Solar Energy: Does Going Solar Save You Money?
The most exciting thing that comes to mind when choosing whether to go solar is the “solar saves money enticement.” But can solar panels save you money? The most straightforward answer is yes. You’re curious to know how. Right? That is what we’ll be discussing in this article, and by the end, you’ll have discovered why going solar is a wise decision to take before the end of 2020.
First things first, stats show that electricity costs increased by 2.2% per annum over the last decade, and you would expect this trend to continue. On the other hand, the upfront cost of installing solar panels is going down. For example, switching to Tesla Solar Roof is even cheaper than the standard tiles and saves on the electric utility bill.
How Much Can Solar Panels Save You?
Besides cutting electricity bills, how much producing solar energy at home will save you depends on a number of factors. They include:
- Initial installation cost
- Geographical location/direct sunlight hours
- Local electricity rates
- Energy needs of your home
- The size of your pool
Solar panels can easily offset your monthly power bill, if not eradicate it. However, the higher the energy needs of your home and the local electricity charge rate, the less the savings.
Let’s do some quick math to ascertain how cutting your electricity bill will save you money. An average American household consumes 11,000 kilowatt-hours annually, and the national average cost is $0.1301 per kWh. That means a typical American home spends about $1,430 annually on electricity alone; 20 years would equate to $28, 600.
An average household requires a 6kW solar system, which costs about $13,000. The solar system is expected to offset approximately 50% to 90% of the electricity bill. So over that span of two decades, we are talking about over $10,000 in energy savings. What can you possibly be able to do with such a considerable amount of cash? Maybe it would go to your pension savings, emergency savings, or even your kid’s education savings account.
How else does Solar Energy Save Money?
The federal government offers tax credits of 26% as of 2020. Therefore, if you reside in a place with high electricity rates and a fit solar rating and can pay for the initial investment, you can then easily save money. The federal tax credit rate is expected to drop to 22% by 2021 and cease to exist from December 31st, 2021. So, the sooner you take the advantage, the better.
With battery storage options, you have an excellent way to store power during the day to use at night. State-of-the-art battery technologies such as Tesla Powerwall will mask you from grid-outages or blackout. Powerwall automatically detects grid power outages and becomes the main energy source for your home.
Nonetheless, solar panels won’t completely offset your bills. A more exhilarating fact is that you can sell the excess energy back to the grid, and in return, you get electricity credits. This net metering policy is a great alternative to batteries since you can draw power from the grid at night without paying extra, provided it doesn’t surpass the amount you supplied. Therefore, you pay only for the small amount you used outside of net metering if any.
What is the Cost of Installing a Solar System?
The cost of installing a solar system at home is going down, unlike previously where you had to pay hefty sums. This is due to the tax credits, government incentives, and technological advancement in solar manufacturing.
The size of the system you want to install is the determinant factor for the initial cost. A 6kW solar energy system can serve an average American home. Compensating the tax credits, you can expect to pay about $13,000. You would also want to check if the local government in your location got any incentive program to reduce costs further.
Solar Panels also increase the value of the property. Hence, if you decide to sell your home or relocate in the future, you’ll be paid higher than if there existed no solar system.
Ready to Go? Go Solar Power is Here to Help
Go Solar Power helps homeowners realize clean energy goals by creating customized packages that are financially and environmentally beneficial. Our partnership with the best Solar Lenders enables you to utilize our loan program seamlessly. You can sit down assured that Go Solar Power will be available to service your solar needs.
With over 10 years of experience, our team is committed to make your dreams of an energy-efficient home a reality. Call us at (800) 530-9597 or contact us today to learn more.
