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 good news is that, yes, installing solar panels will save you money.

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.

How Does Going Solar Save You Money

Installing solar panels on your home or business help to lower your regular utility bill by providing your own energy, reducing the amount of energy that you need to purchase from your utility company. Many utility companies have a net metering program that buys your excess solar energy, helping to offset any non solar energy costs. Net metering is a billing system that credits solar panel owners for the electricity that they produce and add to the grid.

Going solar used to be costly, but with time, and incentives, that has changed. 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. The current solar income tax credit makes going solar even more affordable, for those who qualify. To see if you qualify for the current 26% tax credit, contact Ethical Energy today. We would be happy to discuss the current programs available for new solar installations with you.

While there is a cost associated with going solar, that cost more than pays for itself after a few years of normal usage through utility savings and an added bonus-increased home value. The Department of Energy and Berkeley Laboratory did a price-premium analysis for homes with solar across 8 different states on nearly 4,000 homes. What they found was that buyers are willing to pay an extra $12,000 to $15,000 for a home with even an average-sized solar array.

How Much Money Will You Save by Going Solar? 

How much you stand to save when going solar depends on a few important factors:

  • Personal Energy Usage Trends: This is how your household uses energy, including what hours you use the most energy and what hours you use the least amount of energy.
  • Roof Size: A larger roof means more space for more solar panels. More solar panels increases the amount of energy that you are producing from your location.
  • Roof Angle: The angle of your roof will determine how much clear and direct sunlight that your solar panels will receive through out the day.
  • Location/Daily Sunlight: Where you are located will affect the type and amount of sunlight that your solar panels are exposed to. The more direct sunlight that your solar panels receive, the more solar power your home is able to produce.
  • Local Electricity Rates: This is the most important factor in determining how much you can expect to save by choosing to go solar. The more you pay for electricity, the more you offset your cost by producing your own solar energy. Higher local electricity prices generally means there’s a higher potential for savings using solar.

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.

Will You Still Receive an Electric Utility Bill? 

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.

Going solar is a lot easier and more affordable than many realize. 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.