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How Much Do You Save With Solar Panels? A Basic Guide

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Are you interested in solar energy?

Around 4% of American households use solar energy to power their homes. Experts say this figure will triple by 2030.

The lower costs of going solar and the promise of savings urge more people to install a solar panel system for their homes. The benefit for the environment is also a huge factor.

However, how much do you save with solar panels? The amount depends on your electricity consumption and other factors. Keep on reading to learn more:

Electricity Costs

How much do you save with solar panels? To determine the value, you first have to consider your current electricity bill.

The average electricity consumption of an American household is 10,694 kWh every year, or 877 kWh per month. Multiply that by $0.13 to get $114 monthly. The former is the national average electricity rate per kWh.

If you install a solar panel system with enough electricity supply, you’ll save $114 per month. It equates to about $1,368 per year. As the electricity prices go up annually, you’ll save more.

However, the electricity rate and consumption aren’t the same for every household. You have to calculate it by looking at your past utility bills and calculating your consumption. Check how much your electricity costs per kilowatt-hour.

Cost of Going Solar

The figures above don’t consider the solar panel cost. You’ll have to pay for the solar panel installation before getting the benefits. The maintenance and repair costs can also add up.

As this writing, the average cost is about $2.4 per watt. A 6 kW system costs about $14,400. The price can drop by 26% thanks to the federal solar tax credit.

Take advantage of rebates and other incentives in your area to further lower the price.

The good news for consumers is a lot of financing options allow you to pay for the system over several years. Some schemes also offer zero down payment options. It makes the transitions to solar power easier.

It results in lower savings, but you’ll still pay a lower rate monthly. After you finished paying for the system, you’ll have even bigger savings.

Other Options

You can also explore other solar options, like solar leases or power purchase agreements (PPAs). With these, you don’t have to pay for solar installation and equipment. Instead, you pay a fixed monthly amount for the rent.

In the long run, it’s more expensive than buying solar panels. Still, it’s easy and cheaper than paying for electricity.

Learn How Much Do You Save with Solar Panels Now

You have to crunch up some numbers to learn how much do you save with solar panels. According to the trend, you’ll always have some savings regardless of your chosen option for going solar. Do more research to see whether it’s the right choice for you.

Are you looking for more helpful guides? Visit our website today to learn more.

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