Do Solar Panels Cut Costs?
Solar panels are leading the way in the conscious energy field at the moment and with so many trendy investment opportunities with high upfront costs, it is hard to know whether solar panels save you money.
Saving money with solar panels is no doubt a real thing, and reducing the price on your electricity bill by cutting down the amount of energy you use is no fluke.
Solar panels save money by creating a natural source of energy that has the ability to power your home. So, if you want to learn more about solar panel costs and find out how people are saving money with solar panels, keep reading.
How Can I Save Money With Solar Panels?
If you’re looking to save money with solar panels, it depends on a few key factors:
- — Direct hours of sunlight
- — Local electricity rates
- — Size of your pool
If you’re interested in understanding how much solar panels will 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 around 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.
Will Solar Panels Cut Electric Bills?
So, the answer to whether solar panels save money is YES!
With electricity rates rising all the time and the national average rising already this year, it looks like solar panels will be a good investment moving forward.
The IER recently found that the average price of electricity in America rose by 34% in ten years between 2005-2015. Whilst solar panels save money on bills now, if the trends continue the way they are expected too, it looks like the savings could be massive in the future.
Moreover, in terms of heating your pool, Solar Powered Heat Pumps are a much more cost-effective option too and cost very little to run relatively. In most states, the cost of running a heat pump is around the same as running a bulb— $1-2 per day.
Solar Panel Costs
This handy table from EnergySage.com breaks down the average price of electricity so that you can see how much you could save with solar panels.
| State | Average Price
(6 kW Solar System) |
Average Electricity Rate
Per State ($/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 |
Reasons to Install Solar Panels
If your average monthly electricity bill is high, and you’re living in an area with high energy rates than it is worthwhile installing solar panels in your home while the 30% 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.
- — Solar panel installation 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.
Do Solar Panels Save Money?
YES! Solar panels save you money on your electricity bills.
Some solar panels convert 22% 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.
To find out how much money you can save with solar panels, take a look at our resources throughout the site and contact us for more information.
