How Much Can You Save With Solar?
One question we get asked virtually every single time we speak with a homeowner about installing a solar system is, “How much money can you really save with solar?” While the general answer is that you can greatly reduce or completely eliminate your electric bill, determining your true solar savings is actually influenced by several factors, including how you are financing your system, whether you are taking advantage of the federal tax incentives (NOTE: This federal incentive goes down at the end of this year, 2020), and how much you are currently paying for the electricity portion of your power bill.
Generally speaking, the more solar energy you produce, the less electricity you have to buy from the utility company to power your home. That means you start realizing savings on your utilities bill as soon as your solar system is installed and activated.
The easiest way to estimate your electric bill savings is to enter your home address into this online solar savings calculator. The next step is to call 714-910-2906 to get more details. An energy consultant will help you determine whether your average electricity bill is high enough to warrant the switch to solar (generally the threshold is a minimum of $75 per month on your electricity spend).
Then, you can begin to decide if solar is right for you. For example, can you generate enough solar energy for your family’s needs? Do you have excessive shading on your roof? Does your local utility have solar-friendly policies?
Answering those questions will help you find out how much solar panels can save you on your utility bill each month.
How Much Do Solar Panels Save?
Most people going solar want to know how much solar panels can save on electricity bills. But there are other financial benefits that determine how much solar really saves that you should take into account. Solar can help you:
1 – Protect yourself against electricity rate hikes.
Easily the biggest reason people go solar is to reduce their energy bill. A typical American family spent about $1,335 on electricity alone in 2018, and national electricity costs typically rise at a rate of about 2.2% per year. In some areas, energy prices spike sharply based on the weather or demand on the energy grid at certain times of day so going solar can allow you to lock in a set energy price.
2 – Increase your home’s value.
By reducing or eliminating your electricity bill, adding a solar panel system is almost always a good real estate investment. According to a recent Zillow analysis, depending upon where you live, solar can increase home values by 4 percent.
3 – Take advantage of the currently available federal tax credits.
The federal solar tax credit, also known as the solar investment tax credit (ITC), allows homeowners who have their solar system installed by the end of this year to deduct 30 percent of the cost of their solar purchase from their federal taxes. The credit is set to scale down to 26 percent in 2020 and 22 percent in 2021. If your tax bill isn’t big enough in one year to accommodate the credit, it can be rolled over to the next year for as long as the credit is available.
Find Out How Much You Can Save With Solar
Your exact return on investment is also affected by which solar payment option you choose: cash purchase, finance or lease options all have financial benefits and variable timeframes for you to realize your solar panels savings.
But given that you’ll be able to either reduce or eliminate your electric bill, lock in your electricity rate, increase your home value, and potentially take advantage of the solar tax credit and/or local solar incentives, the return is likely to be in the tens of thousands over the life of your solar system.
REPOWEROrange warrants its systems (power production and equipment) with a 25-year Complete Confidence Warranty, and our systems have an expected useful life of 30 years, so once your system is paid for, you’ll enjoy many years of savings.