How Much Money Do Solar Panels Save On Your Electricity Bill
Solar energy is the future. There are just no two ways about it. The world is fast-depleting its fossil fuel resources.
Research estimates our existing reserves for coal, oil, and natural gas will no longer be around as early as 2060. The world will have to turn to renewable energy resources like solar energy.
How Much Do Solar Panels Cost
How much you pay to have solar panels fitted will depend on the size of your roof and the type of system you choose. Having solar panels installed isnt cheap, but costs have fallen over the years and for some people its a small price to pay for the environmental benefits it brings.
According to online service Green Match, one of the most common choices is a 4kW solar panel system which consists of 16 panels and requires around 29 square metres of roof space. This should generate enough energy for a family home , although you may still need to use energy from the Grid.
Costs for a system of this size are between £6,000 and £8,000, but in return you could save around £270 on your annual electricity bill.
A cheaper option is a 3kW solar panel system which consists of 12 solar panels and requires around 22 square metres of roof space. Costs come in at between £5,000 and £6,000, but savings are also lower at around £160 per year.
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.
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Get A Solar Panel Quote For Your Home
Want to learn more about a home solar installation? Ready to go green? Contact the solar professionals here at Sandbar Solar for a quote. Sandbar Solar & Electric has been locally-owned for 14 years. Were currently the largest residential and commercial solar installer in Santa Cruz County. When you work with us, you can count on our professional commitment to quality work, ethical solutions, community sponsorship, and environmental stewardship.
Weve worked hard to develop a reputation for designing and installing the most efficient solar panels on the Central Coast. We invite you to look through our online portfolio of Recent Projects. Our work areas include Santa Cruz and Monterey counties as well as San Jose and the Bay Area.
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About the Author
Scott is the founder of Sandbar Solar & Electric. With a Bachelors Degree in Economics from UC San Diego, Scott has an NABCEP certification, and has lectured on and taught many high-tech construction practices and solar PV technical concepts to education institutions, including Stanford University and state-recognized electrician apprenticeship programs. Scott enjoys sharing his knowledge of the evolving renewable energy space and making a difference in his community.
Solar Panel Tax Credits
The U.S. Federal Government provides a tax credit on solar energy, known as the investment tax credit.
The Investment Tax Credit started in 2006 and was originally intended to expire in 2007. However, it proved so popular that Congress extended it, and it is now scheduled to last until the end of 2021.
The Investment Tax credit currently allows you to deduct 26 percent of the cost of your solar power unit off of your taxes. In 2021, the last year for the program, individuals will be able to subtract 21 percent.
Finally, some states such as California, Arizona, Massachusetts, Hawaii, or more offer state Tax rebates, or at least minimize the increased value of your home by installing a solar unit.
Some states even offer cash rebates for installing solar power.
In addition, many local power companies are required by the State to produce a certain percentage of solar power. Local power companies will offer you the opportunity to pair up with them and sell them a percentage of your unused electricity, sometimes at a substantial premium to meet their state-required quota.
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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 you’re in a low-sun area, if your home isn’t 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 that’ll likely cost more than a conventional installation. If you’re unsure how suitable your home is for solar, you can use a calculator such as Google’s Project Sunroof to get a feel for its potential.
What If I Want To Move House
There are a couple of considerations before you install solar panels.
One is that some people really dont like the look of them and are concerned it could make their home more difficult to sell. This is a matter of personal preference though and shouldnt stop you installing panels.
Planning permission is something else to think about. You shouldnt need it unless your home is listed or has a flat roof, but its worth doing your research rather than finding out later.
You should also check theyre covered by your home insurance.
If you are still paying off a loan or finance agreement on your panels and decide to move house, youll be liable for that cost. So factor that into any moving costs if you decide to move.
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You Can Still Switch Energy Supplier
If you have solar panels, don’t think this locks you in to your energy provider so you can’t get cheaper bills you can join the MSE Cheap Energy Club to stick on the cheapest deals .
Your energy provider doesn’t need to be the same as the supplier that pays you for your solar-generated energy, so you’re free to switch.
Also, with a modern SMETS 2 smart meter, two firms can use the same device, so you don’t need to get a new smart meter.
It’s just as simple to switch your supplier for the export tariff, and as rates vary wildly between firms, make sure you’re always getting the best rate possible see what each firm pays.
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:
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How Much Are You Spending On Electricity
Before you can know how much you can save on electricity, youll first need to know how much youre spending on electricity. One easy way to find this out is to look at your monthly electricity bill from your utility company. On that bill, you should be able to see how much you spent for the last month, as well as at what rate your electric company is charging you for the electricity.
Currently, the United States average cost for a month of electricity for any given household is $115. Depending on where you live, how big your house is, and how much electricity you use, this number could vary dramatically. In some cases, families can get their electricity bill below $50. In contrast, other families with large homes could spend upwards of $500 during the warm summer months when their air conditioners are constantly running.
After you see how much you spend on electricity, your solar installers will be able to put together a rough estimate of how many solar panels youll need to help compensate for your electricity usage.
Why You Should Go Solar In 2021
2020 was a strange year for everyone. One of the less talked about financial damages the pandemic caused was higher electricity bills. This makes sense considering millions of people working remotely or simply spending more time at home due to restrictions or precautions. This is one of the reasons homeowners are investing in solar energy not knowing when the pandemic will end.
Apart from COVID-19, there are many reasons why residential solar panel installation is becoming popular. The cost of solar panels has been decreasing steadily. You can not only lower your electric bill but also become more energy independent. However, people are becoming more environmentally conscious and investing in solar energy for their environmental benefits. Heres how going solar can help the environment:
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You Need To Know How Much You Pay On Your Electric Bill
This estimate assumes you will get all of your power from solar. While some homes will be able to get 100% of their electricity from solar, or even sell some surplus energy back to the grid, others will still have an electric bill to supplement usage. This will vary widely from home to home, depending on how many solar panels are installed, normal energy consumption and more. Get more tools to calculate your home’s potential savings here.
Now you have a sense of how much energy you’ll save, login to your electric utility company account and calculate an average of your last several electricity bills. Go back at least six months, if possible, to account for seasonal temperature changes and other fluctuations in cost. Let’s assume you get 100% of your usage from the panels and currently pay an average of $125 per month in electricity bills, or $1,500 per year. Now you have the information you need to estimate the payback period for solar panels.
Can You Run Your Whole House On Solar Power
One of the most frequently asked questions from homeowners regarding solar is, Can it really power my whole house? The answer is quite simple: yes, solar energy can power your entire home. On the same subject : How much is the monthly payment for solar panels?. .
Can solar panels power a house 24 7?
Despite their hard work during the day, solar panels rest at night. By pairing solar panels with net metering and / or a solar battery like Sunruns Brightbox, you have a reliable and sustainable power solution that works 24/7.
How many solar panels does it take to run a house off grid?
Most of the data suggests that a typical American home consumes approximately 11,000 kilowatt-hours per year. So when we divide our total consumption by the expected output of a solar panel, we see that approximately thirteen solar panels of this size would be enough to power a house of that size.
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One More Important Thing To Know
Some factors could increase your payback period. Before installing solar panels, you need to inspect the condition of your roof. Panels can last 25 years, so if your roof is not in tip-top shape, you might have to make improvements before installing solar panels. If this applies to you, make sure to add these costs to your initial investment.
Overall, solar power can be an expensive proposition, especially with the upfront costs. However, the long-term efficiency they provide can more than offset the initial investment, leading to savings for years to come.
Reduced Water Usage And Wastage
Apart from solar energy, there are other renewable energy sources, including hydropower and nuclear energy. These sources require a lot of water to generate electricity and leave a large carbon footprint initially during plant construction. For instance, hydropower generation involves constructing dams to control the water flow, resulting in a significant impact on the local ecosystem.
Solar panels do not need water to generate electricity so they dont hurt the ecosystem. Apart from usage, solar panels can play a big part in solving water scarcity and wastage issues. With less reliance on hydropower, nuclear power, and other conventional energy sources, we can save more water for human use.
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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.
So How Much Do Solar Panels Save On Electricity Bills
As we can see from the article above, there is no one answer to the question: how much do solar panels save on electricity bills?
However, investing in solar energy for your home can generate significant savings. The important thing is to review how much you are currently spending on electricity and then calculate how much you stand to save based on the points described above.
Are you looking for other helpful articles like this one? If so, then make sure to check out the rest of our blog today for more!
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Electric Bill: Before And After Solar Panels
The Solar family wants to reduce their monthly energy bills. They live in Summerlin and currently pay, on average, $150 per month for electricity. They plan on staying in their home for at least ten years, given its location near a great school, parks, and a shopping center. Theyre interested in installing a 7 kWp solar panel system, as it is the one best suited to the size of their roof and budget.
According to the Energy Information Administration , the average annual electricity consumption for an American household is 10,766 kilowatt-hours . The EIA also reports a nationwide average price for residential electricity in September 2019 of 13.17 cents/kWh, though in Las Vegas this price is only 12.15 cents/kWh. This means the average annual and monthly power bills for a typical household at about $1,418 and $118, respectively. In 2018, the EIA predicted energy prices would rise to a nationwide average of 14¢ per kWh in 2028, though in Nevada they have fallen over the last ten years and may continue to do so.
With their electric bill higher than average, and with rising energy costs likely, the Solars are thinking about their future with solar power and without.
Why Do Realtors Hate Solar
Some agents turn buyers away from solar homes because the agents themselves dont understand them. There are many agents who scare buyers with their own opinions. McGill said. This is irresponsible and it goes against the ethics of the agents, by the way, but it happens.
Why solar is a ripoff?
Businesses have misled consumers about the true costs of solar panel installation, provided poor quality labor, and left homeowners with higher utility costs, all while forcing them to sign outrageous contracts that leave little behind. recourse possibilities. Two companies in particular stand out: Vivint and SolarCity.
Why You Should not Get solar?
You will still lose power during a blackout. Most homes that use solar energy are not completely self-sufficient and must be connected to the grid. This is because your system can produce more energy than your home needs, and the excess energy must go somewhere.
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How Much Can Solar Panels Reduce Your Carbon Footprint
Financial returns are a major incentive for leveraging renewable energy, but money isnt the only thing that solar panels save. When you install solar, youre also improving the environment and reducing greenhouse gas emissions. Thats why the question How much can solar panels save? can be answered two ways: how much money solar can save and how much CO2it can save .
The Environmental Protection Agency provides a formula to help you calculate how various green practices result in carbon emissions reductions. The below table converts solar power energy production into greenhouse gas offsets using the metric converters 7.44 × 10-4 metric tons CO2 / kWh of energy produced and the national average for solar panel production ratio, 1.42 kWh / watt of power.
CO2 Reductions by Solar System Size
A good comparison point to use when thinking about carbon emissions is that a typical vehicle emits 4.7 metric tons of carbon dioxide every year. This means that a 6 kW solar panel system comfortably offsets the emissions produced by one fossil fuel automobile in a year. In addition to significant bill savings, a solar system comes with the satisfaction of taking a car off the road, so to speak.