professional solar panel company will be able to give you the total price of the system, including all components and their service, not just the cost of each panel.

By hiring a company specializing in the sale and installation of solar panels, you can guarantee that the design of the solar panel system and its installation are the most suitable for you.

Let an expert tell you how many solar panels you need and their cost, since this can vary due to different factors.

The most solid solar companies offer you payment methods that allow you to purchase solar panels without having to empty your wallet. You will see that it is more convenient than you imagine.

Payment Methods

Installing solar panels should not represent an economic burden, on the contrary! Its nature allows you to generate significant savings. That is why there are different purchasing methods that will allow you to enjoy solar energy:

1. Direct purchase. If you are a person used to paying your credit cards in full and do not like to owe money, direct purchase is the option for you.

2. Monthly payment. Monthly payments also apply to solar panels. These payments are usually in 12, 18 and 24 month plans on certain credit cards.

3. Financing. There are other options such as financing, an alliance between the solar company and a bank that benefits you so that you can acquire your solar panel system with only a 10% down payment and monthly payments in the term that you choose.

With this scheme you can start generating your own energy and your monthly payments can be less than your current electricity bill. Imagine that!

Here we leave you a very reliable option so that you can see in less than 2 minutes and first hand, how many solar panels you need and receive a quote tailored to your needs.

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