How Much Do You Save With Solar Panels?

Beyond the fact that solar panels are ideal for the environment, they offer significant advantages through massive savings over their lifetime.

At present, the prices of solar panel systems are at a record low level. The cost of quality solar panels is quite affordable compared to what it was a few years ago. That’s way; it is possible to get a return on your investment as soon as possible. But, do understand that your return depends on several factors such as the current price of electricity, the cost of your solar panel system and the amount of sunlight you get each day.

Why Go Solar?

The continuing upward trend in electricity costs, in addition to the decline in the price of solar panel systems in recent years, makes solar energy an attractive investment opportunity for many homeowners.

Undoubtedly, the installation of solar panels has a high upfront cost, but this substantial investment is justified by the long-term savings that solar panels bring. Moreover, given that solar energy has recently become profitable, it is not an exaggeration to say that switching to solar energy is a step in the right direction for all homeowners. Here are some points to support this position:

Energy Costs

Over the past three to four decades, the average cost of electricity has continued to rise. On the other hand, the cost of solar energy has been falling in recent years. It is, therefore, a better option for the latter.

Power Supply Disruption

As electricity demand has continued to grow at a steady rate, the need to import large quantities of electricity to increase the limited quantities available has increased. And since imported energy is not as reliable as domestically produced energy, power outages have become common. However, with solar energy, reliability is ensured since electricity is produced at home, eliminating the problem of supply interruptions.

Durability and Low Maintenance

Solar panels are designed to last for a long time, and often require little upkeep to remain functional, which means you are more likely to recover a high return on investment from your solar system.

Environmental Issues

Solar energy is totally pure; it does not produce any water or air pollution, unlike the old electricity generated from fossil fuels. 

Self-Sufficiency

Solar energy allows homeowners to generate electricity at home, eliminating the need for utility companies to provide electricity. 

How Much Can You Save With PV Systems? 

The primary incentive to switch to solar energy is financial return, but money is not the only thing that solar panels can save. In addition to producing energy for you, solar panels are also useful for protecting the environment by reducing the greenhouse effect caused by carbon emissions into the atmosphere. So, when trying to determine how many solar panels can save for you, it is wise to look at the savings in terms of money as well as environmental savings.

Whether it is a financial or environmental saving, solar panels offer massive savings to homeowners, especially in the long term. They save you money by providing a natural energy source sufficient to power your home without carbon emissions. However, measuring the amount you can save with solar panels will depend on a few critical factors such as:

Your Current Electricity Rates

Although, in general, the higher your electricity rates, the more likely you are to benefit from solar energy. To get an idea of how much solar energy you can save, it is necessary to review your current electricity rate; you can do this by calculating your current annual electricity costs by multiplying the value of your annual electricity consumption by the current average rate (the value is not fixed), and then you will know how much you spend on electricity annually. 

Another important consideration is that public service prices do not remain static. Electricity costs have been rising steadily in recent years, resulting in variable electricity rates, but when you produce your energy with your solar panel system, you can lock in energy costs at a constant rate. 

Hours Of Direct Sunlight

The greater the exposure to the sun, the greater the amount of energy produced. This means that you have a higher potential for savings with solar panels. In states such as California and Arizona, where the average number of hours of sunshine per day is high, for most of the year, solar yields will undoubtedly be high.

Other important considerations are the orientation of your home towards the sun, your type of roof and the amount of shade your home receives, as they also affect the performance of a solar panel system, and therefore your electricity production.

Solar System Size

The size of your solar panel system is a critical factor in determining how much it can save you. The way you size your photovoltaic system is essential to know whether or not it will fully offset your electricity bills. Before installing your solar panels, your installer will need to accurately calculate the size of your solar system by calculating the number of solar panels you will need using a solar calculator.

The Cost of Your Solar Panel System

There is no doubt that the prices of solar panels have dropped considerably in recent years; they are still not cheap. Having a 6KW solar panel system at $2.96 per watt, installed in California, for instance, will cost $24,394 before any local incentive or the federal solar credit of 30% of the costs, and $17,760 after the repayment of the solar loan. However, in the long term, minimal expenditures will offset the massive initial investment. 

If you live in a community with high electricity rates, with moderate sunshine most of the year, and you can afford the initial investment. Then, installing solar panels in your home will be a step in the right direction, especially since the 30% tax break is still available, benefiting your pocket and the environment.

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