Solar panels are more common in homes than ever before; are they really worth the cost? How much money do solar panels save the average homeowner? We tackle that question and more in our homeownership guide to solar panel systems!
Saving With Solar Panels: Is It Worth It?
How much you could save on monthly energy bills depends on many factors; in general, the average homeowner can slash their energy bills to at least over half of what they once were. The average monthly electric bill in the US (at the time of this writing, March 2024) is roughly $140. This number can vary widely depending on location, the state’s energy rates, and monthly energy usage.
The typical monthly energy usage for a home is around 900 kilowatt-hours (kWh), and the typical solar panel system can produce roughly 915 kWh. This number can vary depending on the house size, the season, and how much energy you use. Still, the money you save on average with solar panels is approximately $140 on utility bills each month, or roughly $1,500 per year!
Factors That Determine Your Savings With Solar Panels
While these numbers are averages of US homes, many factors can affect your energy bills with solar panels.
Location
The location of your home is a significant factor in how much you save on monthly energy bills. For one, the electricity rate varies by state, so the savings per kWh are greater in states with the highest rates (Hawaii, Connecticut, and Rhode Island).
Homeowners also must consider how much sunlight their location gets—some places have sunnier and milder weather than others, making them ideal for solar panel systems. While there are federal tax incentives for solar panel installations, some states go further with even more tax credits and government incentives to ease the burden of installation costs.
System Size
The number of panels on your property will also influence your savings. Naturally, the more solar panels, the greater the energy harvesting and the more saved on monthly utilities. However, not every roof can handle large systems, so consider the size and condition of your roof when determining how many panels to install.
Government Incentives
Homeowners should learn everything to know about solar panel installation, including the potential government incentives. The Federal Tax Credit allows homeowners to claim a 30 percent credit on their taxes for panel installation costs!
Some states offer further incentives. For example, Virginia offers homeowners property tax exemptions for years and Solar Renewable Energy Credits (SREC)!
Clearly, you can take advantage of many potential savings in the long term. If electricity consumption is putting a serious dent in your budget and is only getting more expensive, consider investing in solar panels for long-term savings.
Related Posts:
- How important is to keep your solar panels clean?
- What are the advantages of large solar farms?
- Aesthetic Considerations When Planning for Solar Panels
- 4 Reasons to buy solar panels
- 6 Things to Consider Before Installing Solar Panels
- Why Your Neighbors’ Solar Panels Could Be Saving You Money Through Net Metering
