How Much Will I Really Save On My Electricity Bills Every Month?
How much do solar panels save?
Solar panels aren’t just good for the environment – you can benefit from serious savings over the lifetime of your solar panel system.
How much do solar panels save? Do solar panels really save you money?
The simple answer to the question “do solar panels really save you money?” is yes.That being said, the amount you are going to save depends on a number of factors. Direct hours of daily sunlight and your roof size and angle are both important, but local electricity rates play a major role in determining how much solar you can save.
With so many trendy investment opportunities available in today’s day and age, it’s easy to be skeptical of new products that boast promises of “saving you tons of money.” Solar panels are no different–saving money by reducing your electric bill is one of the main appeals and selling points for solar as a product and home upgrade.
How much money do solar panels save you on electric bills?
The first step to understanding how much solar can save you is to measure how much energy you currently spend each year. The average annual electricity usage needed for a U.S. household, for example, is 10,972 kilowatt-hours (kWh). Multiply that by the October 2019 national average energy cost ($0.1284 per kWh), and you will find that the typical American family spends just over $1.408 a year on electricity alone.
You then need to understand the volatile nature of electricity prices and assess what service rates will be in the coming years. By comparing utility electricity costs with home solar, you should bear in mind that you can expect annual increases in electricity rates. National electricity costs have risen at a rate of about 2.2 percent per year over the past decade. Inflation of the utility rate is an added incentive for solar: When you generate your own energy using a rooftop PV system, you are constantly locking up energy costs so that you no longer have to consider variable utility rates.
Due to the nature of solar as an up-front investment, the only costs associated with a solar system will be the cost of your installation and any extra electricity costs in case your panels do not completely cover 100 percent of your electricity usage. If your system can completely offset your electricity needs is determined primarily by how precisely you measure your photovoltaic device–you can calculate how many solar panels you need to secure the percentage.
The following data provides state-by-state data for 20-year solar savings projections to provide a snapshot for average bill savings from a solar installation. The data integrates numerous hypotheses:
- System size: 6 kilowatts
- Electricity demand: 10,972 kilowatt-hours per year (the national average)
- Utility rate inflation: 2.2%
- Percent needs to be met by solar panels: 94% (EnergySage marketplace average)
- Electricity rate: State average as of October 2019 (according to EIA)
- Ownership of the solar panels is assumed
Do you still have an electric bill with solar panels?
Yes, when you install solar panels you’ll always get an electric bill. Importantly, the bill may not ask you to pay anything, and may simply state how the net metering credits for the month cover your use. In the event that you provide more power to the grid than you borrow, usually, your utility can carry over your unused bill allowances to the next month for you to take advantage of. Nonetheless, installing solar panels will almost certainly lead to lower monthly average electric bill costs, and may in some cases eliminate your monthly electric bill.
Considering Going Solar? Solar Harmonics is Here to Help
Most of our clients are looking for a company they can trust to help them go solar. Based on our decade in business, online reviews, and Diamond Certification, Solar Harmonics is the best choice to trust to complete your solar project on time, on budget, and with the expected results. It is our mission to design the best value solar panel system that produces reliably over the next 30 – 40 years, and saves the most money for our clients. If the financial goals of our clients intersects with the global and environmental goals of our founder, it is a win for everyone except the utility companies. Contact us today for your free quote!