Installing solar panels is expensive, and some homeowners wonder if they do solar panels save money. Over time, or even in the short-term, solar panels will pay for themselves, saving you money. They are also environmentally friendly. Tax rebates and incentives should be considered when calculating the savings and cost of solar panels. How much do solar panels save money? Continue reading to learn more.
Solar Panels Can Save You a Lot of Money.
Solar panels are a great investment. You’ve probably heard from your neighbors, online, or friends about the many benefits. The cost savings that are often mentioned is on the monthly electric bill. How much does the average household save by installing solar panels? In order to quantify the amount of money that an average homeowner can save by installing solar panels, it is necessary to know how much electricity they consume each year. In the United States, an average residential utility user consumes around 10,694kWh per year. This is an average of around 877 kWh a month. Installing a solar panel system of the right size could help the average American household save $1,390.22 in energy costs per year. This is more than $115 in monthly savings
How Soon Can I Expect To Save Money On My Energy Bills?
You may be able to save money on your energy bill the following month once your solar panels are fully functional. It can take several years to recover your initial investment. If you use the same national averages as in the above example, and the household saves $1,390.22 per year on energy, then divide the cost of your initial investment by $1,390.22 and see how long it will take for it to be repaid. Once your initial investment is recouped you will make a profit. This includes any maintenance and repair costs for the solar panel system.
The average national cost of installing a 6 kilowatt electrical system with solar panels is $2.76/watt in July 2021. This means that the average installation costs for a 6 kilowatt system are around $16,650. The total cost after the federal solar tax credits would be closer towards $12,254. You could save even more money if you live in an area that offers additional tax rebates from the state or municipality for solar panel installation. Divide the $12,254 total cost by the $1,390.22 yearly savings to get an idea of how long it will take you to recover your investment.
You may want to consider whether you plan on living in your house for a considerable time before you install solar panels. You will have to pass on the remaining costs to the buyer if you don’t. It could take longer to sell your house, depending on the location and the popularity of solar power in that area.
How Much Can You Save With Solar Panels?
Solar panels are primarily affected by the size of their solar system. The bigger the system, greater the savings. A solar system that is large enough can generate enough energy to power a home and have some left over. The surplus energy can then be sold to the utility company. Even though large solar systems offer greater cost savings, it is important to remember that the initial cost of a larger solar system may be higher.
What Is The Cost Of Installing Solar Panels?
Solar panel installations can cost as little as $5,000, while larger solar installations with the most advanced solar panels can cost upwards of $40,000 or more. Solar panel installations of less than five thousand dollars can be done, while larger installations using the most advanced panels can cost up to forty thousand dollars or more .
What Are The Benefits Of Solar Panels For Your Home?
Solar panels have many benefits. Solar panels can reduce your monthly electricity bill and have low maintenance costs. They also provide environmental benefits. Solar panels can be installed on a home for many reasons. These advantages are explained in greater detail
- Reduce and/or eliminate electricity bill Depending on the amount of energy that can be provided by your newly installed solar system you may be able to drastically reduce or eliminate your electricity bill. In some areas, if you generate more energy than you consume, you can sell it back to the utility company.
- Low Maintenance Costs: Solar panels require very little maintenance. The only requirements for maintenance are to clean the solar panels every few years and replace the inverter once or twice a decade. Many solar panel manufacturers also offer warranties of 20 to 25 years.
- Environmental Benefits: You can get all the power you need to run your home with solar panels, without burning fossil fuels such as coal, oil and natural gas. Solar energy reduces your carbon footprint, which can help to slow down the effects of global warming and climate change.
What Are The Advantages And Disadvantages Of Solar Panel?
We should also discuss the disadvantages of solar panels since we are discussing the advantages. Solar panels have three main disadvantages: the high upfront costs, their weather dependence, and how much space they take up. We will now look at these three major disadvantages in more detail:
- Upfront Costs: The cost of the solar panels and inverter is expensive. Also, the wiring, batteries, batteries’ charging, and professional installation are not cheap. These costs are often paid for by a personal or home equity loan. It is important to remember that you can recoup your investment 100 percent and make a profit over time by reducing or eliminating your electric bill.
- Weather Dependency: Your solar panels’ most productive hours are limited. You may find that your solar panels are less efficient if the weather is bad.
- Solar panels are large. If you plan to install a solar system that is extensive, your roof might not be big enough to fit all of the panels.
The upfront costs are the main concern for most people. Solar energy and solar installation will become more affordable, which will encourage more people to use solar technology.
Solar Panels Can Be Tax Credited
In 2023, the refund will be reduced to 22 percenta href=”https://www.inspirecleanenergy.com/blog/sustainable-living/do-solar panels save money#fn6″>sup>6/sup>/a>. In 2023 the refund will drop to 22 percent
Which States Are The Best For Solar Panel Savings?
Installing solar panels in your home will reduce your electricity bills and help you save money. The longer you keep the money, the more your system will pay for itself. You may be able, in certain regions, to produce more solar energy than you require and then sell it back to the utility company at a profit.
You can calculate the amount of money you would save by installing solar panels each month by looking at your average electricity bill. Multiply that number by your average energy rate. Look at your monthly and annual electricity costs. The average American household uses approximately 10,649 kWh of electricity per year. As of December 2021, the average residential electricity rate in the U.S. is $0.1331 per kWh. This would mean the average American household will spend around $1,417 on electricity in 2021. These calculations are solely based on national residential averages for rate per kWh, and energy consumption
In some states and regions of the U.S., electricity rates are higher than the national average. Installing solar panels in these states can help homeowners save more money every year, especially if they live in a climate-friendly state.
Hawaii is a good example. In December 2021 the average price per kWh was $0.3276. In 2021, a household using around 10,649kWh of electricity would have spent $3,488.61. In 2021, the cost of a 6-kilowatt system will be around $11,837 when you claim the federal solar tax credits. A solar installation in Hawaii could save an average Hawaii household over $3,488 per year on electricity. This would allow the solar system to pay for itself in 3.5 years. Solar panels can save money over time in states with relatively cheap electricity. It may take longer for the investment to pay off
Alternatives to solar panels
Solar alternatives are available on the market. Solar lights, sun-tunnels, solar shingles and ovens, as well as solar AC and water heaters can all be used in your home without having to install a full set of solar panels
Consider switching to Inspire Clean Energy if you don’t think solar panels are right for you. It is possible to use clean, renewable electricity without having to install, maintain and wait until your solar system pays off.
Contact Red Solar
Red Solar has the mindset of renewable energy being the future. We want everyone to travel through this transition. During the Red Solar energy evaluation, we analyze all energy commons in your home for results. Our experts will guide you through the process for better understanding and reassurance. Contact us via phone, email or book your free solar analysis, roofing quote, and a windows and doors quote by clicking here!