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How Much Money Do You Save With Solar Panels?

How Much Money Do You Save With Solar Panels

Are you thinking about making the switch to renewable energy? Renewable energy, such as a commercial solar power system, is a great way to reduce your carbon footprint and save money on your energy bill. But how much money will you actually save by switching?

The answer depends on a number of variables, including the availability of incentives in your area. For example, people who install solar panels for home use in Florida qualify for a 100% exemption from property taxes.

Of course, you have to factor in solar panel cleaning, annual inspection, and other maintenance costs, but all in all, solar energy can result in significant savings every year.

Read on to learn more about how much solar panels save you when you switch.

Do Solar Panels Really Save You Money?

The short answer is yes - this energy source can save you money on your energy bills. But how much savings from solar panels you get depends on a few factors, including the size of your PV panel system, the amount of sunlight your house gets, and the rates your utility company charges for electricity.

Electricity cost is possibly the best yardstick you can use to determine whether or not solar is a good idea. This is because the costlier your power bill, the more you can save by generating your own power.

How Much Money Can Solar Panels Save You On Electric Bills

According to estimates from 2020, the average home in the US uses around 11,000 kilowatt-hours (kWh) of electricity a year. This translates to about $2,000 per year on electricity.

If you have 7 PV panels that deliver 400W per panel and live in a sunny location like Florida where you can get an average of 5.25 peak sun hours per day, you will be able to generate almost 800 kWh per year. This will offset your electric bill by about 50%.

When you look at this figure, you will agree that the savings on solar panels make investing in it an excellent idea.

To explore another geographical region, according to a detailed guide on renewableenergyhub.co.uk, the cost of solar panel systems in the UK starts from around £2500 and can exceed £20,000 depending on various factors including the type and number of panels, and the complexity of the system.

Moreover, geographical location plays a significant role in determining the return on investment (ROI), with areas having more sunlight hours or higher traditional fuel costs offering a quicker payoff period. Various incentives and schemes are also available to aid individuals in saving more on their energy bills through solar panel installations.

How Can You Save More By Going Solar?

Solar is a great way to save money, but how much can solar panels save and how can you make the most of it?

Solar install

Get Those Tax Breaks

First of all, there are tax breaks and incentives available for homeowners who install PV panels in their homes. The most popular is the Federal Solar Tax Credit which allows homeowners to deduct 30% of the entire cost of installing a PV system from their federal taxes.

Depending on where you live, these savings may range from around $5,000 to over $20,000! These incentives help offset the cost of installing PV panels so that you don't have to pay as much for them upfront.

Avoid Price Increases

Another way to save money is to prevent price increases by owning your equipment outrightly.

If you lease your PV equipment or work with a utility company, you will be making payments on your lease each month to the company or developer. Depending on the contract you sign, there can be price escalators or other provisions stealing the money you had hoped to save by installing a solar system.

Average Price Of Residential Electricity By State

The cost of electricity is one of the most important factors to keep in mind when considering how much you can save with solar panels. But just how much does electricity cost around the US?

According to the Bureau of Labor Statistics (BLS), the average cost of residential electricity in the US is $0.167 per kilowatt hour (kWh). However, this amount can vary widely by state. For example, the average cost of residential electricity in New York is $0.249 per kWh.

To check the most updated pricing per state, please visit the EIA website.

Are Solar Panels The Right Choice For Your Home?

If you're thinking about switching, you want to know how much money you save with solar panels, and whether it is a good idea for your home or not. The following pointers can help you make your decision.

First, look at your energy usage. How much power do you use on a daily basis? If you use a lot of power, you may want to consider PV as a way to offset your energy costs.

Next, take a look at your roof. Does it get a lot of sunlight? If so, PV panels may be a good option for you.

Finally, consider the cost of installation and maintenance. Be sure to factor in any government incentives or rebates that you may be eligible for. PV panels can be expensive to install, but they require little to no maintenance once they're up and running.

If you weigh the cost against your current power bill and see that PV panels are going to save you money in the long run, then they're probably a good choice for your home.

solar panel

Summing Up

Whether you're curious about clean energy or are ready to make the switch, finding out how much energy solar panels save is a good first step. And from the discussions above, it is obvious that switching makes a lot of financial sense.

But if you're still not sure, you can always consult with a professional. A professional installer like PPM Solar can answer the question "how much can I save with solar?" and share more pointers on how to make the most of your system.

Get in touch today for more information.

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