How Much Do Solar Panels Save You?
With more and more countries promoting renewable energy, more and more people are just beginning to realize the benefits of solar panels, even though they were discovered a few decades ago. In addition to tax incentives and savings on electricity bills, they provide a sense of satisfaction in knowing that you are helping the environment in your own way.
However, since solar energy savings are generally not cheap, people want to be sure that they will get a return on their investment in a few years and that the savings on their bills will offset what they have spent. If you are one of those people, then this article is for you.
This article will look at the potential savings that can be achieved by switching to a solar alternative, so that you can make an informed decision whether or not to switch and whether solar panels save a substantial amount of money.
How Much Will Solar Panels Save?
Of course, the decision to purchase a solar system can depend heavily on how much do solar panels save you. There is no specific reserve amount because the magnitude of the return on investment will depend on the type of system, the coverage of the system and the financing chosen for the solar system. However, there is a guaranteed saving, whether on the energy or electricity bill. Basically, a family can save between $10,000 and $30,000 over the lifetime of the system.
If an average American household pays about $1,400 a year for about 1,000 kilowatt-hours, then solar panels save more than 90% of that amount by being solar-dependent. Considering that there is an annual rate of increase of 2.2 percent for grid dependent electricity, the amount of savings also increases each year, so a household saves a lot of money by switching to solar. If electricity costs in your state are higher, then the more you give up using these solar wonders.
Aside from the solar panels help with the electric bill, they also provide substantial savings through tax credits. These credits can range from 20% to 30%, extra money that can be used for other expenses. In the next section, we will discuss the expected electricity bill after the installation of solar panels.
Your Electric Bill After Buying Solar Panels
To objectively evaluate how much do solar panels save you, it’s a good idea to look at the numbers on your electrical bill and compare the values more closely. How much is the reduction in your monthly electricity consumption after switching to a solar system?
Before getting to the heart of the matter, however, you should know that there are several aspects that affect your electricity bill. These include your system’s energy output, local utility rates and your home’s energy consumption. Power output will be based on the size of your system, whether you have a 6kW system or if you have a large household, about 10kW.
Next, ask yourself how much the local utility rates are in your area. Some states have higher rates than others. To be more specific, Washington, Arizona, and Florida have rates below $3 per watt. Iowa, DC, and Rhode Island charge about $3 and 30 cents per watt. So the calculation of how much do solar panels save you depends on how much your state pays you for your utilities.
The last thing to think about is the energy consumption of your home. What are your appliances and what is the consumption of each of them? On average, the energy consumption of an American household is about 900 kWh per month. Multiplying the average monthly energy consumption by the average rate per kWh, the average monthly bill is about $115.
This is the amount you will save if you fully power your home with solar panels. Some people get a negative bill for using solar energy, which means that solar panels save them the entire cost of electricity. This means that not only do they not use electricity from the grid, but they even contribute to the community’s electricity supply.
Others receive a reduced amount and are only charged for service fees and a few dollars for consuming more than their panels actually produce. Therefore, it will be helpful to better understand your energy use, energy rates and system output before taking action. You can easily obtain this information by consulting solar system suppliers for a quote.
How Solar Panels Can Help You to Reduce Carbon Footprint?
Solar panels help to reduce carbon footprint in several ways. Before discussing the issue of reduction, it is good to understand what the carbon footprint is. The carbon footprint is the contribution of a person (or equipment) to the build-up of carbon in the atmosphere through their activities.
The more non-renewable resources a person uses, the larger their carbon footprint. This means that a person driving a car has a higher carbon footprint than a person driving a motorcycle or walking daily.
Similarly, a person who uses grid electricity produced by burning fossil fuels such as coal or oil has a higher carbon footprint than a person using energy produced by solar devices. That person will have an even smaller carbon footprint if he or she uses a solar-powered electric car instead of a diesel vehicle.
By turning your home into a solar-powered home, you can save the planet more than 15,000 pounds of carbon dioxide emissions per year. Not only do you save money by not paying your electricity bills the way you used to, but you also make a significant contribution to keeping the planet warm and habitable. This is an even more important accomplishment because it will have an impact not only on you but on everyone else on the planet. It’s really a new thing to do.
Solar energy is not cheap. However, if you think about all the benefits it will bring, both financially and environmentally, you will find that every dollar spent is worth it. However, to make this big change, you need to assess your costs and the most efficient system you can get based on your consumption.
By making that first decision wisely, you will allow your system to run longer and your bills to stay low for longer. It will be helpful to seek expert help or quotes before purchasing your panels to make a more informed decision.