Many people go solar because they want to save on their electricity bills. However, it takes some planning to maximize the energy savings that come with solar.
Government incentives can significantly reduce the upfront cost of solar panel systems. There are also ways to increase bill savings with policies like net metering and time-of-use rates.
Look for Rebates
You’ve probably seen solar panels on your neighbors’ roofs, but have you wondered: “Do those save them money?” The answer is that solar energy can significantly reduce or even eliminate your electric bill, depending on your household size, where you live, and how much sun your property gets. In addition, the federal Investment Tax Credit can knock thousands off of your installation costs, and many states offer rebates and incentives to help with startup costs.
Another way solar can lower your electricity costs is through programs like net metering and time-of-use rates. Under these programs, homeowners with grid-tied solar power systems can give excess electricity back to their utility company in exchange for credits that can be used against future bills. This is particularly valuable in areas with high peak energy usage, and it’s one of the main reasons homeowners can save so much when switching to solar.
Finally, solar panel manufacturers often provide rebates on their products, reducing your initial cost. Look for these average cost of solar panel installation through your installer or online sources like the solar company’s social media pages. However, these rebates are typically limited-time deals that can change quickly.
In some cases, you can also earn solar renewable energy certificates (SRECs) by providing your electricity production to public utilities under an RPS program. These can add up to significant additional income over the lifetime of your solar system.
Check Your Utilities’ Policies
While the amount of electricity you save with solar will vary based on various factors, such as climate and energy consumption, many families see a significant reduction in their monthly electricity bills after switching to solar. Your savings will be even higher if you utilize a solar battery to store excess energy during peak hours.
One of the most significant factors affecting your solar savings is your utility’s policies regarding solar panel programs. Some utilities have a “net metering” program that credits extra solar electricity sent back to the grid at a value equal to or greater than the retail rate for electricity. However, some utilities have programs that credit extra solar electricity at a lower value, dramatically reducing your overall savings.
The other factor is your electricity rates, especially whether you have Time of Use rates. During peak hour usage, electricity is the most expensive. Using your solar battery to store solar energy for later, you can avoid the highest electricity rates and enjoy the most savings.
Additionally, ensure you choose high-quality solar panels and keep them in optimal condition. Dirty or damaged solar panels can lose their efficiency and diminish your savings. Also, ensure your solar system is oriented to maximize the best sunlight available for your home’s location and latitude.
Check Your Electricity Rates
Solar panels can save electricity for most households, although the money saved will vary from house to house. Start by reviewing your current energy usage in kilowatt-hours (kWh) and the average cost per kWh of electricity in your area. This can be found on your utility bill or through online research. You’ll need to do this for a few months to get a reasonable estimate of your energy costs.
Solar power systems save customers money, reducing or eliminating their electric bills. However, it’s essential to understand that the savings you receive will differ from month to month. These differences are due to weather, energy usage patterns, and electricity rates.
For example, your solar panel system’s electricity will fluctuate based on the time of day and local weather. If you’re on a time-of-use (TOU) pricing plan, this will mean that your solar panels will produce the most energy during peak hours and less during off-peak hours.
You can minimize these fluctuations by reducing energy use during peak sun hours. Also, keeping your solar panels clean will improve their energy production. You can do this by regularly removing dirt, dust, and animal droppings. This will help your solar system function at its best and increase your savings potential.
Get a Free Estimate
The best way to get an accurate estimate of your solar panel costs is to speak with a trusted, reputable local installer. They’ll walk you through the options regarding the size, style, and capability of your panels and the various financing options available for your unique situation. They’ll also consider the varying hardware and soft costs associated with the installation. These include labor, permit fees, sales taxes, and utility interconnection charges.
There are three primary ways to pay for your solar energy system: a cash purchase, a solar loan, and a solar lease or PPA. Paying for your system upfront will save you the most money in terms of total cost. This option also grants you system ownership and qualifies you for applicable rebates and incentives.
Depending on your current utility rates and electricity usage, you can generate enough electricity to offset most of your monthly power bills with a robust solar energy system. In addition to reducing your power bill, many homeowners also choose to install a solar battery storage system with their systems. This allows them to draw electricity from their battery at night or during high utility rates. You’ll still receive a utility bill from your utility company, but this should be significantly less than before.
