Saturday, June 8, 2024

Do You Really Save Money With Solar Panels

How Solar Panel Efficiency Impacts Savings

How does solar power save you money?

So, how does solar energy save you money? It is all about the effective placement of your solar panels. The efficiency of your solar panels is going to directly impact how much money you will be able to save over time when using them.

Solar panel efficiency largely relies on whether they are placed in a position that allows them to directly access the suns rays maximally. Optimal solar panel positioning relies on them being south facing and placed at a 45-degree angle.

Do Solar Panels Affect Electricity Supply

If your solar panels are fitted correctly, your system should switch seamlessly between using the electricity your solar panels have generated to using energy from the National Grid when the panels are not generating enough. You wont notice any difference in your electricity supply.

You can use your solar panels alongside a normal energy tariff, and theres no need to tell your energy company. Youll just use less electricity from the Grid, and therefore pay lower bills. But you should shop around to make sure your tariff is competitive .

Lower Taxes & Access To Other Incentives

Tax breaks, rebates and other various incentives vary significantly from state to state, but heres what the average state might offer its taxpayers.

  • State Tax Credit: Though only available in about 10 states at the moment, some offer additional tax credits against the price of installing a system.
  • Property Tax Exemption for Solar: Without an exemption, the additional value of a solar energy system would add to the assessed value of your property, increasing your property taxes.
  • Sales Tax Exemption for Solar: In many states, purchasing a solar energy system is exempt from the state sales tax. This can prevent an additional few thousand dollars worth of taxes in states where sales tax is high.

No matter what state you live in, youre eligible to receive the federal solar tax credit of 26%. You may also hear this referred to as the federal investment tax credit .

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Electrical Appliances That Consumes A Lot Of Power

Certain home equipment takes a lot of energy. You can switch some for energy-saving alternatives while keeping in mind that the amount of electricity they require may be sufficient for other products. This way, you may be more conscious of your consumption and perhaps save money.

Refrigerator Having a fridge at home is vital to keep food and produce fresh, but it typically consumes a lot of energy because it is switched on 24 hours a day, seven days a week. The average usage of a 16-cu. ft. refrigerator consumes 1,200 watt-hours every day. Choose a size that is appropriate for your familys requirements and keep it a few inches away from the wall for adequate ventilation.

Water heater Warm baths are quite pleasant, but if you enjoy taking long showers, keep in mind that a water heater may burn 4,500 watt-hours each day. While its fine to splurge every now and then, being conscious of your shower time might help you save money on both your electric and water bills.

Air conditioner While an air conditioner is a must-have during the summer months, it is also one of the most often abused equipment. The type of air conditioner, the size of the space youre cooling, and the length of time its running are all variables that contribute to a larger power cost. Set timers if feasible to keep track of your consumption.

How Can Solar Help My Household

Do You Really Save Money With Solar Panels?

The potential to save money is often the fundamental reason why people add solar, and rightly so. It makes sense to choose a solution that can deliver a reliable power supply to your home, at a reduced price.

Solar meets the majority of power needs for New Zealand homes, but usually not all of them. For this reason, most customers choose a hybrid model that combines conventional power , and solar power.

This option gives you control, with back-up from the main electricity grid when you need it. In addition to that, if you go for a system with a battery storage option, your solar system will also store excess power that can be used during low daylight times.

A hybrid solar system enables you to maximise your power bill savings as energy generated from your solar panels is used first. Therefore, you only use electricity from the grid when you need it.

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What Is The Solution

Calculate your requirements exactly. Use the table we mentioned to individually add up the separate wattage ratings of all of your household items, or alternatively, pay a commercial solar company to evaluate your energy requirements.

On occasion, you can actually receive a free solar consultation from one of the larger solar energy firms. If you are a business-minded individual, it would not harm you to take them up on the offer to determine precisely how big your solar system needs to be before then using this figure to base your cost calculations on. This is going to allow you to determine exactly how much money you will be able to save after the installation costs have been covered.

Solar Loan Calculator: Estimate Your Monthly Solar Loan Payments

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Solar panel systems have high upfront costs, but you should make the money back in savings on electricity over time. If youre planning to finance the panels, a solar loan calculator can help you determine how much you can afford to borrow.

Use this solar loan calculator to estimate monthly payments toward your loan and how much total interest youll pay.

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Can I Sell Back My Solar Energy

Even though you might have heard of schemes like solar buy-back or feed-in tariffs and are possibly thinking about all of the extra money that you might be able to make from them by harnessing and selling excess solar energy back to utility companies just through having a solar system installed, sadly, it usually does not quite work like that.

Consider the following facts.

  • Your excess solar energy will likely go back into the grid to feed into other homes in your area.
  • Even though your excess energy will get used elsewhere, ultimately, it will still come back to you.
  • Your excess energy is usually stored as something called solar credits, which allow all of the excess energy produced by your system to be credited to your account.
  • As solar systems may not be able to generate as much energy as normal all of the time, these credits can ensure that your energy remains constantly free.

If you were expecting lots of excess income from selling your energy back to the utility company, then disappointingly, this is not likely to be the case. It is very rare now to find companies that are actually willing to reward you with financial incentives for your excess solar energy.

However, solar credits are a vital part of ensuring that your energy remains free. From time to time, solar systems are not going to be able to work quite in the way that you expect them to.

This can be due to a wide variety of reasons.

Things To Consider With Solar Panels

Installing solar panels might make you feel good, but does it actually save you money?

Calculate your sun exposure, costs and savings. Solar panels will help people in some parts of the country save more money than others. For example, someone in Seattle might not get the same value from solar panels as someone in Phoenix because of the disparity in sunshine.

To estimate your savings, you first need to know how many kilowatt-hours you use and how much youre paying for them. In 2020, the average household used 893 kilowatt-hours each month, according to the U.S. Energy Information Administration. In January 2022, homeowners paid an average 14 cents per kilowatt-hour.

Then, figure out what size system youll need. You can use a solar savings calculator to see how many panels your home would need and how much energy they would generate.

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Do You Still Have An Electric Bill With Solar Panels

In summary, yes, you will still receive an electric bill after installing solar panels. Importantly, the bill may not ask you to pay anything, and may simply indicate how your usage was offset by net metering credits for the month. In the case where you provide more electricity to the grid than you pull, your utility will usually roll over your unused bill credits to the next month for you to take advantage of. Regardless, installing solar panels will almost certainly lead to lower average monthly electric bill charges, and may eliminate your monthly electric bill in some cases.

How To Save Money With Solar: All You Need To Know

Everyone wants to stop paying so much for power, right?

Price increases for traditional energy forms continue to reach staggering new heights so customers are spending more and more every year to heat, light and run their homes.

If this sounds like you, youre no doubt thinking there must be a better way.

There is.

Solar energy can offer significantly reduced power bills for a lifetime, and you can start saving as soon as you install a solar system. And, having more money in your pocket is just one of the advantages of using the suns clean, renewable energy to power your home.

Perhaps youre wondering whether you can afford to add solar to your house or if it will actually have much of an impact. We can help.

In this blog post we give you an overview of one of the most important sections of our new eBook, which uncovers how much you could potentially save by installing solar in your home, and the factors that influence your level of potential savings.

Find out if investing in a solar energy system will pay off for you.

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Which States Save The Most Money With Solar Panels

We know that installing solar panels on your home is a way to cut your electricity bill and save money. The more electricity your family uses on average, and the more extensive your solar system, the more money you can keep in the long run. In fact, in some regions, you may even be able to generate more solar electricity than you need and sell the excess back to the power company for a small profit.

To calculate how much money you could save each month by having solar panels, first take a look at your electricity bill to see how much electricity your household uses on average. Next, multiply that number by the average electricity rate your energy supplier is charging you. You can look at how much you spend on electricity each month and annually. The average household in the U.S. uses around 10,649 kWh per year. The average residential rate per kWh of electricity in the U.S. was $0.1331 as of December of 2021. That would mean that the average household in the U.S. will pay around $1,417 for their electricity in 2021. These calculations are based solely on the national residential averages of rate per kWh and energy consumption7.

Some regions and states in the U.S. see electricity rates far above the national average. In those states, if the climate is agreeable, installing solar panels can save even more money each year and allow a homeowner to see a return on their investment much quicker.

Commonly Asked Questions Related To How Much Money Solar Panels Save

Do You Really Save Money With Solar Panels?

Why is my electric bill still high with solar panels?

Although solar panels are a form of renewable energy, they still produce a finite amount of electricityan amount thats consistent with the size of your system. If you require more energy than your solar panels are capable of producing, you will still owe money on your electric bill. And in some cases, it may still be high if you significantly increase your energy usage or if your system was not sized properly to meet your energy needs. If your bill suddenly increases and you havent increased your usage, make sure to contact your installertheyll likely want to inspect your system to ensure everything is working properly.

How long does it take for solar panels to pay for themselves?

There are many factors that affect a solar panel systems payback period including the initial cost of the system, financial incentives, your average electricity usage, and the estimated electricity generation. Some of these factors are easier to calculate than others, but on average, it takes between 7 and 8years for most homeowners who shop for solar on EnergySage to get their solar panels to pay for themselves. Read this article to find out if switching to solar is worth it for you.

What are two disadvantages of solar energy?

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What Are Two Disadvantages Of Solar Cells

Delays or Damages to the Solar Unit â ¨ Cannot be used in the absence of light from any source. â ¨ xayIt costs a very high starting price. During cloudy weather, less electricity is generated. â ¨ oo A very large geographical area is needed to deliver solar panels or cells.

What are the two advantages and disadvantages of solar cells? To see also : Why is solar so expensive?.

Solar cells convert radiation directly into solar radiation. Solar cells are very efficient especially in remote areas where the cost of installing other energy systems is very high. Solar cells do not have movable parts, so they do not need repair.

Evaluate Your Sunlight Exposure

More sun means more energy produced and a greater potential to save with solar. Certain states, like Arizona and California, average more sunlight hours per day.

Your home’s orientation toward the sun, the amount of shade and its roof type also affect a solar system’s output. You can estimate the efficiency of panels on your home by using the SolarReviews calculator.

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What Are 2 Cons Of Solar Energy

On the other hand, the major disadvantage of solar energy is that it does not work for any roof, it is not suitable if you are close to moving, the initial cost can be expensive, savings can be reduced if the electricity bills are low are. On the same subject : Can solar power run AC?. , and finding a local installer can be difficult.

Th Myth: More Heat Correlates To More Sun And Therefore More Power

Learn how Sustain Solar works and how you can save money

You receive the most energy for the hours of direct exposure, which are around five per day. Every other hour produces suboptimally.

But the best hours dont produce as much as they should either. High temperatures will decrease solar efficiency, especially when exposed for years.

We expect this problem to fix as new panel models come out. The ideal place to install them is cold climates with a low chance of cloudy weather.

If cold is optimal, that should be enough to prove that heat doesnt relate to sunlight.

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Is Solar Power Worth It

Once you’ve worked through all of these calculations, you’ll likely end up with a single numberthe number of years it will take for a solar system to pay for itself in savings from your energy bills. If you live in a sunny part of the country and have high utility bills at the moment, you could be looking at a system that will reach this point in five years. Other homeowners may have to wait 10 or 20 years to reach this point.

In other words, most homeowners will eventually see a benefit from a solar power system it might just take decades for this to be realized. Whether it is worth installing such a system therefore often comes down to a number of much less technical factors than those we’ve listed above: how long you are going to stay in your home, the subsidies available in your area, and simply whether you want to do your bit for the environment.

Nd Myth: You Can Store Energy For The Night

Not always.

If you dont buy storage units, your solar panels will only work for the hours the sun is illuminating them. Its not very useful, knowing theres always a consumption peak at night.

But you dont need to purchase these to have energy 24h. You can trade surplus energy in the so-called electricity grids.

Whenever you over-produce, you instead send the energy to the grid so that others can use it. You sell it to your electric company, and they can later provide you the energy equivalent.

You keep the electric bill almost always positive, zero, or very low.

You can purchase batteries. But since they alone dont create energy, youll need to wait more years to recover the initial cost. Unless you produce way more, its not worth it.

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The Financial Impact Of Solar Panels

Here in the Midwest, the average monthly utility bill is approximately $100. This equals about 833 kilowatt-hours a month, rounded to 10,000 kWh a year. Take a look at the bar graph below.

This graph highlights the projected increase in electricity rates. The national average increase across the United States is about 5%, and about 3% in the Midwest. If your electric bill is currently $100 per month, in 30 years that would grow to $243 every month. Power companies have a monopoly. So, the only way you can avoid paying these prices is to choose an alternative source of energy, like solar.

How much do solar panels cost? Lets break down the hypothetical solar system installation pictured below.

This example is based on the average Midwesterners electric usage, which again is about 833 kWh per month. In solar energy, that would require 24 panels on a shingle roof with no shade. Including parts and labor costs, this solar system would total approximately $19,105. If that seems like a big number, dont stop reading just yet.

That may seem like a huge investment. But the cost to you is actually much less than the number you see here. The US Government has provided several tax incentives, such as the Solar Incentive Tax Credit . This helps reduce the amount you spend. This particular system would qualify for a 26% federal tax credit, which in this case is just under $5,000.

To learn more about what incentives are available to you, give us a call today.

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