Sunday, July 14, 2024

How Much Money Will I Save With Solar Panels

Protection Against Rising Utility Rates


Theres a battle of sorts going on between the old utility guard, with their dependence on fossil fuels, and the new, sustainable energy upstarts. In this scheme, the established utilities can be characterized as Goliath to renewable energys David. And lets not forget how that story turned out. The reality is that consumers in many states have suffered double-digit increases to their electricity bills over the last decade or so due to a variety of reasons including new federal regulations on emissions, rules on greenhouse gasses, renewable energy state mandates and fluctuating oil, coal and natural gas prices.

The combination of past increases in electricity costs and uncertainty of where those costs are headed has convinced many homeowners to take another look at investing in a home solar system. Heres what theyre finding:

When it comes to electricity costs, solar energy offers a competitive and more price-predictable alternative to public utilities.

As mentioned, electricity prices have risen substantially over the last decade for those getting their power from a public utility. Not so, however, for consumers with solar systems on their homes. The main reason? Fixed costs.

Theres money to be saved.

We see a lot of companies now leasing solar systems. I see that as a real positive because it provides another option for people who dont have the cash up front. So if youre green minded, you can get a solar system for your house with no money down, which is tremendous.

Are Solar Water Heaters Worth The Hype

Solar systems are definitely worth the hype if you are looking for a way to lower your bills in the long run while lowering your carbon footprint. In addition, since water heaters need so much energy, solar power is a great way to retain some of the luxuries of modern living without the high costs.

Of course, there is a huge one-time expense associated with solar power. Panels themselves are costly. You will need to ensure that your heating system is hooked up with the panels too.

As you would expect, these are costly expenses. Even though the system can help you save money in the future, many people dont have the current finances to afford the system.

Even if you have the money, buying a solar heater system may be an unwise financial choice. For example, you will not want to upgrade to a solar water heater system if you are about to move.

Although it will increase the value of your home, it likely will be too much of an investment that you wont be able to experience the benefits from.

So, these systems are worth the hype if you can afford them and arent expecting to move any time soon. However, if you find you are strapped on cash or are thinking about moving soon, you should probably forgo these systems for the time being.

How Much Money You Can Save With Solar In Saskatoon

Weve all heard about how using solar panels can save people money on their power bills, but the information we find online about how much you can actually save doesnt always match up with our situation here in Canada.

It is true that using solar power is a fantastic way to save money on your power bills over the 30 to 40 year design-life of the solar power equipment, but lets take a closer look at how much money can actually be saved.

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How Do Solar Panels Offset These Costs

When you install solar panels on your home, you are no longer relying on the utilities to generate electricity and maintain their power stations for you.

As of now, you are producing and maintaining your own electricity production via the suns unlimited energy supply.

The great thing about solar is that there is little in the way of maintenance costs. In fact, all you need to do is clean your panels.

Other than that, your panels should last between 25 to 30 years.

The only costs you need to consider are the initial installation/product costs. That is the buying of solar equipment and getting it installed.

Once you have done this, you will generate free electricity each month. Meaning whatever you were previously paying for your utilities each month, can now be saved.

How Much Will Solar Panels Save Me

How Much Are Solar Panels? Better Question, How Much Will ...

The question that almost certainly follows, how much do solar panels cost is how much will solar panels save me? Installing solar panels will help you to reduce the amount of electricity you use, using the suns energy to power your home instead. This can equate to £50-80 a month or £500-£800 annually in savings, depending on the amount of electricity consumed from household to household.

How much solar panels could save you will largely depend on the solar panels you have installed and how efficient they are, as well as your average household consumption. Youll also want to consider whether you can take advantage of the Smart Export Guarantee that came into force on January 1 2020.

Can you make money from having solar panels fitted?

SEG requires energy providers to pay an export tariff to solar PV homeowners for the energy they put back into the grid. An average home will get paid £100 annually for the excess energy they put back into the grid.

Adding a battery storage solution with a solar panel solution such as theTesla Powerwallprovides round-the-clock clean energy usage. This minimises the need to rely on the grid for electricity when the sun goes down i.e. cooking in the evening, switching the lights on. The Tesla tariff from Octopus Energy also offers customers with a Tesla vehicle, solar panels and a Powerwall 75% in annual energy savings and 100% green energy.

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

Benefits beyond finances

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Why Is Solar So Expensive

Solar panels are expensive because they use a lot of pure silicon, and require qualified installers. They must also be fitted with converters and electrical protection to provide a reliable power supply.

Do you really save money in the sun? Solar panels and solar panel systems will save you money and bring a return on your investment in no time. Rising property prices, lower utility costs and a federal tax would all eliminate the cost of installing solar planets.

A Few Additional Thoughts About Solar Savings

Going solar isnt just good for your bank account its also good for the planet. Your local utility company relies predominantly on fossil fuel to power the grid. By tapping into a clean and infinite source of energy, youre able to generate both financial and environmental savings.

This is only the beginning.

Saving money is the #1 reason why homeowners go solar. However, thanks to programs like the feed-in tariff, installing panels offers so many other benefits. To understand these additional perks, be sure to read our comprehensive guide on the Incredible Economics of UK Residential Solar.

If youre ready to take the next step, request a free no obligation quote comparison from trusted solar installers in your area.

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Damage To Your Solar System

It should go without saying that damage is going to lead to reduced solar panel efficiency, but we have mainly covered the kind of damage that occurs as a result of human error. Sadly, there are many other forms of damage that can occur over time that may potentially lead to substantial energy bleeds and a loss in savings over time.

  • Weather damage
  • Damage due to power surges
  • Damage as a result of wildlife
  • Damage due to human interference

Unfortunately, some of the above issues are completely unforeseeable. Ultimately though, the damage that they present is also entirely detectable. Whether you are able to discover issues with your system largely relies on how regularly you check your system and how closely you monitor its performance.

For instance, if a curious critter in your area managed to bite its way through one of the power cables on your solar system, this is going to be immediately detectable when you have a monitoring process in place. If you do not, you will only discover the issue when you start to lose energy and subsequently also savings. It is the same for weather damage from falling branches or similar. If you have a monitoring system in place, you should be able to detect immediately if there is an issue.

If you do not use monitoring and provided you have annual inspections or regularly clean your panels, then you are likely to be able to spot and isolate any problems of this nature quite rapidly.

How Long Does It Take To Recoup Your Investment

How much money will I save with solar?

How long it takes to earn back your initial investment depends on how much you spend on your solar panel project. If you snag a system for under $11,000, it will take about seven years to recoup the cost. If your initial investment is closer to $26,000, it will take 12 years to break even. Once your solar panels have saved enough in energy costs to pay for themselves, all other savings are a bonus.

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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.

How Do Solar Panels Save Money

If you use electricity and your home is connected to the grid, there is a very high chance that you get hit with an electricity bill by your utility each month.

Now, how much that bill comes up to is based on 2 things:

  • How much electricity you consume.
  • Which state your home is based in.
  • Regardless of the above, you are pretty much guaranteed to pay a certain amount each month.

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    Calculating Solar Power Costs

    Once the above costs and benefits are determined, a solar system can theoretically be evaluated using the discounted cash flow method. Outflows at the beginning of the project would consist of installation costs , and inflows would arrive later in the form of offset electricity costs .

    Rather than using DCF, the viability of solar power is usually evaluated by calculating the levelized cost of electricity , then comparing it to the cost of electricity charged by the local utility. The LCOE for household solar will typically be calculated as cost/kilowatt-hour – the same format commonly used on electricity bills. To approximate the LCOE, one can use the following equation:

    LCOE = Net Present Value of the Lifetime Cost of Ownership / Lifetime Energy Output

    The useful life of a PV solar module is generally assumed to be 25-40 years. The cost of ownership includes the maintenance costs, which must be discounted to find the NPV. The LCOE can then be compared to the cost of electricity from a utility remember, the relevant price is that which occurs during times at or near peak PV solar production.

    How About The Small Power Producer Plan

    Will Solar Panels Save You Money

    When you are using solar panels under the Small Power Producer program, instead of receiving a billing credit for extra power, you will be paid a cash amount for any extra power you export, although at a slightly lower rate than what you are normally billed at.

    The selling rate for power produced with solar panels under the Small Power Producer program as of January 2017 is $0.108222 per kWh and increases by 2% each year .

    With a 100kW solar power system size limit, this plan is designed to allow people or groups to contribute to the power production network of the province and be paid a great price for the clean power they produce.

    There is the potential to generate a significant amount of money over the lifetime of the solar power equipment using the small power producer program as shown in the chart below. The small power producer program may be viewed as a formula to becoming a millionaire or in the least, as a way to generate a considerable amount of income for years to come.

    The above chart features the 40-year production value forecast of a system designed to maximize the 100kW capacity of the Small Power Producer program and takes advantage of the capital cost allowance federal tax deduction class 43.1/43.2 which may apply to businesses claiming their solar power installation as a depreciable asset. The forecast assumes a modest 2% per year increase in power prices year over year.

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    A Money Printer On Your Roof

    Solar is a clean and affordable way to generate electricity. With our price match guarantee, Tesla offers the lowest priced solar so homeowners can make money off of their system and put cash back in their pocket.

    Energy produced by your Tesla solar panel system will directly power your home and reduce the amount of electricity you purchase from your utility. In addition, many utilities give you credit for any extra energy you produce during the day. This crediting process is referred to as Net Energy Metering .

    You can reduce your utility electric bill as a result of your solar energy production and net metering credits. When financing a solar panel system with a loan, your monthly solar payment will typically be lower than the reduction on your utility bill.

    Other Benefits Of Solar Power

    Be energy independent and avoid utility rate hikes.

    Increase your property value by $12,000 to $16,000 depending on where you live. Real estate studies show that a solar home can increase market value at resale.

    The environmental benefits are priceless with clean, renewable energy. The solar panels for this size are the equivalent of planting more than 8,000 trees over the system lifetime.

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    Keep An Eye On Trade Policy

    Changes in government trade policy also impact prices. In January 2018, President Trump imposed a four-year tariff on imported solar cells and panels that started at 30% and was set to drop 5% each year until February 2022. In 2020, the tariff rate for the fourth year was raised from 15% to 18%. The tariff resulted in a 16 cent per watt increase for the average consumer in 2018, which translated to an overall increase of $960 for a six-kW system, according to EnergySage.

    The cost of foreign-manufactured panels may still drop, lessening the tariffs effect over time.

    Rebates Subsidies And Tax Credits

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    Solar panels are not the cheapest to install, otherwise everyone would have them. But with federal tax credits, state tax credits, and other local rebates, youll save already on the installment process.

    The Federal Investment Tax Credit is the biggie. At 30%, this affects every state equally and allows you to use a third of the cost of your solar system to reduce your Federal income tax.

    There are so many individual state incentives and they change frequently so it is best to check your states current incentives in the DSIREUSA database or contact a solar firm in your area for a free estimate .

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    Your Cost Savings Are Affected By Several Factors

    Wed love to tell you that every household in the world will save exactly $700 per year by switching to solar panels. Unfortunately, thats not the case. The specific amount you save by switching to solar is impacted by a number of different factors. In some situations, your savings could be as little as $100 per year. In other situations, you could save $10,000 per year.

    Here are some of the things you need to consider:

    How Much Money Can Solar Panels Save You Annually In The Uk

    The #1 reason why people go solar is to save money. After installing photovoltaic panels on your rooftop, youre able to power your home and appliances with free sunshine instead of expensive grid electricity.

    Its a nice concept, but the United Kingdom is infamous for its overcast skies and feeble sunshine.

    If you do decide to go solar in the UK, how much money can you really save?

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    What Are The 2 Main Disadvantages To Solar Energy

    However, solar energy still has important drawbacks that we need to be aware of. The two main disadvantages of solar energy are climate dependence and the inability to store electricity. The intensity of the sun is highly dependent on sunlight.

    What are the disadvantages to solar energy?

    Initial high prices for materials and fixtures with long -term ROI . chances are because its not 100% good. There is no solar energy at night so a large battery bank is required.

    What are 2/3 disadvantages of solar energy?

    What are the disadvantages of Solar Energy ?

    • Location & Space of the sun.
    • Solar Panels use a wide range of options.
    • The Sun is not always present.
    • Solar energy is not good.
    • There is a Pollution & Environmental Impact that is being ignored.
    • Lots of Storage Energy.
    • High First Price.

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