With the continued interest in clean energy, more homeowners are tapping into the power of the sun for electricity.
While concern for the environment is noble, there’s another reason people decide to go solar. They believe there’s a potential to save money.
How much do you save with solar panels? In today’s post, we’ll talk about how going off the grid could help you keep some cash in your wallet.
What Does Your Household Pay for Electricity?
One reason most homeowners have an interest in solar energy is the potential to save money.
How much do solar panels save on electricity bills? To answer that, you’ll need to determine what you pay now for service. To start, take an average of your monthly electric bill.
Depending on where they live, Americans average between $77 and $168 per month for electric service. Knowing your average cost helps, but you need to drill down a little further and figure out your cost per kilowatt-hour (kWh). Look at the breakdown for your utility bill to find the number.
If you’re like most homeowners, you feel frustrated when you read your electric bill, especially when you realize prices for electricity aren’t going down.
How Much Do You Save with Solar Panels Today?
Before you invest in solar panels, you’ll want to estimate your cost savings. Several factors go into figuring out your savings, including:
- Amount of Electricity You Use
- Size of Your System
- Own vs. Lease
How much money you can save also depends on how much power your system can generate. Both the direction of your roof and the amount of sunlight that hits it determine a solar energy system’s capabilities.
Other critical factors to consider are the current rate your utility provider charges for electricity and how much they’ll compensate you for any excess energy you send back to the grid. Try using a solar energy estimator to help determine your potential savings!
Don’t forget the tax incentives offered by the federal government. Even though the incentive is smaller in 2020, you’ll still get a credit, which saves on the initial cost of installing your system.
How to Go Solar
Once you decide solar energy will work for you, you’ll want to partner with someone who can help you get up and running. You can’t just pop a few solar panels on the roof and flip the switch.
There’s a process of converting your home from dependence on the grid to solar energy.
Once you determine the correct size for your system, it should only take a few days for your installer to get it installed.
Have More Questions about Solar Savings?
As you can see, answering the question of how much do you save with solar panels depends on several factors. The electricity rates in your area, compensation to you from your energy provider, and how much energy you use all figure into the calculation.
If you’ve enjoyed reading this post, or have more questions about ways you can save money, we invite you to check out our archives. You’ll find a collection of posts on a range of topics for homeowners.