How Much Money Do Solar Panels Save

The most common question we get asked on a day to day basis is, "Do solar panels really save you money, and if so, how much?" The answer is, solar panels will and absolutely should save you money, so long as you go with a trusted solar energy company that gives you a fair price and installs your system correctly. How much they will save will obviously depend on the size of the solar system installed and the energy needs of the property, but we can give you an average rundown of the savings you can expect to see.

Long Term Benefits of Solar Panels

Solar panels are an investment, just like solar lights or solar cars. You have to put money into solar energy in order to get money out of it in terms of energy savings. If you're buying solar lights for your front porch, they will save you some bucks on electricity when compared to traditional lamp light bulbs that use 100 times more electricity. If you are buying solar panels, the same rule applies. The more solar panels you buy and install on your roof top or wherever they are to be installed, the higher the upfront cost will be in return for a lower operating cost over time.

What is the national average electricity rate?

An average home in the United States will use about 11,000 kilowatt-hours (kWh) per year, which amounts to spending approximately $1,500 a year on their electricity bill. The national average electricity rate is about $0.12 per kWh. Now, the cost per kWh in our part of North Carolina hangs out at about $0.11. The average annual solar production for homes with solar panels in North Carolina is about 8,000 kwh. Now, this is obviously just the numbers for a standard home. You can imagine what the power production and usage for a large commercial sized building would be.

How much does it cost to install solar panels?

Currently the average cost to install a solar system in America is about $15,000 - $17,000 for a kw system. However, take into consideration that the federal solar investment tax credit (ITC) is at 26%, so this will give you a rebate of around $3900 - $4400! The solar savings and tax incentives can be especially beneficial for those who may not have the best credit history or those that don't think they could afford solar panels. The federal solar tax credit will remain at 26% for the rest of 2021, and then will drop to 22% in 2022 and continue to decline as years go on! That means that right now is literally the best time for you to make the switch to this renewable energy source!

What are the upfront costs of solar?

Many people worry about the heavy upfront costs, but Performance Solar Energy Greensboro performs all their solar panel installations for $0 down and offers financing options that can be lower than your current utility bill. The best way to find out how much it will cost for a solar panel installation is to call one of your local companies like Performance Solar Energy Greensboro to come out for consultation. They will accurately be able to tell you your solar panel costs and what you can expect to save on your electric bills when you provide them with your typical electricity consumption.

If you are still concerned about solar being too expensive, you can look into power purchase agreements. In this financial agreement, you can have solar installers come to your home or business and a majority if not all of the solar panel cost will be taken care of by the developer. They will sell you the energy that the solar panel system produces for a lower fixed rate meaning you will still see a significant reduction in your electric bill. Now, keep in mind your savings on energy bills and overall lifetime savings won't be as high as if you owned the solar energy system yourself, but this type of solar purchase is a viable option especially if you don't qualify for the federal tax credit.

How many solar panels to power a home?

The typical residential home requires a 6 kW solar power system to produce enough energy for adequate electricity. This is typically anywhere from 15 to 25 solar panels installed. While more solar panels will mean higher installation costs at first, having enough solar panels installed is what will save money on electricity bills for years and years to come. Solar panels produce energy at their peak for around 20 to 30 years and require little to maintenance. The typical payback period for a solar system installation is around 6 to 7 years, meaning the rest of those years will be nothing but lower energy costs and fantastic solar savings.

Excess energy and net metering

The ultimate goal for us when we perform your solar installation is eliminate your power bill. Yes, you will still always receive a bill in the mail, but that bill can be for $0. Now, net metering also will come into play. This is a complex term that essentially means if your solar panels produce more energy than your home or business needs, that excess electricity can be sold back to the grid and you will receive credit for it. So if you produce more solar energy than what your household needs, for example, and that solar energy is sold back to the grid then you will be paid. This can increase your solar savings rate by $0.15/kWh or even more!

More Solar Incentives

One other way that solar will put money back into your pocket is through your property value instantly increasing as soon you have a solar panel installation! Studies show that the value will go up a whopping $6,000 per each kilowatt of energy produced! Solar panels are quite literally one of the most valuable additions you can add to your home!

The money solar panels save

We know what you've been waiting for. After all that's been said above, between lower utility bills, solar costs, the federal tax credit and so forth, how much money does a solar energy system actually save? If you look at the overall average savings over a 25 year span for a resident in North Carolina, years with the cost of installation included is, drum roll please... Between $30,000 to $40,000! That's right, you can save all that money while also doing a huge favor for the earth by reducing the need for greenhouse emissions and lowering your carbon footprint!

Increasing electricity costs and demand

It's no secret, the electricity demand continues to increase and the utility company is going to continue charging more and more for your monthly electric bill. Inflation of electricity rates seems to happen on a yearly basis nowadays. That's where solar companies like us come in. Every environmentally friendly solar panel we install is more electricity costs reduced and more energy produced to power residential homes and stop the climate crisis.

Save money with your solar panel system

Yes, solar panels are a large investment, there is no doubt about it. But, with all the ways this renewable energy can save money, whether it be solar tax incentives,  lowering your electricity bill from the utility companies, and our unmatched prices, there is truly no better time to make the switch to solar energy. Give us a call and get to setting up a free no obligation consultation, or to ask any questions that you may have. You have nothing to lose and everything to gain!