Year after year, traditional home electricity prices are getting higher. It’s an expected truth that our electricity rates will increase, even when our incomes do not. With all of the discussion about alternative energy sources, you may have started to consider going solar in your home and business to save money.
Many consumers, like yourself, wonder if installing solar panels will truly save money by reducing their utility bills? Will the cost of going solar make sense in the long run, or is solar just another home improvement fad?
The demand for residential electricity has been steadily increasing for years. Since the Covid-19 lock downs of 2020, more people are at home, many now working from home. That change is causing individual utility bills to rise even faster than the expected rate, with increased use.
More people working from home also increases strain on the electrical grid, further destabilizing the electrical grid as time goes on. Installing solar panels helps greatly reduce your reliance on the grid and reduces your household’s strain on the grid.
Solar panels generate electricity that powers your home, offsetting the need to purchase electricity from your utility provider. By generating your own power, you’ll see a noticeable reduction in your monthly electricity bills.
The more solar energy you produce, the less you’ll rely on the grid, ultimately resulting in substantial savings over time.
Net metering allows you to earn credits for the excess electricity your solar panels produce and feed back into the grid. During high solar energy production, your excess power is sent to the grid, and in return, you receive credits on your utility bill.
These credits can be used to offset the cost of electricity you draw from the grid when your solar panels aren’t producing enough energy, usually during nighttime or cloudy days.
Many governments and local authorities offer financial incentives and rebates to encourage the adoption of solar energy. These incentives can significantly reduce the initial installation cost of solar panels.
The SEIA (Solar Energy Industries Association) has reported that the cost to install solar panels to your home or business has dropped by around 70% in the last ten years, alone. Examples include federal solar tax credit, state incentives, and rebates for solar installation. Taking advantage of these incentives can lead to substantial cost savings.
SRECs are credits you earn for every megawatt-hour of solar energy your panels produce. These credits can be sold to utility companies or other entities that need to meet renewable energy targets.
Selling SRECs can provide an additional income stream, further offsetting your solar investment’s cost.
Solar panels have a long lifespan, often exceeding 25 years. Once the initial investment is recouped, the remaining years of solar energy production translate to significant savings.
As utility rates continue to rise, your savings from solar energy will increase, offering a stable and predictable energy cost for decades.
Installing solar panels can boost the value of your property. Potential buyers are increasingly looking for energy-efficient homes, and solar panels are a compelling selling point.
Research shows that homes with solar energy systems sell faster and at higher prices than those without, making solar a smart investment for your property’s future resale value.
How much you stand to save when going solar depends on a few important factors:
Homeowners and business owners who switch to solar end up saving thousands in utility charges just by choosing to produce their own energy. Solar panels reduce your usage of electricity from your utility company, lowering your electricity bill. You can further lower your costs and keep more of the solar power that your home produces by choosing to install a solar battery with your new solar panel system.
On average, homeowners can save thousands of dollars from installing residential solar panels. This typically ranges from $10,000 to $30,000 or more in reduced electricity expenses. Government incentives, tax credits, and net metering policies further enhance savings.
Solar panel investments can sometimes be fully recouped within 5-10 years, yielding substantial long-term financial benefits through reduced utility bills and potential income from excess energy generation.
You will still have an electric bill with solar panels installed. You may get a bill that requests no payment at all, just indicating how your kilowatt usage was offset by the amount of electricity that you used, if you have provided more electricity to the grid than you used. Installing solar panels on your home or business will lead to lower monthly electric bills and, for some, may eliminate your need for an electricity bill payment, at all.
By optimizing various aspects of your solar energy system and usage, you can significantly increase your savings. Here’s how:
Ensure your solar panel system is appropriately sized to meet your energy needs. An accurately sized system will generate sufficient electricity, minimizing reliance on the grid and maximizing your savings.
Implement energy-efficient practices within your household to reduce overall energy consumption. Energy-saving appliances, LED lighting, and smart thermostats can complement your solar panels and further reduce your reliance on the grid.
Understand your utility’s time-of-use rates and adjust your energy usage accordingly. Shift energy-intensive activities to times when solar production is high to utilize the free energy generated by your panels, thereby reducing peak-rate consumption from the grid.
Keep your solar panels clean and well-maintained to ensure optimal efficiency. Regular maintenance prevents dust, dirt, or debris buildup that can hinder sunlight absorption and reduce energy production.
Leverage net metering to its fullest. Accumulate credits during excess solar production periods and use them during low-production or high-energy consumption periods, ultimately reducing your net energy costs.
Consider investing in energy storage solutions like batteries. Storing excess solar energy allows you to utilize it during non-productive periods, maximizing self-consumption and minimizing reliance on the grid.
Stay informed about available government incentives, tax credits, and rebates related to solar energy. Utilize these opportunities to reduce the upfront costs of installing solar panels and increase your overall savings.
Ethical Energy is a leader in solar panel installation. We pride ourselves on using cutting-edge technology with smart best practices to save our customers money without sacrificing quality or service. Contact us today or call us at (888) 909-6377 to discuss your solar panel options.
Yes, solar panels can indeed save you money in the long run. While the initial investment in purchasing and installing solar panels can be substantial, the ongoing operational costs are significantly lower than relying solely on grid electricity. A solar power system generates electricity from sunlight, reducing your reliance on the grid and, consequently, your monthly electricity bill
On average, homeowners can save anywhere from 10% to 30% on their monthly electricity bill. The exact figures depend on your location, solar system size, energy consumption, and local electricity rates. For a more accurate estimate, it’s advisable to consult with a solar energy provider who can conduct a thorough assessment based on your specific circumstances and provide a projection of your potential savings.
The payback period for solar panels, the time it takes to recoup the initial investment through savings on energy bills, typically ranges from 5 to 10 years. This duration can vary based on system cost, available incentives, energy consumption patterns, and electricity rates in your area. Once the payback period is over, the savings on your energy bills become a direct financial benefit, and you can enjoy significantly reduced or even free electricity.