Switching to solar energy can be seen as expensive, but the money that can be saved in the long term makes solar a financially worthwhile investment. So, let’s answer the questions: How to save with solar?!
Homeowners who live in areas with high electric costs can see their utility bill gradually shrink with the installation of solar. According to the United Sates Department of Energy the exact amount you will save on solar depends on electricity consumption, solar system energy size, whether you purchase or lease your system, direct hours of daily sunlight, size and angle of roof, and local electricity rates. Local electricity rates tend to play the biggest factor when it comes to saving on solar systems. If the costs of generating solar are lower than your current electric cost, then you will see savings by switching to solar.
Savings over the next years
Our solar PV chart allows you to calculate how your current electric bill will change over the next 25 years (25 years is the guaranteed lifespan of a solar system). This chart displays how inflation will continue to increase your electric prices.
Example monthly bill: $150.00
Inflation: 5%
| Year |
|
Electric Bill |
|
| |
Monthly |
Annually |
Cumulative Total |
| 1 |
$150.00 |
$1,800.00 |
$1,800.00 |
| 5 |
$182.33 |
$2187.91 |
$9946.14 |
| 10 |
$232.70 |
$2792.39 |
$22,640.21 |
| 15 |
$296.99 |
$3563.88 |
$38,341.41 |
| 20 |
$379.04 |
$4548.51 |
$59,518.72 |
| 25 |
$483.76 |
$5805.18 |
$85,908.78 |
Need less than you produce and get credit for it: Net Metering
Installing solar panels does not mean that your electric bill will just vanish. As long as your property is connected to the grid you will still receive an electric bill. This does not mean that you will have to pay anything. Net meteringis a policy that is active in most states in which solar energy that you don’t immediately use is sent to the grid in exchange for credits. Credits from one month can roll over and be used to offset any energy you might have taken from the grid. Most of the electric bills won’t require you to pay anything and simply display usage and how your credits have offset your energy usage. There will still be a small monthly fee for delivering the electric.
Increase the value of your property
Adding a solar system is considered an upgrade to your home and will help increase your property value. According to a study by the Lawrence Berkeley National Laboratory, the addition of a solar system increases the value of a home on average by $15,000. So don’t worry about leaving a solar system behind if you want to move, the added home value will give you a good return in addition to what you have already saved by using the system.
The amount of carbon emissions you will offset will depend on the size of your solar system. Larger solar systems will offset more emissions. The Environmental Protection Agency has a formula to calculate the amount of carbon emissions that your system will offset, 7.44 × 10-4 metric tons CO2 / kilowatt-hour of energy produced. Even a smaller 2-kilowatt system can reduce carbon emissions by almost 2 metric tons in one year.
Switching to solar is all about saving. Saving money in the long run with utility bills, saving the amount of carbon your property is emitting into the atmosphere and even adding to your assets in the form of increased home value. Now you know how to save with solar! If you want to know how you can save just contact us.
