Solar energy is the new thing in conscious energy these days, and with so many trendy investment opportunities, it’s hard to know if investing in something is really going to “save you tons of money.” So, do solar panels save money? Is solar worth it? How much do solar panels for the home cost?
Saving money by reducing your electricity bill by cutting down the amount of energy you use is no fluke. Solar panels give you the ability to save money by creating a natural source of energy that has the ability to power your home and heat your pool. If you’re looking to save a ton of money, it really depends on a few key factors:
- Direct hours of sunlight
- Local electricity rates
- Size of your pool
How Much Do Solar Panels Save?
If you’re interested in understanding how much money solar panels save on your electric bills, you first need to calculate how much you’re spending on electricity every year. For example, the average annual electricity usage in a U.S. household is 11,000 kilowatt-hours (kWh). If you were to multiply that by the national average electricity rate ($0.1301). You would get how much you’re spending on electricity every year. The typical American household spends around $1,430 dollars a year on electricity alone.
| State | Average Price (6 kW Solar System) |
Average Electricity Rate Per State ($/kWh) |
20-Year Savings |
|---|---|---|---|
| This is a solar panel savings table found on EnergySage.com | |||
| Arizona | $11,214 | 0.1226 | $16,866 |
| California | $13,566 | 0.1877 | $49,424 |
| Colorado | $13,314 | 0.1202 | $14,216 |
| Florida | $10,584 | 0.1247 | $17,976 |
| Massachusetts | $13,818 | 0.1936 | $30,523 |
| Maryland | $11,550 | 0.1335 | $19,026 |
| New Jersey | $13,188 | 0.1534 | $19,655 |
| New York | $14,154 | 0.1781 | $26,637 |
| Texas | $12,390 | 0.1140 | $13,720 |
| Washington | $11,802 | 0.0973 | $10,483 |
How Does Solar Energy Save Money?
If your average monthly electricity bill is high, and you’re living in an area with high energy rates then it’s worthwhile installing solar panels in your home while the 26 percent tax break is in place. It is not only amazing for your wallet but also good for the environment. Here are a couple of reasons why you should invest in solar panels:
- The price of energy is not dropping
- The cost of installing solar panels has improved and prices have fallen
- Installing solar panels provides a long-term subsidy benefits
- Save money on your pension by reducing energy costs on your monthly electricity bill
- Solar panels are long-lasting and require little upkeep
How Much Does It Cost to Install Solar Panels?
How much does solar cost to install? On average, it costs around $13,142 to install a solar system. How much it costs to install solar panels depends on how many solar panels you need to generate energy for your home. The good news is, how much solar panels cost upfront is offset by the savings and return on investment they earn.
The average cost of solar panels and their upfront cost can be offset by the federal tax credit, which currently sits at 26 percent. After 2020, the tax credit will step down to 22 percent. So the sooner you take advantage of the full credit, the better. The federal tax credit was created to encourage investment in solar systems and renewable energy, and claiming it is a matter of filling out the right IRS Form.
Besides the federal tax credit, solar panels increase property values while lowering utility bills. Compared to gas or electric heating systems, solar panels save you much more in the long-run. Your solar panel system can pay for itself in three years!
Are Solar Panels Efficient?
Some solar panels convert 22 percent of their available energy into electrical power. This is an actually amazing number if you consider the fact that we are paying a lot of our electricity bills every month. The solar panels are made of solar cells. A cell is a small disk of a semiconductor like silicon. They are attached by wire to a circuit. As light strikes the semiconductor, light is converted into electricity that flows through the circuit. As soon as the light is removed, the solar cell stops producing power.
A solar pool heating system uses the sun’s radiant energy to heat your water. The water is directed to the collectors, rising from the bottom to the top. As it gradually rises, it’s heated by the natural energy and then returned to your pool. This cycle continues until your pool water reaches the desired temperature. You can enjoy an added 10-13° to your water without any extra costs or air pollution!
Conclusion
Solar panels and solar panel systems will save you money and bring a return on your investment in no time. Rising property values, lowered utility costs and the federal tax credit all ease the upfront costs of installing solar panels. Since the price of energy isn’t dropping, investing in solar energy is the smart move to save money, with the added bonus of shrinking your carbon footprint!
