How Much Does It Cost
The average sticker price before tax credit is $7,500 to $12,000 for a grid-tied 4kW solar system.
The NET COST after tax credit could be $5,250 for self-installed DIY, or $8,400 for professional, full-service installation.
The total cost should include building plans, permit, panels, inverter, rooftop mount, installation and warranty.
How Much Do You Save With Solar Panels
|State and city||Cost of kWh in this area||Savings per year in this area||Savings over 25 years in this area||Minimum number of years to pay back for a $17,000 system|
|New York City, New York||$0.21|
Across the board here, we can see that even if you are in a state or city where your utilities do not cost a great deal of money per year, you can still pocket some serious money through having solar panels installed. Even though it is clear that solar panels save money, it is not all profit.
Remember, the average solar system costs between $17,000$24,000. This means that in some states, if you were to buy a system that cost 24k, you would never actually make your money back.
To give you a better idea, here is how much actual profit you could gain from having a solar panel system installed based on a mean average cost of $20,500, which sits in the middle of the average price range for a solar system in the US.
How Much Can You Save By Switching To Solar
Some people switch to solar panels to be more environmentally-conscious. Most people, however, are more interested in the cost savings.
How much money can you really save by switching to solar? How long will it take for your solar panels to pay for themselves? Will solar panels add real value to your home? Today, were answering everything you need to know about saving money by switching to solar.
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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.
Do Solar Panels Hurt The Resale Value Of Your Home
This is one of the major aspects of going solar that so many people seem to overlook. Often, it is assumed that going solar is not only going to save you money but that it is also going to be a worthwhile investment. It is a known fact that when you lease solar panels, this can be very detrimental to the value of your home because whoever buys your home is then going to have to take on the lease too.
However, when you purchase a solar system outright, there are going to be no additional costs after the installation. As such, because solar provides a source of constantly renewable energy, it only makes sense to assume that any prospective buyer of your home is going to see your solar system as advantageous.
In The US, having solar panels installed on your home can potentially have these advantages among others.
- They can increase the resale value of your home by roughly 4.1% on average.
- Owning solar panels can make your house-selling process quicker and easier as the prospect of having no energy bills can be incredibly attractive for some buyers.
So, not only did your solar system provide you with some amazing long-term energy savings when you installed it, but it also turns out that in some instances having it on your property might actually net you some serious extra money when it comes to selling your home.
To give you an idea of what this would look like, here is how much an additional 4.1% of your homes value represents across a variety of typical house values.
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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 .
How Much Will Solar Panels Save In A Nutshell
So, how much do solar panels save you in a nutshell? Lets simplify it before we start to dive into greater detail about solar panel savings.
- An average family can save between $10,000 and $30,000 over the lifetime of their system. Although in some exceptional circumstances, some American families can save up to $60,000 or more depending on their location and circumstances.
- As the average American household pays about $1,400 a year for 1,000 kilowatt-hours, then solar panels save the average family up to and in excess of 90% of that amount by relying purely on solar technology.
- Based on annual increases of roughly 2.6 percent for grid-sourced electricity, the amount of solar panel savings also increases each year for solar users in turn. This means that an average household saves a lot of money by switching to solar technology. Higher electricity costs in your area simply lead to more money being saved as a result.
- With additional tax credits and rebates, you can make further savings on your tax bill that help to dramatically enhance the amount of money you can make over time from relying on solar technology.
- It takes the average American household roughly 10 years to cover the upfront costs of a solar system and start making profit. How fast profit can be achieved all depends on your location and the amount of available peak daylight hours in your area.
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Who Invented Solar Panels
Like many great inventions, to get solar panels to the great technology they are today, many different people contributed throughout the years. However, the first documented person to observe an electrical charge of certain materials upon exposure to light was Alexandre-Edmond Becquerel in 1839.
Then, in 1881, Charles Fritts was the first to build a commercial solar panel which was very inefficient. In 1939 Russel Ohl was the one who designed the solar cell design that is used in modern solar cells.
Read more about solar energy pioneers.
Pay With A Credit Card For Extra Safety If You Can
Pay by credit card for something over £100, and Section 75 laws supercharge your consumer rights. Unlike with debit cards, cheques and cash, pay in full or in part on a credit card, and by law the lender’s jointly liable with the retailer.
This means you have exactly the same rights with the card company as you do with the retailer, so if it goes bust, you can simply take your complaints there instead and get money back if there’s no delivery. See our Section 75 guide for a full explanation.
If paying by debit card, there’s also valuable hidden protection that means you may be able to get your money back if something goes wrong. It’s called ‘chargeback’ and applies to most debit and charge cards, as well as Visa, Mastercard and American Express credit cards though it isn’t a legal requirement. See our Chargeback guide.
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Solar Power For The Home: Costs
Solar power is capital intensive, and the main cost of owning a system comes upfront when buying the equipment. The solar module will almost certainly represent the largest single component of the overall expense.
Other equipment necessary for installation includes an inverter , metering equipment , and various housing components along with cables and wiring gear.
Some homeowners also consider battery storage. Historically, batteries have been prohibitively expensive and unnecessary if the utility pays for excess electricity that is fed into the grid . The installation labor cost must also be factored in.
In addition to installation costs, there are some further costs associated with operating and maintaining a PV solar array. Aside from cleaning the panels regularly, inverters and batteries generally need replacement after several years of use.
While the above costs are relatively straightforwardoften a solar installation company can quote a price for these for a homeownerdetermining subsidies available from the government and/or your local utility can prove more of a challenge. Government incentives change often, but historically, the U.S. government has allowed a tax credit of up to 30% of the system’s cost.
Can You Earn Money From Solar Panels
The governments feed-in tariff scheme closed to new applicants on 31 March 2019. However, households that installed a solar panel system before this date and successfully applied for the scheme can still benefit.
The scheme offers cash payments to households generating their own energy through solar panels and other renewable technology.
Those who dont qualify for the feed-in tariff can apply for the Smart Export Guarantee scheme which was launched at the start of 2020. Through the scheme, you can be paid for any excess renewable energy you export back to the National Grid.
All licensed energy suppliers with 150,000 or more customers must provide at least one Smart Export Guarantee tariff, while smaller suppliers can offer a tariff voluntarily.
You will be eligible for the SEG scheme if you generate electricity through solar PV panels as well as any of the following:
- Wind turbine
- Anaerobic digestion where organic material is broken down in the absence of oxygen to produce biogas which can then be used as a fuel
- Micro combined heat and power where heat and electricity are generated simultaneously from the same energy source.
Your installation will need to be 5MW capacity or less, or 50MW for micro combined heat and power. It must also be certified under the Microgeneration Certification Scheme or equivalent.
In addition, you will need to have a meter fitted that can provide half-hourly readings so that your supplier knows how much electricity you are exporting.
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How Much Do Solar Panels Save In 2021
Residential solar panels not only help you reduce your carbon footprint, they help you save money on your utility bills, as well. Rebates and incentives like the federal solar tax credit can help you save even more and make installing solar panels even easier.
How much you actually save depends on many factors, including your power usage, local electricity rates, and the size of your solar system. So when you see statistics on how much solar energy saves on average, those numbers arent taking all of these personal details into account.
Luckily, weve created our solar savings calculator that analyzes all of this information. When you use our solar savings estimator, you get an idea of how much you can save with solar panels on your specific home – an estimate that is tailored to you.
Below, we dive into how much solar panels save on average, and what you can learn by using our calculator.
Have More Questions About Solar Savings
As you can see, answering the question of how much do you save with solar panels depends on several factors. The electricity rates in your area, compensation to you from your energy provider, and how much energy you use all figure into the calculation.
If youve enjoyed reading this post, or have more questions about ways you can save money, we invite you to check out our archives. Youll find a collection of posts on a range of topics for homeowners.
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How Much Do Solar Panels Cost
What youll pay for solar panels varies by your state and the size of the solar panel system. Simply put, the more energy you want to generate, the more solar equipment youll need to get. But on average, solar panels will cost you $3.70 per watt. This means the average-size 5-kilowatt solar system would run about $18,500.
Yep, that may seem expensive. But that price tag could end up being much less when you factor in the many government incentives encouraging homeowners to invest in them .
The Amount Of Solar Energy Your System Will Produce
5kW systems are particularly popular. They produce a reasonable amount of energy and theyre not overly expensive to install or maintain. You also dont need an enormous roof. However, some people install systems as small as 3kW or 4kW, while others install systems as large as 15kW.
If you can afford it, and you have the roof size, then larger solar panel systems will save you more money in the long run, all things considered. The cost of installation per kWh goes down when youre installing more solar panels.
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Average Cost Of Solar Panels And Installation
To give a customer an accurate savings estimate, first discover how much it costs for them to install solar. While the cost of each solar system depends on many factors, in the U.S. its usually $13,000 $17,000.
However, most solar owners pay far less.
Due to the current Federal Tax Credit for renewable energy systems most customers will save over $3,000 if they go solar in 2021 or 2022. So the actual customer cost of installing solar is $10,000-$14,000 a national average of $12,000.
For a breakdown of state-by-state average prices and the corresponding tax breaks, Consumer Affairs compiled data from EnergySage and SolarReviews:
Table from Consumer Affairs, based on data from EnergySage and Solar Reviews
*Before tax credits, according to EnergySage and Solar Reviews
**From Solar Reviews
Solar Prices Are Predictable Electric Rates Are Not
The EIAs Annual Energy Outlook for 2018 predicted an average national increase in electric rates from 12.57¢ per kilowatt hour in 2018 to 14¢ per kilowatt hour in 2028. Heres an example of how this increase impacts some households.
In 2018, typical Arizona electric rates were a negative 3% below the national average. Yet in 2028, the states electric rates are projected to increase 9% above their 2018 cost for similar usage.
Sure, energy prices go up and down. But, over the long-term, they pretty much always go up. And, electric rate increases are typically beyond your control.
So, step off this stair master of endless rate increasesyoure not getting anywhere. Go with a home solar system. Take control of your household budget with predictable electric bills. And, rest assured youre doing your part for a sustainable community.
Solar panels protect your wallet from rate increases and lock in lower costs. Imagine clean, affordable, reliable energytoday and for years to come. Together, we you can make it happen.
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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?
What Are The Benefits
The biggest benefit of having solar panels installed is that you will save on electricity costs. If your solar panels are large enough, you may be able to produce enough electricity for your whole home.
The Energy Saving Trusts solar energy calculator will give you an estimate on how much you could save.
Another benefit is that you will be reducing your carbon footprint. The Energy Saving Trust says a typical home solar PV system could save around 1.3 to 1.6 tonnes of carbon per year, depending on where in the UK you live.
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The Cost Of Solar In Southern California
The average cost of solar in California is about $3 per watt of electricity generation for a typical home system. To offset all their needs, a homeowner living in Southern California with an average monthly bill of $200 would need a solar installation capable of generating 4.6 kilowatts under full sun.
Take 4,600 watts times $3 per watt, and the average solar system for a home in SCE territory would cost $13,800, before the federal solar tax credit, and about $10,200 after the tax credit.
Here are the average costs for various system sizes:
|Average monthly bill|
California is a mature solar market with lots of companies competing for your dollars, so you can usually find a range of prices from multiple installers that each use different brands of solar panels and equipment. Going with the cheapest offer isnt always the best choice because installation companies differ in experience, product quality, and warranty offers.
Your best bet is to compare multiple offers from different local solar companies and make sure you ask the solar salesperson all the right questions before choosing.
See what local solar installers are charging in your area