how much money do you save with solar panels

How Much Money Do you Save with Solar Panels?

Do solar panels help you save money? This is one of the most common questions we receive.

Solar power technology has advanced dramatically over the years, making it a more efficient energy source with the potential to reduce installation and maintenance costs. In other words, solar panels are now more inexpensive, encouraging users to convert to a more environmentally responsible method of generating power while potentially saving money on utility bills.

However, some consumers are hesitant to commit, most likely because it is more expensive upfront than regular electrical line installations.

And it's not surprising. When making a large investment, you want to know if your money is being wisely spent.

The solution to this question is actually not so simple. In truth, there are several variables to consider when calculating the ROI of your possible solar panel purchase.

To begin, where do you live? Is there a lot of sunlight in your location, or is it generally cloudy?

These are some of the questions that must be answered in order to calculate the savings that solar panels may provide.

During our study, we discovered that the bulk of papers on the subject appear to be fairly hazy. They provide no real-world examples of people who use solar panels and fail to emphasize the relevance of location.

In this post, we'll look at how much money solar panels save on average, depending on where you reside.

Do solar panels really save you money?

The straightforward response to the question "do solar panels truly save you money?" is yes. Having said that, the amount you'll save is determined by a variety of circumstances. The number of direct hours of daily sunshine, as well as the size and angle of your roof, are all crucial factors in deciding how much solar can save you.

With so many trendy investment opportunities available today, it's easy to be skeptical of new products that promise to "save you tons of money." Solar panels are no exception – saving money by lowering your electric bill is one of the main appeals and selling points for solar as a product and home upgrade.

How much money do solar panels save you on electric bills?

When it comes to potential energy savings, solar panels have long been a terrific alternative. However, you should be aware that the amount you save will vary based on a number of circumstances. We may make an approximation based on average statistics.

According to the US Energy Information Administration (EIA), the average home consumes 887 kWh and spends around $115 each month. A 2-square-meter solar panel may provide up to 45 kWh of alternating current every month. To totally meet the monthly average consumption of 887 kWh per family, you'll need 20 panels totaling 8kWp and delivering 900kWh 45 output every month.

With each panel providing 400 watts per hour, the total output for all 20 panels is 8,000 watts per hour. If this seems excessive, keep in mind that you may make money from the extra energy your system generates and exports back to the grid. Solar panels utilize the sun, a sustainable energy source, so it is not wasted.

If enough solar panels are placed to match the typical monthly power demand, a home might save US$1,384 per year—or not have to pay for electricity at all—using this plan.

Solar panel savings estimates by state

StateAverage Price (6 Kw Solar System)Average Electricity Rate Per State ($/Kwh)20-Year Savings
New Jersey$11,011$0.1592$29,688
New York$13,853$0.1928$35,436

*Please keep in mind that the federal tax credit is applied to the above table.

Electrical Appliances That Consumes a Lot of Power

Certain home equipment takes a lot of energy. You can switch some for energy-saving alternatives while keeping in mind that the amount of electricity they require may be sufficient for other products. This way, you may be more conscious of your consumption and perhaps save money.

Refrigerator - Having a fridge at home is vital to keep food and produce fresh, but it typically consumes a lot of energy because it is switched on 24 hours a day, seven days a week. The average usage of a 16-cu. ft. refrigerator consumes 1,200 watt-hours every day. Choose a size that is appropriate for your family's requirements (not too large or too little) and keep it a few inches away from the wall for adequate ventilation.

Water heater - Warm baths are quite pleasant, but if you enjoy taking long showers, keep in mind that a water heater may burn 4,500 watt-hours each day. While it's fine to splurge every now and then, being conscious of your shower time might help you save money on both your electric and water bills.

Air conditioner - While an air conditioner is a must-have during the summer months, it is also one of the most often abused equipment. The type of air conditioner, the size of the space you're cooling, and the length of time it's running are all variables that contribute to a larger power cost. Set timers if feasible to keep track of your consumption.

Clothes Drier - Another helpful device to have around, especially during wet or colder seasons, is a clothes dryer. The main drawback is that it consumes around 3,000 watt-hours every day. It's usually ideal to use the sun's warmth to dry garments whenever feasible. As a result, you won't have to use it all year.

Incandescent Light Bulb - A room with four 100-watt lights may consume 400 watt-hours per day—and that's only one room. In comparison, a LED bulb consumes only 10 watts, which is ten times less than a typical bulb. If you think this amount is trivial, think again. It is far preferable to choose these energy-saving solutions.

Desktop Computer - If you use your desktop computer for eight hours or more every day, you should be aware of how much energy it consumes at home. While you may not have much control over this, especially if you work from home, remember to disconnect your gadgets when not in use. If at all feasible, use a laptop. Not only does it use less energy, but it also eliminates the need to constantly plug into an outlet.

Another Reason to Go Solar

If you've been debating whether or not to switch to solar energy, perhaps these figures can help you decide. You not only enhance your chances of saving money on electricity, but you also contribute to making the world a greener environment.

Forme Solar, a leading Solar Company in Los Angeles, California, and Orange County, is here to answer any questions you may have about going solar. Please contact us for a quote right away!