One of the reasons for investing in solar panels is to save money. There probably aren’t very many, if any, people out there that purchase solar panels just for the look or fun of it. Instead, homeowners and business owners alike purchase solar panels because of the money-saving value that they offer.
Ultimately, solar panels can dramatically reduce or eliminate the majority of your electricity bill. Especially if you purchase high-quality panels and a battery bank system, you’ll be able to fully optimize your solar energy system.
Today we’re breaking down how much savings you can expect from different solar energy systems. By the end of this post, you should have a good idea of how much money you can save with a solar system and what you’d need to do to completely offset your home’s electricity costs with solar.
Step 1: How Much Are You Spending on Electricity
Before you can know how much you can save on electricity, you’ll first need to know how much you’re spending on electricity. One easy way to find this out is to look at your monthly electricity bill from your utility company. On that bill, you should be able to see how much you spent for the last month, as well as at what rate your electric company is charging you for the electricity.
Currently, the United States’ average cost for a month of electricity for any given household is $115. Depending on where you live, how big your house is, and how much electricity you use, this number could vary dramatically. In some cases, families can get their electricity bill below $50. In contrast, other families with large homes could spend upwards of $500 during the warm summer months when their air conditioners are constantly running.
After you see how much you spend on electricity, your solar installers will be able to put together a rough estimate of how many solar panels you’ll need to help compensate for your electricity usage.
Step 2: How Much Do Solar Panels Cost
Depending on where you live, who’s installing your solar panels, the type of solar panels you’re installing, and where they’re being installed, the cost of solar panels will fluctuate. For instance, at Sun Badger, we install only best-in-class solar panels that will produce energy effectively for years to come. Other solar companies may offer cheaper options that have a lower up-front cost but that don’t last as long, making them a more unreliable investment.
On average, you can expect a solar panel system that supplements your electricity usage to cost anywhere from $15,000 – $25,000. If you’d like the solar energy system to supplement more of your electricity usage, or if you’re looking to have a solar battery bank installed with the system, then you can expect that the cost will be much higher. Additionally, if you own a large home, the solar panels’ cost will increase because you’ll need more panels to power your home.
Other factors that can affect your solar energy system’s efficiency include the appliances that you own, how often you run your air conditioners, whether or not your heater uses electricity, and how efficient your home is.
Step 3: Estimate Savings
The easiest way to estimate the savings that you’ll get after you install solar panels is to determine how much your solar panel system costs and how much it will cost you to install the system. In addition, you’ll have to factor in how many kilowatt-hours that system is estimated to provide.
You can definitely use formulas to estimate these numbers, but the best way to estimate your solar savings is to use a solar calculator. This solar calculator from the Sun Badger team is a great way to get an estimate of how much you can save by adding solar to your home. Try out the calculator more than once to play around with different variables. Our team of solar experts can also help you determine some of the different variables surrounding solar savings.
Is There Still an Electric Bill with Solar Panels?
The short answer to this question is yes. You will still receive a monthly bill or statement from the electric company that keeps track of your utilities. In some cases, this statement may include a credit to you as a homeowner because of the extra electricity that your solar panels produce and pass on to your neighbors. In other cases, you may have to pay a small amount for the electricity that you use if your solar panels didn’t produce enough.
In any case, you’ll still be saving money, but you’ll need to stay connected to the main power grid. The only way that you’ll be able to not be connected to the grid is if you truly live off-grid in a remote location.
How Much Will Solar Panels Reduce Your Carbon Footprint?
Solar panels can dramatically reduce your carbon footprint. In fact, outside of saving money on energy bills, reducing carbon footprint is one of the main reasons that homeowners and business owners choose to install solar panels on their properties.
Solar panels will allow you to reduce your carbon footprint as much as you choose to supplement your electricity use for solar energy. A simple way to see how much you’ll be able to reduce your carbon footprint is to assume that for every kilowatt-hour your system is designed to produce, you’ll be able to eliminate the same amount of metric tons of carbon emissions. That’s a huge reduction. A 15-kilowatt-hour system will eliminate at least 15 metric tons of carbon emissions from your footprint.
Savings with Solar Tax Credits
One additional way that solar panels can save you more money this year than they will next year is the solar tax credit that the federal government is currently offering. With the solar tax credit, you’ll be able to get a federal credit on your taxes for up to 26% of the total installation cost. That cost can include any tree trimming, work done to your home or roof, and the overall cost of the panels as well as installation. The work that the tax credit will help with is essential to the installation of the panels.
This credit can also carry over to the following year if you cannot use it all at once. In some cases, there are also local and state incentives as well as offers from utility companies. If you’re going solar, be sure to choose a solar installer that is knowledgeable and willing to guide you through this process.
Solar Panels Can Offer Huge Savings
As you can see, solar panels can offer huge savings. Suppose you’re a homeowner or business owner that is spending a lot of money on electricity and looking to make your future brighter by ensuring that you won’t have to pay a premium for electricity. And, if the cost of electricity goes up, your savings will become even greater.
Solar panels are the future of electricity production for homeowners, and they’re only becoming more efficient, long-lasting, and valuable to those that have them installed. Reach out to Sun Badger Solar today to learn how you can save money on your electric bill by getting solar panels installed on your home! We can’t wait to hear from you!