How To Calculate Your Solar Needs
There are many resources online that can help you determine how much solar you need depending on your location, monthly electric bill, and what youre willing to spend.
These tools will allow you to get a ballpark of how long its going to take for your system to pay itself off and how many solar panels will be needed to produce an ample amount of electricity. At Sun Badger Solar, we want our customers to be fully equipped in the decisions they make about their solar energy systems. To help you better understand how much solar will cost you and how much you can save, check out our solar calculator.
Commonly Asked Questions Related To How Much Money Solar Panels Save
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?
Your Quote Appears Too Good To Be True
Youve heard the old saying: if its too good to be true, it probably is. Unfortunately, this definitely applies to solar.
Massive growth in the solar industry means that the rise of highly-rated local solar companies has been accompanied by fly-by-night operations.
The latter category of companies offer solar panel installations at bargain-basement prices, either because they offer low-quality equipment or because they have an unsustainable pricing model that will see it out of business within a few years.
Given that solar panels are designed to last at least 25 years, we recommend you steer far away from such solar cowboys.
Learn more: 10 tips for getting the best solar quote
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How Much You Can Get
The size, shape and position of your home can sometimes put a damper on your solar plans. If your home is shaded, if youre in a low-sun area, if your home isnt oriented toward the sun or if your roof is full of gables and awkward angles, you might not be able to physically fit as much solar as you need to maximize your savings. Skilled installers can sometimes find creative ways to add panels to your property, but thatll likely cost more than a conventional installation. If youre unsure how suitable your home is for solar, you can use a calculator such as Googles Project Sunroof to get a feel for its potential.
How Can You Make Money Off Solar Panels
The other thing to take into consideration is the fact that you can actually get paid for using solar energy.
Under the smart export guarantee which launched in January 2020, households get paid for solar energy they export electricity you generate, but dont use.
This unused energy is pumped back into the national energy grid and youll get paid for doing so.
The amount you get back depends on the company and ranges from just 1.5p per kWh to 12p per kWh. Youll have to check with your energy provider what the rate is as its prone to change.
However, as per Money Saving Expert, the Energy Saving Trust estimate a typical household based roughly in the middle of the country could make between £80 and £110/year .
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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.
Efficiency Of The Solar Panels Based On Panel And Roof Location And Angle
| Panel tilt angle | Directly west-facing roof photon ray access efficiency | Directly south-facing roof photon ray access efficiency | Directly east-facing roof photon ray access efficiency |
| 0 |
| $17,769 | $19,990 |
Based on the above figures, it is clear that the cost-saving implications can be absolutely enormous if you do not get your initial system installation right. As the installation costs for solar vary from around $700$1,700, a surprising number of people prefer to install their own panels. However, it is safe to say that the installation costs are minimal compared to the amount of money that you could lose if you do not get your panel alignment right.
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Can Solar Panels Actually Save You Money
by Dana George | Updated July 19, 2021 – First published on June 30, 2021
Image source: Getty Images
Looking for a way to save money while helping the planet? Solar panels may be right for you.
Of all the investments you make throughout your lifetime, few will feel as personal as your home. Once you sign a mortgage, you commit yourself to protect your new investment. That means making decisions about the property, including steps you will take to enhance its value. One method of improving your home’s value is to install solar panels. In short, solar panels convert sunlight into electricity, cutting down on the amount of energy you must purchase each month. Here, we’ll examine whether solar panels are worth the price you pay for them.
What Is Backyard Revolution System
Backyard Revolution System is a simple blueprint that allows you to build low-cost green electricity in less than two hours. Even if you have never built anything in your life, the Backyard Revolution System will help you get all the steps done correctly. This guide will enable you to get the best solar panel regardless of your financial state, and it is so simple to follow and understand.
The solar system does not require a lot of space. Only 5% of what is typically used in conventional solar panel systems is required. According to the official website, many users have placed it on their balconies, meaning that you might not even need a backyard. The Backyard Revolution System also requires zero maintenance. All you need is to place your solar panel in a sunny spot and enjoy it all year long.
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It Starts With Your Mindset
Investing in solar is for future planners.
If youve got a sunny roof, your solar panels offset your electricity use pretty evenly, and your utility company offers a good net metering system, youre probably in good shape to save short term on your utility bills. Perhaps significantly. Many of our clients do. But still, the biggest financial gains are long-termtypically, 8-12 years down the roadwhen youve paid off your solar investment but your electricity is still mostly covered each month.
So before even looking at how sunny your roof is, ask yourself:
Are you thinking short-term right now? Like a robin digging for worms for breakfast?
Or are you in a long-term frame of mind, like when the same robin flies up high to find the perfect branch to build a nest?
Once your solar panels are up and running, what youll pay each month depends on several factors.
Homeowners tend to land in one of three categories.
Access Is Dependent On Where You Live
The biggest obstacle to joining a community solar farm is that there may not be space for one where you live. You typically have to live a certain distance, determined by each farm, from a community solar project to join. If you live in a large city where there is little space for a solar farm, it may not be feasible for you to join one.
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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.
All That To Say Its Possibleeven Likelythat Switching To Solar Energy Will Save You Money
Its also possible it wouldnt.
Thats because several variables have to sync up to turn solar panels into savings.
An expert can help you quickly put your solar puzzle together.
Youll need answers to questions like:
How sunny is your roof? How much energy does your family use? How many solar panels fit on your roof? Does your utility offer net metering? Etc etc.
You can easily see theres no one-size-fits-all answer.
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The Verdict: Are Solar Panels Worth It
There are a number of eco-friendly ways to reduce running costs and add value to your home but one outlier is solar panels, said James Forrester of estate and lettings agent Barrows and Forrester. Despite being one of the most common ways of improving the carbon footprint of a home, it seems they do very little in terms of added value.
Installation is expensive, around £5,875, while the value added is estimated to be £1,916, a loss of -£3,959. However, there are obvious savings to be made from reduced utility bills, so if the owner is planning to stay in the home for many years to come, solar panels can still offer good savings, the agent said.
Yes, solar panels are worth it, said Jackman on The Eco Experts. How profitable your solar panels are depends on where you are in the UK, because the sun shines more in different regions. It makes sense that regions have different break-even points. For example, it takes 10.21 years to break even in East Anglia compared to 14.84 years in northern Scotland.
Even if it requires a significant amount upfront, said Tamas Vekony on GreenMatch.co.uk, investing in solar energy can have a great return in the long run.
Solar Savings Versus The Cost Of Going Solar
The average price youll pay for electricity through solar in the US varies by state, installer, manufacturer, your homes specific installation, and many other factors.
For example, in California where the cost of grid electricity averages about 17.97 cents per kWh, the average price youll be paying for your electricity with solar is about 7 cents per kilowatt hour! The differential between these two numbers is significant.
If you live in a state like California where the solar costs are considerably lower than electricity costs, you can most definitely save money with solar!
Even if your electricity rates arent as high as California prices, going solar can still save you money. There are two types of savings youll find with solar.
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How To Estimate Cost And Solar Energy Savings
Of course, national and state averages dont give you or your customers an exact answer for how much their individual system will cost, or whether going solar is worth it for them in the long run. And that’s exactly what they want to know!
To satisfy them with a clear and trustworthy estimate, take these factors into account in your solar proposals:
How Much Do Solar Panels Save On Energy
Solar panels come with massive benefits both in the money that they save homeowners and the sustainable green energy they produce.
Many homeowners wonder how much solar panels will actually help you save on electricity use and cost. However, because they are expensive to purchase and install on a home, its important that the benefits outweigh the cost of investing in them.
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Will Switching To Solar Energy Save You Money
The point of having solar panels is to have your home generate its own power. This will then offset your electric bills, if not completely eliminate them. If you generally have a higher electric bill, youll likely benefit when switching to solar.
However, if your electric bills are consistently lower, you may not see much need in switching to solar, as the costs could outweigh the benefits.
If youre still wondering if switching to solar energy might save you money, ask yourself these questions:
- Do you find that your electric costs spike in spring and summer?
- Does your home need a lot of energy, thus costing you hundreds, if not thousands, of dollars in electric bills?
Also keep in mind that electricity rates are volatile. As an example, the ice and snow storm in the southern states in 2021 caused many electric bills to triple, if not quadruple, due to electric needs. Of course, no one can expect events like that to take place, but if it worries you, getting solar can ease those fears a bit.
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Understanding Your Solar Loan Calculator Results
Monthly payment: This is the amount youll pay each month toward your loan.
Estimated total interest: This is the interest amount youll pay over the lifetime of the loan. Interest rates on solar loans range from about 6% to 36%, and the rate you receive depends on your credit, income, existing debt and other factors. Borrowers with high credit scores and little debt often get the lowest interest rates.
Total amount repaid: This is the amount youll pay by the end of the loan, including the loan principal and interest.
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How Long Does It Take To See Savings On Energy Bills With Solar Panels
Once a solar panel installation is fully functional, you may see savings on your next months energy bill. However, it can take some years to recoup your initial investment costs. Using the national average figures we used in the example above, and if a household is saving $1,390.22 a year on energy costs, you can take the total cost of the initial investment and divide it by $1,390.22 to see how many years it will take to make your money back. After your initial investment has been recouped, everything after that will be a profit, minus any costs associated with maintenance or repair to the solar panel system.
If you look at the national average costs associated with installing a 6-kilowatt solar panel electrical system, which is $2.76 per watt as of July 2021, then the average cost for a 6-kilowatt solar installation is around $16,650. After the federal solar tax credit, the total cost would be closer to $12,254. If you live in a region with additional state and municipal tax rebates for installing solar panels, the cost would be even less. By dividing the total cost of $12,254 by the yearly savings of $1,390.22, you can then figure that it would take just under 9-years to see a total return on your investment2.
