Wednesday, September 21, 2022

How Much Will I Save With Solar

Average Solar Bill In Australia

How much money will I save with solar?

Research conducted by Canstar Blue in 2020 found that the average electricity bill for households with solar panels is $317 a quarter. This compares to an average of $404 for households that do not have solar installed. The survey of almost 1,500 households with solar panels found that those in Queensland have the cheapest bills at $260 a quarter, with those in New South Wales paying the most at $372.

With these results in mind, it was found that 94% of Australians believe that installing solar was a good financial decision.

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But Still Wouldnt A Simple Answer About Solar Savings Be Nice

Unfortunately, solar energy is a bit more complicated than some solar energy companies would have you believe.

Because our roofs, utilities, and energy needs are all different.

Not to mention, the political climate around clean energy seems to always be shifting. Which means financial incentives from the federal and state governments are slippery to keep track of, unless you make it your full time job .

Solar The Free Energy Source

The biggest advantage when it comes to solar energy is that solar energy systems are powered by the sun, and of course, sunlight is free.

Solar energy systems still draw power from the sun even on cloudy days your house does not have to be in direct sunlight all day in order to benefit from solar, and solar energy systems ‘store’ power during the day, so don’t think all your appliances will be useless once the sun goes down.

It is possible to install enough solar panels on your roof so your home is completely powered by solar energy meaning that you pay utility companies absolutely nothing!

See our video presentation:

There are other financial aspects to take into consideration if you’re thinking about converting to solar energy.

Also Check: How Much Do Solar Panels Cost In Los Angeles

How Much Money Can Solar Panels Save You For Your Specific Home

One of the easiest ways to find out how much you can save with solar panels is by using our solar calculator. SolarReviews has the worlds first solar power calculator that shows the system size thats right for your home and what your return on investment could look like.

Estimate your solar savings

Our calculator provides savings estimates based on the following:

  • Your location
  • Your energy usage
  • Current average price offered by solar companies in your area

We also outline what solar tax incentives and other rebates are available in your area that will help bring down the upfront cost of a solar power system.

Estimate Residential Solar Panel Cost

How much can you save with solar power?

The brunt of the expense with solar panels is in installation and the purchase of the actual panels.

» MORE: Compare solar loans and apply

Minimal long-term expenses can make up for the upfront costs. Most systems dont require much maintenance and are designed to last for 20 years or more with little change to the amount of electricity produced, Nilsen says.

When calculating the total price, consider how much energy you regularly consume your usage is listed on your monthly utility bill and what size system will generate the amount needed. Some tools, like the SolarReviews calculator, estimate the system size for you.

With installation, an average residential 5kW size system costs between $3 and $5 per watt, according to the CSE, which results in the $15,000 to $25,000 range. That cost is before any tax credits and incentives.

If you know your current energy usage, you can calculate how much youll need to pay for solar panels.

» MORE: Calculate your monthly payments on a solar loan

Then comparison shop for solar panels as you would other big-ticket items, such as a car or TV, says Vikram Aggarwal, CEO of the solar marketplace EnergySage. Some companies lower installation costs through rebates and other programs.

Aggarwal recommends getting quotes from three to five contractors. EnergySage compiles solar companies customer reviews, certifications, Better Business Bureau profiles and other information to help you find reputable providers.

Also Check: What To Look For When Buying Solar Panels

If You’re Likely To Move Home In The Next Decade It Probably Doesn’t Add Up

As it takes typically more than 10 years to recoup your installation costs, if you’re considering moving it’s probably not worth it .

While you could physically remove the panels from your old home and install them on the new one, this could prove costly. Plus, while you could still use what you generate yourself at your new address, you’d no longer get paid for what you export. To receive payments your panels need to be certified by the Microgeneration Certification Scheme and the organisation told us it wouldn’t certify panels that have been moved.

It’s also worth noting solar panel installations are tailored to each home to fit the roof and be positioned to maximise the level of sunlight they receive so it’s likely they wouldn’t perform as well if you installed them on a different home anyway.

Different States Different Rules

Just how much money can a homeowner make? That depends on a number of factors including ones geographic location, local regulations and power company policies. Here are a few examples from the U.S. Department of Energy:

California

The utility customer is credited for the net excess generated electricity on his or her next bill at the current retail rate. There is a 1MW system capacity limit and 5 percent aggregate capacity limit. The customer owns the Renewable Energy Certificates , but if the customer receives NEG payment at end of year, then the utility owns the RECs associated with the NEG.

Colorado

NEG credited to customers next bill at retail rate for electricity. At the end of the year, customers can roll over accumulated credit indefinitely and receive payment at hourly incremental cost. There is no specified aggregate capacity limit. However, the system capacity limit for IOU customers is 120 percent of customers average annual consumption.

New Mexico

NEG credited to customers next bill or reconciled monthly at avoided-cost rate. There is no aggregate capacity limit, but system capacity is limited to maximum of 80 MW RECs are owned by the utility.

In 46 of Americas 50 largest cities, a fully financed, typically sized solar PV system is a better investment than the stock market.

NC Clean Energy Technology Center report

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What Can Affect How Much I Get Paid For My Solar Energy

The main factor that affects what youre paid is how much energy you produce. Secondary to that is what you get paid for it. But of course how much energy you produce to sell isnt the same as the energy produced by your solar panels. You have to factor in how much you use too.

What you use is important as it can determine what you have left to sell back. So by using most of your power during the day, when there is solar, you stand to make more than at night depending on if you have battery storage. As otherwise that power is lost and youll be charged for what you need from the grid during those dark hours when youre not generating power.

As mentioned above the company that you sell to is also important as the rates of payment vary wildly from as low as 1.5p/kWh to 20p/kWh.

Of course the initial outlay affects all this too. Spend more and get the maximum number of solar panels and youre going to produce a lot more power than you need, meaning you have more to sell. But with the average charge for electricity greater than the amount paid to buy it back, youre still looking at a while to pay back the initial solar panel cost.

Solar Savings When Adding A Battery

How Much will Solar Save You | 2020

For arguments sake, lets add a top of the range, wiz-bang Tesla solar battery. Effectively, this allows the household above to use 100% of the electricity the solar system generates.

Continuing on from the example above:

  • A top of the range battery cost them $15,000. This took the overall system outlay up to $21,500.
  • The system allowed them to live completely free of grid electricity. This is saving them the on-grid electricity usage of $3,200 per annum.
  • The system paid for itself in roughly 8 years. For the next 17 years, the household paid no electricity bill. Over 17 years, this is a savings of $54,000.
  • Thats absolutely huge. Whats more, the battery allowed them to be completely in charge of their own electricity generation. Electricity independence. With the addition of a couple of useful peripherals, the same household managed to avoid the inconvenience of local blackouts.

    Also Check: How Much Does It Cost To Solar Power Your Home

    Can I Get Help With The Cost Of Solar Panels

    The government once offered various schemes which allowed you to get solar panels either part funded or totally paid for. Since the prices of panels have dropped so much the newest scheme, SEG, gives money back for selling electricity but wont cover the up front costs of solar panels.

    However, until March 2022 there is still a chance to use the Green Home Grant. This offers up to two-thirds of the cost of installing your solar panels on your home. For lowest income households that amount can be as high as £10,000 and in some cases it will cover the entire cost. But with this being phased out its not something to aim at if youre reading this now.

    The only other option is to take out a private loan to pay for the upfront costs. Since the solar panels will save you money on electricity bills, and can make you money through the SEG offering, you can pay off that loan over the years. But do keep in mind this is a longer term money-making solution so any loan with a rate of interest can mean it will take you even longer to cover your costs.

    Another option is to install yourself to save money on the upfront cost. But Josh Jackman of The Eco Experts doesnt recommend this. Youll end up paying around £3,000 more on the basic material if you do it yourself, according to our calculations, he says. And you wont get any Smart Export Guarantee payments, assuming youre not personally a Microgeneration Certification Scheme-accredited installer.

    Monthly Savings On Electricity

    It is very possible to cover all of your energy needs with a solar panel system of this size. In most cases, the way this works is that any excess solar energy that is produced is fed back into the grid and the owner is awarded energy credits. These credits can be used to redeem the same amount of electricity at a later point in time.

    Solar panel owners can save these credits during the summer months and use them during the winter to maximize their annual savings.

    With this setup, you can reduce your monthly bill to the absolute minimum, which can be anywhere from $5-$20 depending on your utility companys minimum payment. This means you will be saving anywhere from 80% to more than 90% of your bill each month.

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    How Much Do Solar Panels Save

    If youre interested in understanding how much money solar panels save on your electric bills, you first need to calculate how much youre spending on electricity every year. For example, the average annual electricity usage in a U.S. household is 11,000 kilowatt-hours . If you were to multiply that by the national average electricity rate . You would get how much youre spending on electricity every year. The typical American household spends around $1,430 dollars a year on electricity alone.

    2018 Solar panel savings estimates by state table

    State
    This is a solar panel savings table found on EnergySage.com
    Arizona

    If You Decide Solar Panels Are Right For You Find A Registered Installer And Get Three Quotes

    How Much Do You Save With Solar Panels? A Simple Guide ...

    As we’re MoneySavers, not electricians, picking installers isn’t our speciality. You can see the firms shortlisted for the British Renewable Energy Awards 2020, run by the Renewable Energy Association, or ask friends and colleagues for recommendations.

    The system and the installer should meet the standards of the Microgeneration Certification Scheme . And make sure the installer is a member of the Renewable Energy Consumer Code.

    As always, get at least three quotes, and get ’em in writing. When comparing quotes, check the following are included: scaffolding, removal of the existing roof and other roofing works, internal wiring works, sorting out a connection agreement with the energy supplier, electrical connection work, and a generation meter. Fitting the panels themselves is a one or two-day job.

    Once they’re fitted, registering your panels is a must you’ll need an MCS certificate, which you’ll use to register for smart export guarantee payments with a licensed energy supplier.

    Never borrow from solar companies to pay for the panels

    Some installers let you buy solar panels on credit. If you don’t have the cash upfront, panels aren’t for you. The loan’s interest could dwarf the savings.

    Solar panels are generally low maintenance

    The Energy Saving Trust says little maintenance is required on a properly installed, well-designed solar PV system, though you’ll likely need to replace the inverter a gadget that is a key part of the mechanism within about 25 years .

    Also Check: What Does Solar Power Do

    Calculating Annual Operating Costs

    Before purchasing a solar water heating system, estimate the annual operating costs and compare several systems. This will help you determine the energy savings and payback period of investing in a more energy-efficient system, which will probably have a higher purchase price.

    Before you can choose and compare the costs of various systems, you need to know the system size required for your home.

    To estimate the annual operating cost of a solar water heating system, you need the following:

    • The system’s solar energy factor
    • The auxiliary tank fuel type and costs .

    Then, use the following calculations:

    First calculate the amount of energy needed to heat water based on fuel use or gallons of hot water needed.

    Solarassist Is A Guide Only And The Outputs In Our Calculator Are Just Estimates

    Many variables can affect the price of your solar system, such as the quality of the panels you choose. There may be additional costs not factored into our calculator , which can affect your upfront costs and your savings.

    Every home is different! The next step to becoming a solar homeowner is to speak to a professional installer and determine what will work for you. He or she can help design a unique solution for your home and guide you through the process.

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    Variables That Impact On Solar Savings

    There is quite the list of variables that will impact the amount you can save with your solar system. Lets have a look at the key issues that impact the long term value of your investment.

    Your Home and Its Location

    Planning. Getting the Right System for Your Home

    Before you purchase, get informed about solar and speak with reputable professionals. You should also have a thorough understanding of your electricity usage throughout all stages of the year. Your current, recent, and past electricity bills are a great place to start.

    Include all the dreams and desires you have for renovations, new inclusions, and additions to the family. You want a system that will cover your future needs. If its not financially viable now to buy a size to cover the future, make sure the one you purchase is expandable.

    The more information you can provide a solar professional, the better advice you will receive.

    The best advice ever, aside from insisting on a quality system, is getting a system large enough to suit your situation. If you embark on your solar journey underpowered, its quite likely that youre are going to be disappointed.

    You are far better off to pay more money and get way more than you need than go undersized and have to address it later. If you have the roof space, get a system that covers much more than your usage suggests you need.

    Avoid Cheap Solar

    Lifestyle

    Are Solar Panels Efficient

    How much will I save with Solar Panels?

    Some solar panels convert 22 percent of their available energy into electrical power. This is an actually amazing number if you consider the fact that we are paying a lot of our electricity bills every month. The solar panels are made of solar cells. A cell is a small disk of a semiconductor like silicon. They are attached by wire to a circuit. As light strikes the semiconductor, light is converted into electricity that flows through the circuit. As soon as the light is removed, the solar cell stops producing power.

    A solar pool heating system uses the suns radiant energy to heat your water. The water is directed to the collectors, rising from the bottom to the top. As it gradually rises, its heated by the natural energy and then returned to your pool. This cycle continues until your pool water reaches the desired temperature. You can enjoy an added 10-13° to your water without any extra costs or air pollution!

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    Example Calculation: How Much Could I Save

    Heres an example of how much money you could save. Our system size calculator has been used:

    • The highest daily kWh consumption: 53 kWh
    • 42 kWh is the middle daily kWh consumption
    • 28 kWh is the lowest kWh consumption
    • Annual Kilowatt Use Calculated: 14,965

    This calculation shows that our recommended solar system size is an 11.59 kW system, which would be Florida Power Companys top-selling system. Here are the savings that we could make with an estimated production of 17,458 and 1,455 kWh each month. $2254 yr/ $187.83 per month.

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