What are the Costs & Savings Associated
With Installing Solar Panels?
Solar panels are an effective way to reduce your energy costs, as well as an excellent choice to reduce your carbon footprint. But many property owners ask, “Do solar panels really save money?” The answer to that question is yes, but the amount of savings that you will enjoy depends on many factors.
Things like how much sunlight your region receives, your local electricity rates, and the shape, size, and angle of your roof are all things that you have to consider when calculating how much you will save. For most, the one-time investment of installing solar panels will end up saving them a lot over the long term.
How Much Money Do You Save With Solar Panels?
The first and most important step to determining whether solar panels are a wise investment for your home or business is to calculate your current energy consumption. In October of 2020, the average American family spent $1,450 a year on electricity consumption alone. Then, you have to take into account the variable nature of electricity rates for the future.
Many forecasters predict that electricity costs will rise considerably in the future, making your overall investment that much greater. In the past 10 years, electricity rates have increased an average of 2.2% annually.
When you produce your own energy via solar panels, it is like locking in your energy costs, so you are no longer beholden to rate changes and how they will affect your yearly budget. Solar panel installation will help maintain a constant rate.
There is an upfront investment to installing solar energy, but it is a one-time investment. Not all solar panel installations, however, will completely offset your energy costs.
To figure out how many solar panels you will require to offset your consumption, you have to calculate the size of your solar panel system. Your location will also be a factor in how much you can recoup over time when you invest in solar panel installation for your home or business.
Will You Still Have an Electric Bill if You Install Solar Panels?
The common myth that most people have about solar panels is that they will make your electricity bills go away completely. Regardless of your solar panel system, if your property is grid-connected, you will still get an energy bill.
But that doesn’t mean that you will always owe money. Net metering means that you can exchange whatever energy your solar panels produce for credits on your electricity costs.
It allows your property to draw energy from the grid at nighttime or when the sun isn’t shining - without paying additional money. If the amount of energy you harvest is equal to your bill, then you will have a zero balance or no energy bill. The energy you harvest will offset whatever your energy consumption is.
So technically, yes, you will receive an electric bill after installing solar panels. The cost, however, might be zero, and simply be a summary of your consumption. If your consumption is considerably more, then the credits will roll over into the following months.
By installing solar panels, your energy bills will be lower than what they once were.
How Much Can Solar Panels Reduce Your Carbon Footprint?
For eco-conscious consumers, solar energy isn’t just about saving money - it is also about reducing their carbon footprint. By installing solar panels, you are helping to cut back on greenhouse gas emissions.
According to the Environmental Protection Agency, you significantly reduce your carbon footprint and positively impact the environment by installing solar panels on your property.
Solar Panels Can Lead to Big Savings
In general, solar panels can make a significant difference for many residential and commercial properties. Depending on the cost of electricity and your consumption, you can save anywhere from $10k to upwards of $30k over 20 years.
It also will help to reduce Co2 in the environment, which makes it a green investment. When you consider things like 100% financing and tax incentives, the savings can be significant.