– How much Solar Panels Save –
How much solar panels Save: Solar energy seems to be the order of the day when it comes to generating power. In the United States, it is a rising business with a considerable growth ratio.
Despite this growth, there are some people who still do not fancy making use of solar panels. This is associated with the idea that solar panel, their maintenance, and installation is expensive.
Is this true? Is solar power usage expensive? Can one actually save money from making use of solar panels or power? If yes then, how much do solar panels save?
What is Solar Panel?
Solar panels are panels that absorb sunlight as a source of energy to generate direct current electricity. Solar panels are an increasingly affordable energy solution, with a nine percent drop in price from 2016 to 2017 alone.
Though the importance of solar panels seems to be enormous, there are several questions bordering on the cost.
Are there Hidden Costs of Solar Panels?
Tenable questions tend to arise regarding the cost of solar panels. Questions like: If the average installation on a residential home costs about $16,800 before tax credits, is that all the investment required?
Please note that solar panels also need annual maintenance which falls on the shoulders of the homeowner. Depending on the state you are in, your rooftop solar panels may be subjected to a yearly inspection by the relevant authority.
These inspections usually cost around $150 per year. On top of the annual inspection, the fee is the required for yearly cleaning as well.
How to Pay for Solar Panels
If you are interested in solar panels, there are a few options on the table for you. However, know that the rebates, tax incentives, and loans vary significantly from state to state.
A good place to start looking for financial assistance for residential solar panels is through your local utility. Utilities may offer a rebate on per watt of installed capacity basis.
Finally, a personal loan is another option, and some states even have options specific to the alternative energy market.
Do Solar Panels Save Money?
Those making use of alternative sources of energy are often concerned with how much they can save. When making use of solar panels you should know that the benefits take time to develop.
You must know that after the initial investment has been paid off that is when the solar panel savings start rolling in.
In most cases, the investment period is 20 years. By year 20, the home owner has paid back their investment and also earned roughly $7,000 in additional solar panel savings.
How much Solar Panels Save: Key Points to Consider
- Solar panels cost money upfront but will save you money in the long term.
- The average home can save between $10,000 and $30,000 over the lifetime of your solar panel system.
- Start comparing custom quotes on the energy sage marketplace to see your estimated savings from solar.
Understanding How much Solar Panels Save
The first step to understanding how many solar panels can save you is to calculate how much you are currently spending on electricity every year.
Then, also consider the volatile nature of electricity prices and determine what utility rates will be in years to come. When you compare the cost of utility electricity with home solar, you should keep in mind that you can expect electricity rates to increase annually.
Because of the nature of solar as an up-front investment, the only costs associated with a solar system will be the cost of your installation and any added electricity costs in the event that your panels do not completely offset 100% of your electricity use.
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Do you still have an Electric Bill with Solar Panels?
Please be informed that, even if you install solar panels, you will still receive an electric bill from your utility as long as your property remains connected. However, this doesn’t mean you will always be paying money on your bill.
In other words, you will still receive an electric bill when you install solar panels. Importantly, the bill may not ask you to pay anything, and may simply indicate how your usage was offset by net metering credits for the month.
In the case where you provide more electricity to the grid than you pull, your utility will usually roll over your unused bill credits to the next month for you to take advantage of.
How Using Solar Panels Save You Money
When you install solar panels on your roof, you are essentially turning your home into its own mini power plant. You generate renewable energy, reducing or eliminating your electricity costs altogether.
The savings you may have by using solar panels are dependent on two simple factors: The price you currently pay to buy electricity from the grid and the price you will pay to generate your own electricity with solar.
Comparing Solar Panels and Traditional Energy Costs
Going by the United State’s Energy Administration, the current average cost of electricity from the traditional grid is 12.75 cents per kilowatt hour (kWh). This is a nationwide average.
in mind that these prices continue to rise each year. Historically, utilities display an upward cost trend. On average, prices have risen about 2.5% every year in the United State.
In California for instance, utility companies are raising their rates by at least 5% annually. It’s not unusual for these rates to fluctuate suddenly leaving customers subject to insanely high electricity prices.
Comparing Solar Panel Savings and Cost of Going Solar
The average price you will pay for electricity through solar in the United States varies by state. As well as installer, manufacturer, your home’s specific installation, and many other factors.
If you live in a state like California where the solar costs are considerably lower than electricity costs, you can most definitely save money with solar.
Even if your electricity rates are not as high as California prices, going solar can still save you money.
Types of Savings in Solar Panels
1. Short Term Savings
These bare savings you will see pretty much at the start of having your solar system turned on. If your loan or lease payments are lower than your costs now, you have day one savings.
2. Long Term Savings
These are savings you may not see right away, but you will see either once your solar loan is paid off. Also, you can see these savings when your electricity bill rises higher than your solar payments.
If you have a 12-year loan, after year 12 the loan is paid off and you will have no electricity costs. You will end up saving thousands more over the lifetime of having your solar system than you would have without going solar at all!
The funny thing you should take home is this. Regardless of going solar or not, you will continue to make an electricity payment every single month for as long as you require electricity.
The electricity grid will continue to fluctuate and electricity costs will peak at unexpected moments over the course of a year.
As such, with solar, you can avoid these issues by taking control of your costs. Through solar, you pay a fixed monthly loan payment with an end date and eliminate your electricity bill completely.
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